As details of the First Republic Bank acquisition continue to be announced, bank shareholders are starting to worry that they will be the next to be robbed, and it would be strange if the stock price of the banking sector did not fall.
However, this bank robbery is not without cost, for example, today the FDIC (Federal Deposit Insurance Corporation) asked the big banks to replenish their deposit insurance funds, indicating that the crisis has put enormous pressure on deposit insurance, and if there is really a large number of bank failures, the FDIC may also be unable to protect itself.
Theoretically, even if the appetite of these large banks is good, it is impossible to rob all the small and medium-sized banks in one pot, but from the data, there is no sign that the big banks have had enough, there must be other victims, so the market is spreading panic.
But in fact, this big bank eating small bank is actually promoting the formation of a monopoly organization, hoping to forcefully distort the market logic through monopoly.
The reason for this is that, on the surface, it is to collect inflation, but the essence of inflation formation is the long-term economic structural imbalance in the United States, the continued imbalance has led to the accumulation of social contradictions, and the internal and external difficulties of the U.S. government has become increasingly obvious, it needs to consolidate power, it needs money and power, so it has to rob.
Since it can't grab what it wants in the international arena, it naturally can only go to grab its own people's heads.
From the point of view of the current political situation in the United States, there is no sign of any improvement, so they must continue to rob.
However, the U.S. top-level building may have overlooked an important fact, that is, before the outbreak of the epidemic, the rich and poor in the United States has been very serious divide, low- and middle-income people would have been poor enough, and how to scrape the land can not collect anything, so they are now actually in the fishing.
So, the more they grab, the more extreme the division between rich and poor, and then make the capital liquidity declining, in other words, this will be the United States own economy to collapse, so no matter for which reason, the United States banks will be a whole piece of a whole piece of down, and certainly not only concentrated in small and medium-sized banks, large banks may also suffer.
This shows that the U.S. government as long as the old hegemonic thinking, not to find a step for themselves, these economic chaos is only likely to intensify, but from frugal to extravagant easy, from extravagant to frugal difficult, I do not think the U.S. government is likely to do, this is simply a death spiral, the end result is bound to be the fall of the U.S. government, the U.S. economy will also be a stumble.
However, this bank robbery is not without cost, for example, today the FDIC (Federal Deposit Insurance Corporation) asked the big banks to replenish their deposit insurance funds, indicating that the crisis has put enormous pressure on deposit insurance, and if there is really a large number of bank failures, the FDIC may also be unable to protect itself.
Theoretically, even if the appetite of these large banks is good, it is impossible to rob all the small and medium-sized banks in one pot, but from the data, there is no sign that the big banks have had enough, there must be other victims, so the market is spreading panic.
But in fact, this big bank eating small bank is actually promoting the formation of a monopoly organization, hoping to forcefully distort the market logic through monopoly.
The reason for this is that, on the surface, it is to collect inflation, but the essence of inflation formation is the long-term economic structural imbalance in the United States, the continued imbalance has led to the accumulation of social contradictions, and the internal and external difficulties of the U.S. government has become increasingly obvious, it needs to consolidate power, it needs money and power, so it has to rob.
Since it can't grab what it wants in the international arena, it naturally can only go to grab its own people's heads.
From the point of view of the current political situation in the United States, there is no sign of any improvement, so they must continue to rob.
However, the U.S. top-level building may have overlooked an important fact, that is, before the outbreak of the epidemic, the rich and poor in the United States has been very serious divide, low- and middle-income people would have been poor enough, and how to scrape the land can not collect anything, so they are now actually in the fishing.
So, the more they grab, the more extreme the division between rich and poor, and then make the capital liquidity declining, in other words, this will be the United States own economy to collapse, so no matter for which reason, the United States banks will be a whole piece of a whole piece of down, and certainly not only concentrated in small and medium-sized banks, large banks may also suffer.
This shows that the U.S. government as long as the old hegemonic thinking, not to find a step for themselves, these economic chaos is only likely to intensify, but from frugal to extravagant easy, from extravagant to frugal difficult, I do not think the U.S. government is likely to do, this is simply a death spiral, the end result is bound to be the fall of the U.S. government, the U.S. economy will also be a stumble.
