“The pressure on banks will rise”
Elliott Wave International
The phrase “Everything Bust” means a bust in just about every financial risk-asset of which you can think, as well as the economy and, I dare say, the financial system itself.
Indeed, in a section titled “The Everything Bust Is on The Way,” the December Global Market PerspectiveA monthly Elliott Wave International publication that covers 50+ financial markets was noted:
As the economy goes south, banks will feel more pressure.
We now have these headlines
- Silicon Valley Bank Failed After a Run on Deposits (The New York Times March 10)
- Silvergate, a crypto-focused bank, is closing its doors and liquidating following market meltdown (CNBC March 8).
Silicon Valley’s collapse was the biggest bank failure since Washington Mutual in 2008 and the second largest bank failure in U.S. history.
Wall Street attributed the triple-digit declines of the Dow Industrials to bank failures. However, the real “bust” in the Dow Industrials and S&P 500 began a year earlier, in January 2022. It reflected a downturn in a social mood; today’s bank failures have the same roots that stretch back months and months. Social media has changed the way we live.