The Bank Run…In a worrying sign for the banks, JPM just reported that it will be closing 1,000 Chase branches out of the more than 5,100 across the US. This comes just one day after Treasury Secretary Mnuchin insisted that no banks were considering closures, “Law and Order Are About to Break Down“. Banks are about to drown in an ocean of defaults There’s $250 TRILLION in global debt right now– mortgages, credit card debt, business loans, government debt, etc. And banks own a large portion of that debt. This virus crisis is going to trigger a wave of defaults from consumers, businesses, and even governments. Think about it: tourism alone makes up 10% of global GDP. Revenue in that entire sector– hotels, airlines, cruise ships, etc. have collapsed, and many of those companies aren’t going to survive. The crash … Continue reading Banks Are Going to Drown in an Ocean of Defaults