Who is Going to Save Banks?

If you are bearing this bear market with all your patience, you have valid reasons and high hopes for the future of the crypto ecosystem. Obviously, decentralization and being your own bank became more important issues in our lives.

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Crypto, innately, goes against the corrupted finance system of the world. The first block of Bitcoin clearly goes against the fraud by Banks by coding the news "Chancellor on the brink of second bailout for banks" and the tax burden that some parties create.

Obviously, both crypto and stock investors expect something positive from the FED over the case of the Silicon Valley Bank shuttering. This time Jannet Yellen stated that Government won't bail out SVB. Then, the superhero is not going to show up while everyone is calling out.

The Federal Deposit Insurance Corp wears the Cape

This time the names will change but the result won't. According to Yahoo, FDIC sets to create a fund to protect the banking system and the banks that are exposed to Silicon Valley Bank.

The fund will provide more liquid for the banks and I believe there will be more need for that. In such high-risk and globally feared cases, the money will seek "safer" places such as assets/commodities with limited supply.

The vicious cycle will not be broken whichever wears the red cape and funds the banks. The wrong decisions (such as drowning the markets with constant fear and printing a countless number of money) create problems for financial services. financial services bring problems for people and their life savings. To secure their life savings these people, they are forced to pay more taxes.

So, in the broader sense, I bailout the bank that could not leverage the risks and maintain its operations successfully. My time and efforts become the fuel of the current system and all these happen while money inflates with increasing numbers.

Numbers Up while Taxes Eat Up

The numbers look nice if you consider your monthly earnings. You doubled your money in 2 years, hurray!

Once the growing taxes and inflation are hand in hand, they are melting the debts of governments while carrying the wealth from some parties to others. Inflation is like a drug, honestly, if you experience inflation in a developing country, you feel what I mean.

Your happiness only lasts for 1 month as the next ones will turn into nightmares when the decreasing purchasing power hits you hard.

The first rule of the market is broken, there is no free market anymore. I see the problems that started to pop up a bit ridiculous and artificial. Not genuine, not reasonable, and easy to solve.

Anyway, we started to save some banks already. Sooner than expected, isn't it?

Posted Using LeoFinance Beta



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Banks tend to feed on other banks.

I've looked at the merger chains involved in the banking world.

It appears that the banking sector has a long history of collapsing in on itself.

The public does not notice it because banks (subsidized by the Feds) have a history of buying up the accounts and IP of the failed banks.

The public just sees the buildings and the brands and fail to notice that the ownership of the banks keep changing.

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So if I read it right, the Fed will cover the banks' backs (and I bet the executives still get to keep their bonuses), but not the investors, and especially not crypto companies that had funds lodged with the banks. Got it.

It does make me wonder why the crypto businesses concentrated so many funds in the one bank rather than splitting the risk as many ways as they could (you know, like... decentralising it...) or even better, not keeping it all in dollars and putting a big chunk of the cash into gold, silver, foreign currencies etc.

Hopefully other stablecoin creators will learn to spread the risk further and reduce their vulnerability to the Fed's decisions or the wrath of the legacy banking system, assuming they need to keep actual collateral rather than going purely algorithmic.

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Sustaining a stablecoin project is one of the hardest things in crypto IMHO.

Printing the reserve money is a huge privilege and it has its genuine risks. There must be another and better way to make it on blockchain.

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Who will save the banks?

To secure their life savings these people, they are forced to pay more taxes.

You answered that question and BOLD it... As always, people will pay the price and "save" banks... until the next crisis...

Keep calm and stake HIVE... 😃

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The calls to save the banks have already started because there are a ton of wealthy people who will be losing a lot of money if it doesn't happen. However, I don't think all the banks will fail. I think it will be the small and regional banks that suffer the most because they don't have the cash to shore up the balance and the bigger banks will be fine. The bigger banks are also more diversified in terms of customers but I do agree that it will be causing a larger issue on the side of banking.

Posted Using LeoFinance Beta

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