Last Year’s Bank Failures and What It Means for March 2024…

In March of 2023 there were three banks that failed that put the banking world into a panic and the Fed was worried about the bank run contagion to send more banks belly up.

It started with Silicon Valley Bank, First Republic Bank and Signature Bank.

Based on some of my sources, the FDIC program, which is supposed to promise you protection up to $250k, was exhausted with only three out of over four thousand FDIC banks taking a tumble.

That is very concerning…

“Luckily” the Fed got some larger banks to go financially back the depositors of the three failing banks and then the Fed created a new funding program called the “Bank Term Funding Program”.

In the chart below you will see over $100 Billion dollars injected seemingly overnight to help stimulate struggling banks.

Where did the funds come from???

Well that’s another story.

In the press release last Thursday, (see below), the Fed announced that the program will cease making new loans on March 11, 2024. Thus not backing the liquidity positions of other banks.

So in your opinion is everything fine and dandy now, banks are now suddenly strong with virtually no positive macroeconomic changes in the last year?

Or are you with the camp that believes the drying up of liquidity could trigger some type of economic event in the first few months of 2024?

Regardless of what happens it begs the question, are you prepared?

Our economy and the world at large has too many loose ends right now, it’s not the time to bury your head in the sand.

We know it can be overwhelming, so if our team can help you navigate through this please reach out and let us know.

Stay vigilant!