{"id":1291594,"date":"2023-05-21T08:10:18","date_gmt":"2023-05-21T12:10:18","guid":{"rendered":"https:\/\/bugaluu.com\/news\/the-five-stages-of-bank-failure-grief\/1291594\/"},"modified":"2023-05-21T08:10:18","modified_gmt":"2023-05-21T12:10:18","slug":"the-five-stages-of-bank-failure-grief","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/the-five-stages-of-bank-failure-grief\/1291594\/","title":{"rendered":"The Five Stages Of Bank Failure Grief"},"content":{"rendered":"
\"\"<\/a><\/div>\n

The Five Stages Of Bank Failure Grief<\/span><\/p>\n

\n

Authored by Doug French via The Mises Institute,<\/em><\/a><\/p>\n

The talking heads on financial TV ask everyday where we are in the banking crisis.<\/p>\n

Is it over yet?<\/p>\n

After scooping up First Republic, JP Morgan\u2019s\u00a0Jamie Dimon<\/a>\u00a0said, \u201cThis part of the crisis is over.\u201d <\/strong><\/em><\/p>\n<\/p>\n

After he said that, however, the shares of regional banks such as PacWest, Zions, and Western Alliance were cut in half.<\/p>\n

The market doesn\u2019t believe Mr. Dimon.<\/strong><\/p>\n

Elisabeth K\u00fcbler-Ross described five stages of grief: denial, anger, bargaining, depression, and acceptance. <\/strong><\/em><\/p>\n

\u200eOn Twitter, describing the typical timeline for a banking crisis, Real Vision\u2019s Raoul Pal\u00a0posted<\/a>:<\/p>\n

\n

It\u2019s one bad apple,<\/p>\n

Well maybe it\u2019s just a few<\/p>\n

\u201cBanks remain strong\u201d<\/p>\n

It\u2019s the evil short sellers (we are considering a ban)<\/p>\n

Ok, now we are banning shorts<\/p>\n

Oh, seems that didn\u2019t work<\/p>\n

Cut rates<\/p>\n

That didn\u2019t work<\/p>\n

Panic<\/p>\n

Change .\u00a0.\u00a0.<\/p>\n<\/blockquote>\n

K\u00fcbler-Ross\u2019s denial <\/strong>stage would include Pal\u2019s \u201cone bad apple,\u201d \u201cjust a few,\u201d and \u201cBanks remain strong.\u201d<\/p>\n

The anger <\/strong>stage would be \u201cevil short sellers,\u201d \u201cbanning shorts,\u201d and it \u201cseems that didn\u2019t work.\u201d<\/p>\n

The bargaining <\/strong>stage would be \u201cCut rates\u201d and \u201cThat didn\u2019t work.\u201d<\/p>\n

Depression <\/strong>would be \u201cPanic,\u201d<\/p>\n

with \u201cChange\u201d being the acceptance <\/strong>stage.<\/p>\n

We clearly appear to be only in the anger stage.<\/strong> Kimberly Adams writes for\u00a0Marketplace<\/a>:<\/p>\n

\n

The American Bankers Association is laying some of the blame for that at the feet of\u00a0short sellers trying to scare people into thinking banks are about to go under<\/a>\u00a0so that the stock price falls and they can profit. On Thursday, the ABA\u00a0sent a letter to the Securities and Exchange Commission<\/a>\u00a0asking the agency to look into the issue. .\u00a0.\u00a0.<\/p>\n

\u201cWe\u2019ve been in constant communication with our members, and they\u2019ve shared with us their concerns, including engagement that they\u2019ve seen on social media,\u201d said Naomi Camper, chief policy officer at the ABA.<\/p>\n

\u201cAnd many believe that their shares have been manipulated by short sellers. They\u2019re seeing trading in their shares that defy the underlying fundamentals, and they\u2019re worried about it.\u201d<\/p>\n<\/blockquote>\n

During the Q and A at Berkshire Hathaway\u2019s annual meeting televised by CNBC, Warren Buffett mentioned a bank stock short-selling ban.<\/strong>\u00a0<\/p>\n

Reuters<\/a>\u00a0reports that Wachtell, Lipton, Rosen & Katz, a law firm that has represented large companies, said in a letter to clients that \u201cthe Securities and Exchange Commission (SEC) should regulate what it defined as \u2018coordinated short attacks\u2019 by imposing a 15-trading day prohibition on short sales of financial institutions.\u201d<\/p>\n

Taking the other side of the argument is longtime bank analyst Dick Bove.\u00a0Bloomberg<\/a>\u00a0reports:<\/p>\n

\n

\u201c\u2018The funds and others who are shorting bank stocks are doing the American public a meaningful service,\u2019 <\/strong>analyst Bove said in a note. <\/em><\/p>\n

\u2018They are winnowing the banking industry and forcing these companies to stabilize their financial statements.\u2019\u201d<\/strong><\/em><\/p>\n<\/blockquote>\n

Bove is right.<\/p>\n

The average depositor can\u2019t make heads or tails of their bank\u2019s financial statements.<\/p>\n

[ZH: Despite the bounce in regional bank stocks this week, small bank deposits continue to flood out of the system…]<\/em><\/p>\n

<\/a><\/p>\n

At least short sellers give John and Jane Q. Public a heads-up about their banks. <\/strong><\/p>\n

Bank regulators are like the fire department, the hook and ladder doesn\u2019t arrive until a house is fully inflamed.<\/p>\n

If it plays out the way Mr. Pal believes, a couple more banks will fail, the Securities and Exchange Commission will impose a short-selling ban, and then a few more banks will fail. Then, it will be time for a Federal Reserve rate cut.<\/strong><\/p>\n

Reuters\u00a0reports<\/a>\u00a0that the Fed futures market is factoring in a more than 70 percent chance of a rate cut at the Fed\u2019s September meeting.<\/p>\n

This summer may be an interesting one.<\/strong><\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nSun, 05\/21\/2023 – 11:30<\/span><\/p>\n

From:Zerohedge<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The Five Stages Of Bank Failure Grief Authored by Doug French via The Mises Institute, The talking heads on financial TV ask everyday where we…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1291594","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-5q0a","jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1291594","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1291594"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1291594\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1291594"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1291594"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1291594"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}