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Billionaire Predicts: We’re Going to See One Bank Failure a Week!

EDITOR'S NOTES

Do you think your bank deposits are safe? Well, here’s something to consider. Real estate mogul Barry Sternlicht, CEO of Starwood Capital, predicts widespread U.S. bank failures due to high interest rates and inflation. Speaking to CNBC, he warned that the U.S. could see a bank failure every week, with over 4,000 regional and community banks at serious risk.  Sternlicht’s concerns are tied to the US debt crisis and the Federal Reserve’s reluctance to cut interest rates soon, which could exacerbate the struggles of these banks and paint a grim outlook for the U.S. economy. As an aside, it may be wise to consider converting some of your savings to gold and store it in a private depository to protect your wealth. This way, the value of your money won’t erode, and none of your gold holding can be converted into bank “bail-ins” in the case of a banking collapse.

With the BRICS bloc embracing de-dollarization and encouraging a global economic shift, one notable billionaire has made a major US bank failure prediction. Indeed, real estate investment mogul and CEO of $115 billion Starwood Capital, Barry Sternlicht, has urged preparation for widespread failures in the coming year.

Speaking to CNBC, Sternlicht predicted that the United States would witness one bank failure every week. Specifically, he stated that the more than 4,000 regional and community banks in the country would be at risk due to high interest rates and inflation. All the while, the US debt crisis is nearing, with the greenback facing lessening prevalence internationally.

Billionaire Predicts Major US Bank Failures in 2024

Over the last several years, the increasing relevance of the BRICS alliance has been a massive geopolitical development. It has seen the global south get a renewed voice amid the collective’s pursuit of a multipolar world. However, their initiatives have greatly affected the West, with the US dollar being abandoned through BRICS trade activity throughout the year.

However, that BRICS action isn’t all that should be concerning, as a billionaire has made a major US bank failure prediction. Additionally, the aforementioned Barry Sternlicht has forecasted a host of bank failures to take place in the coming year.

“I think people are looking for these cracks, and you’re going to see the cracks develop now. You’re going to see a regional bank fail every day, or not—every week, maybe two a week,” Sternlicht said in an interview.

S&P Downgrades First Republic Bank Rating to “Junk”
Source: The Hill

That prognosis is certainly harrowing, especially for the ramifications it could have on the US economy. Last year, First Republic Bank collapsed, causing massive worry among citizens. That bank had more than $6 billion in assets, with another $4 billion seized by the government.

Subsequently, Sternlicht’s prediction would only magnify that reality. Indeed, his expectation is connected to high interest rates and inflation concerns. Moreover, the Federal Reserve has shown no signs of cutting interest rates anytime soon.

Although the Central Bank has said it will cut rates in 2024, they have not settled on a timetable. Therefore, these community banks could be set to struggle sooner rather than later. Additionally, increased federal debt and US dollar concerns will only enhance a rather grim outlook for the United States heading into a critical presidential election this year.

This article originally appeared on Watcher.Guru

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