Wells Fargo notifies customers to be ready to have all their lines of credit shut down

[Gary K]

This is a big deal. It looks like the US economy is about to completely collapse. Multiple economists have been warning for years now that the next big collapse in the US economy will be a total collapse of the credit system, and this looks like a large warning in this direction.

Everything in the economy relies on credit. Transportation services rely on credit for fuel to move the products bought and sold on a daily basis. Manufacturing relies on credit to purchase materials. Many businesses rely on temporary credit to pay their employees. Think about how every part of your life depends on credit. A credit collapse threatens all parts of our lives.

Zerohedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

 

[TomO]

Okay...This is really weird. I don't doubt the report but Wells Fargo was just begging me to take one of their revolving credit lines a couple of weeks ago.
Now this?

 

[Gary K]

Okay...This is really weird. I don't doubt the report but Wells Fargo was just begging me to take one of their revolving credit lines a couple of weeks ago.
Now this?

Every policy stays in place until the policy changes so I don't see anything weird about it at all. In big non-agile corps there can be a 180 flip in policy that wasn't visible until there is a policy change made. And those are made at high levels in the corp. The little people sending out advertising brochures or making phone calls wouldn't know anything about this type of change.

 

[User Name]

This is a big deal. It looks like the US economy is about to completely collapse.

Oh yes, the sky is falling. No doubt about that.

 

[TomO]

Every policy stays in place until the policy changes so I don't see anything weird about it at all. In big non-agile corps there can be a 180 flip in policy that wasn't visible until there is a policy change made. And those are made at high levels in the corp. The little people sending out advertising brochures or making phone calls wouldn't know anything about this type of change.

I suppose you're right....I guess I should know better, I work for one of those "non-agile" (You're being very charitable I might add.) corps.

 

[nikolai_42]

As I recall (and as the article notes), Wells Fargo has been seriously restricted in what it can do because of the illegal activities it engaged in on a large scale. So its being forced to close credit lines may well be just a related business decision. If they are on a short leash, they may not be able to meet the requirements these unsecured lines of credit demand. Not saying there isn't a credit crunch coming - but when I look up, I still see the sky right where it should be.

 

[Gary K]

As I recall (and as the article notes), Wells Fargo has been seriously restricted in what it can do because of the illegal activities it engaged in on a large scale. So its being forced to close credit lines may well be just a related business decision. If they are on a short leash, they may not be able to meet the requirements these unsecured lines of credit demand. Not saying there isn't a credit crunch coming - but when I look up, I still see the sky right where it should be.

As a counterpoint to your looking up and still seeing the sky, watch this video interview of Michael Pento. He is addressing the reverse repo market and how this affects banks and lending.

Fed Kills the Economy – Michael Pento 6.22.21

Join Greg Hunter of USAWatchdog.com as he goes One-on-One with economist and money manager Michael Pento.

rumble.com

 

[User Name]

I still see the sky right where it should be.

But surely the sky must be falling. After all, there's a Democrat in the White House! Oh wait...

Dow jumps 440 points to record, rebounding from one-day slide

The Dow rose 0.2% for the week. The S&P 500 and Nasdaq gained 0.4% and 0.4% since Monday, respectively.

www.cnbc.com

 

[nikolai_42]

As a counterpoint to your looking up and still seeing the sky, watch this video interview of Michael Pento. He is addressing the reverse repo market and how this affects banks and lending.

Fed Kills the Economy – Michael Pento 6.22.21

Join Greg Hunter of USAWatchdog.com as he goes One-on-One with economist and money manager Michael Pento.

rumble.com

I'm not saying we aren't on a roller coaster ride that ultimately results in disaster. But I'm also familiar with the joke that if you ask 10 economists for an opinion you get 11 opinions. I've also seen a number of scare tactics in the past where someone had sure economic evidence of a soon-to-come disaster. Needless to say they are always MUCH better at predicting the past than they are the future.

I'm on board, however, with the idea that there will be a serious monetary crisis (at some point) that will make the Great Depression look easy. That was a given once the Fed was created and given the authority it has. It's just a question of when and how. The fact that I haven't seen other banks follow suit with WF suggests to me that this is probably more about their shady dealings than it is about the ON RRP.

