financial collapse

The black swan is difficult and sometimes impossible, to predict. And yet, if the markets are falling, it means that someone has started to sell. It means that someone is aware of the situation and decides to act, collapsing the markets. This "someone" is the largest banks, investment funds, insiders, and other "close" people and companies, and then the algorithmic robots, smaller funds, traders, and so on down the chain begin to sell. As a result, the global financial markets collapse.

The main topic of the world media кrecently was the collapse of Silicon Valley Bank (SVB) in California. In 2020-2021, this bank was actively attracting deposits and investing depositors' funds in bonds, but as the Federal Reserve (Fed) tightened its monetary policy, the yield on them began to fall far behind securities of new issues, and prices began to fall. U.S. regulators are still trying to understand the scale of the problem, but it is already known that several regional U.S. banks are at risk.

Key events:         UK – CPI (YoY) (Feb) Eurozone – ECB President Lagarde Speaks      USA – Crude Oil Inventories USA – FOMC Economic Projections      USA – Fed Interest Rate Decision USA – FOMC Press Conference The Federal Reserve began its two-day monetary policy meeting yesterday while the market is still under stress after three weeks of severe financial instability on both sides of the Atlantic.

Key events:         USA – Building Permits (Feb)    USA – Initial Jobless Claims USA – Philadelphia Fed Manufacturing Index (Mar) Eurozone – ECB Monetary Policy Statement      Eurozone – ECB Interest Rate Decision (Mar)   Eurozone – ECB President Lagarde Speaks The U.S. stock market fell after Credit Suisse reiterated concerns about the banking system.