Sternlicht said he expects U.S. regional and community banks to begin to fail one or two each week. There are over 4,000 of those banks around the U.S.
The main reason for this, according to Sternlicht, is that the Federal Reserve has been raising interest rates and now it will not start cutting them down – that was announced during the recent FOMC meeting. Therefore, among those who will “get whacked” will be the real estate sector and local banks working with it. Similarly to 2009, real estate loans are likely to suffer now, the billionaire expects.
Overall, experts believe that currently the U.S. Fed Reserve is stuck between allowing a banking crisis (if they keep the rates high) and permitting inflation to grow stronger and out of control (if they begin to loosen interest rates). Therefore, high rates will keep inflation more or less tamed while crucial sectors of the economy, which have a strong dependency on loans, are unable to survive in a higher-rate environment, even if they seem strong enough for that at first glance.
Max Keiser believes that this is going “exactly as Satoshi planned it.”
Kiyosaki advocated investing in Bitcoin, as well as in physical gold and silver, predicting that the prices of these assets are going to skyrocket in the near future. In particular, Kiyosaki tweeted this year that he expects BTC to hit $100,000 by September.
Keiser reckons that, mostly, Kiyosaki has been right about the U.S. economy heading downhill at a fast pace.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