 

[nikolai_42]

But surely the sky must be falling. After all, there's a Democrat in the White House! Oh wait...

Dow jumps 440 points to record, rebounding from one-day slide

The Dow rose 0.2% for the week. The S&P 500 and Nasdaq gained 0.4% and 0.4% since Monday, respectively.

www.cnbc.com

I'm afraid that doesn't give me much confidence :



{Source : https://www.isabelnet.com/sp-500-growth-vs-u-s-real-gdp-growth-vs-sp-500-sales-growth/}

 

[User Name]

I'm afraid that doesn't give me much confidence: https://www.isabelnet.com/sp-500-growth-vs-u-s-real-gdp-growth-vs-sp-500-sales-growth/}

I'm also of the opinion that the stock market is grossly inflated. But hey, that was Trump's biggest bragging point, right?

 

[nikolai_42]

I'm also of the opinion that the stock market is grossly inflated. But hey, that was Trump's biggest bragging point, right?

Agreed. But notice, also, on whose watch the disconnection really had its biggest advance.

 

[User Name]

Agreed. But notice, also, on whose watch the disconnection really had its biggest advance.

Obviously there was going to be a dip in GDP and S&P sales with the pandemic, but I'm not disagreeing with you. The comedian Bill Hicks was no economist, but he could see that our whole economic system is rigged.

 

[TomO]

Don't forget the awesomecoolneato Housing bubble we are currently inflating....Whoo-Hoo! Party like it's 2009!

 

[Gary K]

I'm not saying we aren't on a roller coaster ride that ultimately results in disaster. But I'm also familiar with the joke that if you ask 10 economists for an opinion you get 11 opinions. I've also seen a number of scare tactics in the past where someone had sure economic evidence of a soon-to-come disaster. Needless to say they are always MUCH better at predicting the past than they are the future.

I'm on board, however, with the idea that there will be a serious monetary crisis (at some point) that will make the Great Depression look easy. That was a given once the Fed was created and given the authority it has. It's just a question of when and how. The fact that I haven't seen other banks follow suit with WF suggests to me that this is probably more about their shady dealings than it is about the ON RRP.

So, you're so involved in chasing truth that you're far more willing to accept your own opinion rather than investigate other ideas. That's the norm around here and on most forums. Very few are willing to actually engage and investigate ideas with an open mind. It seems to me the best way to show something isn't true is to engage the ideas and prove them wrong. But, both left and right reject that approach.

I take it you know very little about Michael Pento. He has made multiple correct predictions since 2007 or 2008. He's been correct the vast majority of the time.

 

[Gary K]

Don't forget the awesomecoolneato Housing bubble we are currently inflating....Whoo-Hoo! Party like it's 2009!

What's even better is the Everything Bubble the fed is creating.

 

[marke]

But surely the sky must be falling. After all, there's a Democrat in the White House! Oh wait...

Dow jumps 440 points to record, rebounding from one-day slide

The Dow rose 0.2% for the week. The S&P 500 and Nasdaq gained 0.4% and 0.4% since Monday, respectively.

www.cnbc.com

This change is only minor compared to what the government fiscal planners have on the table. We have already been introduced to government bail-outs that resulted from the disasters caused by very bad government fiscal policies, but the next step our fiscal gurus are considering to counter the out-of-control government debt is bail-ins. Only morons could possibly think bail-ins of the type proposed will be good for Americans forced to contribute to the forfeiture of their own assets.

http://ag.allegiancegold.com/bailin-dc/

There could be an upcoming banking crisis with record amount of bank loan defaults. It is your money that Banks and Financial Institutions will use for either:
Bail-outs - where you have to pay for it through future taxation, or
Bail-ins - where you pay for it right now as the bank takes some of your deposits
The national debt is skyrocketing beyond recovery point due to Covid-19. The credit worthiness of the U.S. is at risk and the government can’t afford to take on more debt unless it is willing to face imminent insolvency and ultimately bankruptcy. The financial burden to stabilize this enormous debt is too great. As such, bail-ins of the upcoming banks and financial institutions crisis could be extremely likely this time instead.