Robert Kiyosaki predicts the failure of a third U.S. bank, while Peter Schiff predicts a “greater collapse” in the future
According to Kiyosaki, his estimate coincides with a 2008 prediction of the bankruptcy of Lehman Brothers. Notably, the collapse increased the financial crisis of 2008, and the occurrence was seen as a critical point.
“Two Large Banks have failed. #3 prepared to go. Purchase now genuine gold and silver coins. No ETFs. As Bank No. 3 fails, gold and silver prices rise. 2008 I predicted the fall of Lehman on CNN days before it occurred,” he stated.
Historically, Kiyosaki has predicted a more significant global economic collapse and noted that bank runs might escalate due to the crisis.
Kiyosaki’s prediction of a third bank failure comes as uncertainty grows about the future of Credit Suisse, another investment bank that has shown support for cryptocurrencies.
The bank announced a delay in the annual report after a Securities and Exchange Commission (SEC) call addressing the lender’s 2019 and 2020 cash flow statements. On March 10, 2023, the bank’s stock reached a new all-time low.
In addition, Finbold reported in October 2022 that Graham Stephan, a real estate investor, suggested that Credit Suisse could be in a “critical moment” after the bank’s credit default swaps (CDS) costs, which are essentially insurance against a potential default, reached their highest level since 2008. Significantly, Credit Suisse’s CDS continued to increase in 2023.
Peter Schiff, an economist and crypto skeptic, has said that the U.S. banking sector is on the approach of witnessing a “far larger collapse” than the 2008 financial crisis. Schiff warned on March 10 that mass withdrawals would result in failures.
“The U.S. financial system is on the brink of a collapse even more severe than 2008” Banks own exceptionally low-interest long-term debt. They cannot compete with Treasurys with short maturities. “A giant wave of bank collapses will ensue from mass withdrawals by depositors seeking greater returns,” he said.
Concerns in the financial sector were sparked by the failure of Silvergate Bank, a lender that primarily worked with crypto firms. The bank’s decision was made “in light of recent industry and regulatory developments,” according to the bank.
The decline has resulted in a crypto market crisis, resulting in a significant capital outflow from the industry. At the same time, Bitcoin (BTC) fell to lows not seen since last year’s bear market.
In contrast, Silicon Valley Bank, the sixteenth-largest lender in the United States, ceased operations and was taken over by authorities. Also, the bank has exposure to crypto businesses and Silicon Valley corporations, particularly technology startups.
The shutdown has also affected the cryptocurrency market since Circle, the issuer of the USDC stablecoin, disclosed that a portion of its reserves was kept at SBV. At the time of publication, the USDC had decoupled from the dollar to reach $0.91.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.