If you cheat, money will follow

Chapter 657 The Fifth Meltdown

After the market closed on this trading day, the media specially invited Wang Wang to the program and deliberately brought the topic to Silicon Valley Bank and the stock market circuit breaker.

Know King himself is from the media, he is a well-known TV star and an Emmy Award-winning legend.

He knows exactly what the media wants to know and what they want him to say.

"Our country is no longer a great country under his (Sleeping King's) governance. It is declining every day, mind you, every day. It has become a joke to the whole world."

"The failure of Silicon Valley banks is not an accident. The next one will be seen soon. Believe me, no one understands bank failures better than me..."

"I think we should get used to circuit breaker. Today is his fourth time, and soon he will have his fifth time. Maybe it will be tomorrow, maybe the day after tomorrow, it won't be long."

"Trust me, no one knows circuit breaking better than me."

"..."

The show set a ratings record for the year.

Sleeping King also watched it, and watched the entire speech.

Therefore, he will be so angry.

He banged the table and said to Powell:

"Mr. Powell, do you still need to raise interest rates? The market is panic enough, everyone is panicking."

However, Powell remained unmoved.

He said calmly: "Mr. President, judging from historical experience, market panic is temporary."

"The collapse of Silicon Valley Bank and Signature Bank was due to internal risk management and control problems. Their funds were too concentrated, not caused by interest rate increases."

"Mr. Powell, at present, our inflation is already within a reasonable range, 3.1%." Sleep King said.

"Mr. President, it's still too high." Powell continued to elaborate:

"In February, the national consumer price index rose 2% year-on-year, which was the highest increase since 5.3. This data is unusual."

"Although the unemployment rate was stable in February, non-farm employment growth was very slow, only 2, which was lower than expected."

"This shows that inflation remains high and is our worst enemy, not bank failures."

The Sleeping King is in a dilemma.

In fact, he secretly supports raising interest rates to reduce inflation.

Harvest global assets through the US dollar tide, resolve high debt in North America, and save the North American economy from dire straits.

If the goals are achieved and the debt is reduced, he will go down in history and rank alongside Roosevelt.

However, the current direction of the situation was completely contrary to his expectations.

He had to be careful and cautious.

Bank failures and market meltdowns are never good news.

Moreover, next year will enter an election year...

"Mr. Powell, but the situation is changing now..." Sleeping King said:

"If interest rates continue to be raised, house prices will fall, the value of loan collateral will decline, people will be unable to repay bank loans, and banks will become insolvent and then bankrupt..."

"What happens next? I'm sure you know better than I do."

This is a familiar closed-loop chain.

It appeared in 2007 and 2008.

Now, some indicators are moving closer to this chain.

For example, North American office building values ​​fell by 27%;

Apartment building prices fell 21%;

In addition, the total commercial real estate loans due in 23 and 24 years will reach US$1.4 trillion.

How did Lehman get there? Their assets are closely tied to commercial real estate.

"Mr. President, the problem is not that serious. Silicon Valley Bank is just a regional bank, and it is just an exception." Powell disapproved of the Sleeping King's reminder:

"In fact, as long as our regulatory authorities fulfill their regulatory responsibilities and make changes in their supervision methods, such problems can be avoided."

"In fact, we have considered the possibility of cutting interest rates, but the committee unanimously believes that the current inflationary pressure remains high and it is reasonable to lower the inflation rate to 2%."

"There is a long way to go during this period. If the strategy is interrupted at this time, all our efforts will be wasted."

"Explain that the debt ceiling will be broken, the debt problem will become more difficult, and the possibility of economic recession cannot be ruled out."

Hearing this, the Sleeping King trembled unconsciously.

Obviously, the debt problem is more difficult and serious than the bank failure problem.

"Well, Mr. Powell, I respect the independence of the Federal Reserve Board in formulating interest rate policy..." The Sleeping King took a step back:

"But whatever decisions and choices you make, I hope to help North American families reduce their burden and be in a better economic position than other countries."

"Of course, Mr. President, this is what we have been working towards." Powell nodded.

Since Powell believed that the U.S. stock market circuit breaker on March 3 was an accidental event, the meeting ended that night.

There is no conclusion or attitude.

On March 3, serendipity came.

上午9：30分，标准普尔500指数在10分钟内就华丽跌破7%，又一次触发一级熔断。

Then, the Dow Jones Industrial Index and the Nasdaq Index followed closely, falling more than 7%.

Affected by the U.S. stock market, most stock indexes around the world were not spared...

Britain's FTSE 100 index fell 8.9%;

France's CAC40 index fell 9.7%;

Germany's DAX30 index fell 9.58%;

The Dutch AEX index fell 8.93%;

In the Asia-Pacific region, the Nikkei 225 Index and the South Korea Composite Index fell more than 5%.

However, the domestic stock market opened lower and moved higher. As of the close, Big A rose 1.52%;

The Pengcheng Index rose 2.31%.

Such a sharp contrast further strengthens the role of global assets as a "safe haven".

Global funds are once again flowing into the country wildly, running counter to North America's subjective wishes.

In terms of specific sectors, the main culprits of the circuit breaker in the US stock market are banking stocks and technology stocks.

Among them, First Republic Bank plunged 27% again and was temporarily suspended from trading to avoid excessive volatility.

In addition, Credit Suisse once fell more than 28%.

European banks, including ING, fell 11%;

Deutsche Bank fell nearly 10%;

UBS and Santander fell more than 9%.

Analysts at Bank of America believe: "This is not an isolated case. We are not out of risk yet. If the interest rate environment does not improve, market panic will continue and the risk of regional banks being run will increase indefinitely."

Analysts at Morgan Stanley pointed out: "In the face of the bankruptcy of a major bank, it is not wise to continue to raise interest rates, especially since many regional banks, like Silicon Valley Bank, hold a large number of government bond products."

Goldman Sachs analysts emphasized: "Raising interest rates is a very important reason."

"But irrational fears are also fueling the situation, and some measures may not be effective in the face of panic."

An official from the Ministry of Finance told reporters privately: "There are great differences of opinion internally. The most important thing at the moment is to restore market confidence and prevent more bank failures."

“If interest rates continue to be raised, in the digital economy era, a wave of bankruptcies may occur in the blink of an eye.”

The king of understanding was happy.

Sleeping King not only broke his own record, but also set it far ahead, and he would not let this opportunity pass him by.

He posted on the social media platform "Truth Social" he created:

"We are going to have a greater and more severe depression than the one we had in 1929."

“Bank failures and market meltdowns are evidence of this.”

“Sleepy Joe’s disastrous economy will destroy every North American.”

"His policies will cause pain across the country, and he will go down in history as the new 'Hoover' of the modern era."

Hoover, during his tenure, the Great Depression occurred.

Therefore, this ancient president is recognized as the lowest-rated president in North American history.

Become synonymous with "stupid" and "incompetent".