"Money" can be anything that two parties agree upon. In a more primitive society you might trade ten cows for a acre of farmland. Cows are harder to spend so man started using gold, silver, paper money and now crypto.
A solar flare or EMP blast could wipe out crypto. But precious metals have always been there.
(Epoch Times) It has been nine months since the spectacular and sudden collapse of Silicon Valley Bank. After witnessing three of the four largest bank failures in U.S. history in 2023, the attention of the media and the markets has turned elsewhere.
Banking crisis? It is as though it never happened. Having fallen by some 40 percent in March, the NASDAQ Bank Index has recovered to within 15 percent of its high from February. In the last few months, nearly all markets have gone on a bull run, including bank stocks. Yet, and despite the relative quiet, the banking sector is not in great shape. Here are some of the reasons why.
Banks continue to lose deposits.
According to data from the Federal Deposit Insurance. Corp. (FDIC), U.S. banks have now lost deposits for six consecutive quarters. While the pace has slowed from the first quarter of 2023, in which nearly $500 billion of deposits were removed from the banking system, approximately $190 billion of deposits have been withdrawn in the last two quarters.
Indeed, U.S. banks have lost a net $1.1 trillion of deposits since the beginning of 2022 when interest rates began to rise.
With customer deposits growing scarce, U.S. banks are instead relying on emergency funding lines from the Federal Reserve Banks and the Federal Home Loan Bank (FHLB) system.
1 comment:
Keeping track of gold and silver is high impossible. Keeping track of crypto exchanges isn't difficult. They just have to decide they want to do so.
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