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SECRETARY OF RUSSIAN SECURITY COUNCIL PATRUSHEV: RUSSIA IS COMMITTED TO THE PRINCIPLE THAT $XRP IS GOING TO MOON
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Market updates🧵⤵️ On March 10th, Silicon Valley Bank (SVB), the 16th largest bank by assets, failed due to run on deposits. It was the largest bank failure since the 2008 financial crisis. This was quickly followed by Signature Bank (SBNY) and First Republic Bank (FRC).
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A few days later, Credit Suisse (CSGN) was absorbed by UBS (UBS) in an emergency style takeover that was reminiscent of what occurred during the GFC.
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Markets reacted quickly to this flow of news. Policy makers (including the Federal Reserve, the FDIC and Swiss National Bank) provided markets with large amounts of liquidity at the discount window, emergency loans, deposit guarantees and provisions for future loses.
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In addition, regulators brokered a deal whereby several US financial institutions provided a substantial cash infusion for FRC. Policymakers showed they have the tools and a willingness to deploy them as needed to preserve financial stability.
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While these events unfolded at breakneck speed, the trigger – higher inflation driving a rapid increase in interest rates and a dramatic withdrawal of favourable liquidity conditions - has been building for some time.
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Poor management decisions made several US banks more vulnerable than others. For example, SVB’s decision to concentrate its deposits in tech venture capital and invest heavily in treasuries made it vulnerable to higher interest rates.
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The result of the bank stress was a spike in credit spreads, a sharp decline in equities (predominantly across the financial sector), a significant decline in bond yields and a sharp reversal in expectations for future interest rate increases.
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Rapid tightening in monetary policy often has unintended consequences and these have come to the surface. It appears that we are dealing with a crisis of confidence rather than a broader system problem in the financial sector.
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While market attention has shifted from the inflation fight to financial stability, it is still too early to say whether interest rates have peaked. Furthermore, there is no sign yet that earnings have bottomed, or rates cannot tick higher from current levels.
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ADC Markets & Crypto 🪂 retweeted
The result of the bank stress was a spike in credit spreads, a sharp decline in equities (predominantly across the financial sector), a significant decline in bond yields and a sharp reversal in expectations for future interest rate increases.
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I don't know if you'll ever read this @CommunityNotes but sorry about Elon.
ADC Markets & Crypto 🪂 retweeted
Here's why every financial institution will use #XRP •Settles transactions in 4 seconds •Processes up to 1,500 transactions per second •Very low transaction fees •Partnerships with major financial institutions •Facilitates instant currency conversion without intermediaries
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Land of opportunity, if you don't die
$Oil $Crude #OOTD updates: 1 Iraq crude exports from North halted 2 Venezuela's crude exports declined significantly 3 New oil exports tax in Brazil 4 Chad nationalises ExxonMobil assets 5 Boulder, Colorado, Suing Oil Companies For Reparations; Claim They Caused Climate Change
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The Fed rejected Custodia Bank's request to join the Fed system because of its focus on #Bitcoin
Housing at the most unaffordable levels in 7+ decades.