Posted on 10/03/2022 6:26:37 PM PDT by RomanSoldier19
Komal Sri-Kumar, the president of Sri-Kumar Global Strategies, believes global central banks could soon face an important “credit event” after hastily raising rates, with Credit Suisse’s financial health a possible contender.
“I think the Federal Reserve is going to have to face the consequences of a credit event” if it were to occur, Komal Sri-Kumar told CNBC’s “Squawk Box Asia” on Monday. “Something is going to break.”
“This may or may not be a Lehman moment,” he said when asked about Credit Suisse and referring to the collapse of Lehman Brothers in 2008, which triggered a string of big Wall Street bailouts and a subsequent financial crisis.
Over the weekend, several media outlets reported that Credit Suisse sought to assuage investors’ concerns over its financial health — the Swiss bank reportedly contacted its biggest clients after its credit default swaps rose sharply.
(Excerpt) Read more at cnbc.com ...
The fed sent teams of bank stress test analysts all over the country in surprise audits for years during 2008, 2009, 2011, and 2012. I knew several of them from the hotels they lived in. I hope they still are doing the same?
Ah, the Enron ride.
It would be interesting to know how much the inflation has affected the US debt - rates before versus rates now.
The US and the UK are both far over the line into unrecoverable bankruptcy. The end of central banking and its fiat currency is baked in.
There is war between then and now though. The parasites will take at least one more feeding off the dying husk of the West.
Those are tough words.
Suisse is a protectorate.
Time might get real.
Caution:
The markets can remain irrational longer than you can stay solvent.
What happened with the Fed Governors meeting this morning?
Free money ain’t so free now and it’s getting much more expensive. Debt service has to be getting them nervous.
In those years you stated, there was no serious inflation, therefore FED was very cautious about rates.
This year, the inflation genie is out of the bottle, and is one of the top issue in campaigns for fall. My guess is FED will keep increasing rates by 3/4 or 1/2 points for some time to come, until inflation numbers come down substaially. Inflation affects heckuva lot more voters than Credit Suisse going belly up.
Elections coming up in 2022 and 2024 concern the PTB much more than future debt service costs. Inflation is high on voters list of concerns.
From what I can see, service cost on debt will not increase directly proportional to Fed Funds Rates. Because the 30 year, 10 year, 5 year bonds were issued at lower rates and will not require any higher interest payments. Only newer issue bonds are affected.
I thought the government shifted all their debt to short term to lower the cost? But what I know about monetary policies couldn’t fill an eye dropper.
Fear and loathing I imagine.
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