Here I make the case that the financial crisis engulfing the USA's banks and financial sector can be traced straight back to Biden's inflationary green energy push.
Green energy transition will further fuel inflation: Bank of America.
Two regional US banks have gone to the wall, central banks on both sides of the Atlantic have been forced to provide hundreds of billions of dollars in emergency lending to shore up the financial system, and the Swiss financial group Credit Suisse has been ignominiously absorbed into the larger UBS at the behest of its regulator.
Interest rates would fall, in anticipation of inflation dropping, and bond prices would rise, providing immediate relief to those banks which are quietly on the brink of an insolvency crisis.
Countering the financial forces which are driving the US banking crisis would require Biden to renounce his Net Zero green energy fantasies, and copy President Trump's energy policies, to alleviate pressure on energy prices and food affordability, two of the major US measures of inflation.
The only remaining question, how were banks caught so flat footed by the fall in in the value of their bond holdings? Banks have access to financial instruments such as put options and futures, which could have been used to hedge their bond holdings against inflation driven loss in value.
There is only one explanation which makes sense to me - the banks which are currently suffering distress miscalculated, they weren't anticipating that inflation would be so bad. Perhaps some bankers actually believed Biden's green energy transition would succeed, and positioned their portfolios in anticipation of that success.
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