Fractional Reserve Banking is just a foundation of sand.

How are you feeling this week?

Probably feeling better than anyone left holding Credit Suisse shares Sunday night. They got bought out by UBS at a Market Cap of $2 Billion. Their Market Cap on Friday for reference was $8.5 Billion according to Axios.

That hurts.

Lets start from the beginning;

Lets start this off with a recap of the whole banking crisis saga to this previous Friday the 17th, brought to us by Axios.

Today I’m going to go through a quick roundup of the… humorous events so far. Lets bring some levity to the collapse of the financial world.

Credit Suisse is being aquired by UBS.

There’s a lot to be said about the most recent development in this mess. The infallible Jim Cramer recently said he was bullish on CS.

The above mentioned merger with UBS would represent a ~75% drop in value from close of markets on Friday.

The merger would wipe out roughly 17 Billion dollars worth of AT1 corporate bonds, written down to $0 in value.

They’re calling in Buffet to save the banks. Again.

You know its all going to shit when Uncle Joe has to go talk to The Oracle of Omaha and ask for advice. This wouldn’t be the first time the big man put his money into distressed banks, notably Bank of America in 2011 and Goldman Sachs in 2008.

Statements from the Fed and Treasury are contradictory at best.

Now take this information and compare to rumors on twitter of Central Bank Liquidity Swap (CBLS) arrangement rumors.

Strange, I thought liquidity was robust?

Just in case you didn’t know what a CBLS is, here’s a lovely little video the NY Fed made

With a graph straight from the Fed, this is a link to watch closely in the coming days and weeks.

Iran and Saudi Arabia have resumed normalized relations, with the mediation being done by… China.

These developments have stoked fears that a deal to trade oil in the Chinese Yuan may be on the horizon. China is already one of Saudi Arabia’s largest oil customers, and bringing Iran into the fold is a major step towards peace in the Middle East. The loser in the situation? The status of the USD as the global reserve currency, as the Kingdom has traded 80% of its oil output in USD since the 70’s when President Nixon promised them military support and security for as long as they used our currency.

That all may be changing now.

BTC is at $27K

And to top it all off, Paris is burning.

Sounds like they’re looking at guillotines by the 24th. Elon summed up the situation pretty well.

Well I guess that sums it up for now.

Pretty Black-pilled start to the week. Do we collapse in to Weimar Republic hyperinflation, or does the Fed/Treasury actually pull this off and keep the fractional reserve house of cards standing for another week. Lets find out together ❤️

If the world hasn’t collapsed, I’ve got a showcase for you on Wednesday. I’ll see you then. Make sure you join me for next weeks Community Collabs, and general shiposting about the economy over on our Discord Server!

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