Bank Runs Quietly Continue to Increase Where Depositors Cannot Withdraw Their Funds
While we have not seen a total collapse of the worldwide financial system yet, bank runs that began in 2022 with the collapse of FTX and the $billions that were lost when depositors were not able to withdraw their funds, continue to happen here in 2023, although they do not get headline news coverage. Last week, Pam Martens, writing for Wallstreet on Parade, reported that bank runs were happening at Silvergate Bank, a U.S. FDIC insured bank. Credit Suisse, the second largest bank in Switzerland, which saw bank runs begin last fall, continues to see a mass exodus of depositors as its stock continues to fall here in 2023. It was also reported last week that Blackstone had defaulted on a $562 million bond, and was blocking investors from cashing out their investments at its $71 billion real estate income trust (BREIT). Unfortunately, this is probably just the tip of the iceberg in terms of bank failures and bank runs that await depositors, and I am not the only one saying that, as the U.S. and many European countries are now preparing for bank runs.











