What Does The Latest Bank Failure And Bailout Mean?

First Republic Bank failed on 5/1/23 and JP Morgan was selected (of course) by the US government for a sweetheart, can’t lose, make JPM billions deal.

Of course.

If it weren’t for overt corruption, the US government wouldn’t stand for anything at all.

Naturally, this is all wrapped up in the usual weak cover stories such as “This was the best outcome for a tricky situation” and “We’ve taken steps to strengthen the banking system to assure this doesn’t happen again.”

Those are really ignorant rationales because the true cause of these regional bank failures was the Fed’s policies.

Because the Fed decided that it knew best, and because the Fed decided that what was best was money that was priced at zero (see chart below), various financial entities were forced into terrible binds where they had to hold their noses and buy overpriced debt and make underpriced loans that were guaranteed to lose value when the Fed raised interest rates.

Which means these regional bank failures were a matter of policy. Which means the forced acquisition by JP Morgan (against existing concentration rules, suspended or ignored because circumstances!, is a matter of Fed policy.

Welcome to the “you’ll own nothing and be happy” stage of the kleptocracy.

How else can you concentrate all the world’s wealth into a small handful of elites and institutions?

At any rate, this bank “failure” isn’t the last despite what Jamie Dimon said. The damage was done between 2009 and 2022.

Up next, more banks, pensions, endowments, and small and medium-sized businesses.

Become an Insider: These videos are just the beginning of the time-saving research, data, an insight-driven community, and real-time ALERTS you won't get anywhere else. Join today and get access to information you can't live without. Click Here to Join or Upgrade

This is a companion discussion topic for the original entry at https://peakprosperity.com/what-does-the-latest-bank-failure-and-bailout-mean/

What Is The End Game?

I stayed out of the 2005-2007 housing bubble. I built a nice house in 2010 and had to sell it due to a job change. I still do not own a house. I have no idea how this will all shake out.
I think we can all agree that bail-ins are out of the question because “rich” people control the politicians. We are simply heading to a USSR type crisis because our economy’s efficiency has been destroyed by miss-pricing assets and the time value of money.

1 Like

Possible Topic To Cover - Energy Independance.

I have been looking for a good recommendation on becoming more energy independent. There are options online but would love to see how others are putting together their systems. I live in Victoria BC where we do get decent amount of sunshine in the summer but what would Chris’ analytical mind recommend when thinking about putting it together.
I have been also thinking that I should start piecemealing the project together and have a solar panel for my RV. I think the next step is an expandable battery/generator such as Zendure’s base V. Then I could save up and slowly acquire the parts. Appreciate any feedback.

1 Like

I also would like to gain control over my energy needs. I am going to avoid solar and instead focus my efforts on micro-hydro power. A good Pelton wheel generator can turn high head and low flow water into a reliable source of electricity.
The biggest problem with solar is the issue of energy storage. There are no good answers for storing solar power for electricity.
It makes more sense to use solar as a method of powering a thermal battery that can then be used to heat your home during the night hours.



There is a lot of talk about ageing and declining populations. How does that play into all the things you talk about - the 3 Es etc? And how about the west trying to stem that tide by encouraging mass and random migration?
Does the migration perhaps slow down the complications caused by population decline - ie by filling some basic jobs. Then cross fingers and hope that our schools (!) raise their kids to have high skill roles?
We talk of power, wealth and influence rotating from west to east at the moment (I think that’s the big shift of our time) but how might that be impacted by population decline (eg in China and Russia) vs the west declining/encouraging migration.
There are too many moving pieces for me to make sense of if I’m honest. Though I suspect that all roads lead to currency and stock and properity and complexity collapse/reduction. Exactly how we get there might be chaotic and hard to put good timelines and predictions on.

1 Like


Surprise Cris, You missed the story. JPMORGAN was short selling the very bank “it was helping” and just bought?


And how might demographics and recessions and everything else filter into energy and commodity prices - and how we might invest.
It is all well and good us saying “buy hard assets and grow food” but there is a limit to how effective that is in the scheme of things.
So - I agree that real assets like energy and commodities are valuable. But will companies and their shares (stocks) get hit by recession, ESG grifts, interest rates, demographics, governments etc etc = we get nothing = you lose, good day, sir. Will paper (ie CME futures) get manipulated and eventually get declared invalid due to “force majeure” or the like. There is a lot of financial engineering/scope for dishonesty between these real assets and us. Or just even that their profits and EPS could easily decline in a recession, especially as earnings and earnings multiples have been rising over the years since the GFE.
Or I buy property - but the whole of the west seems to be determined to make owning property as an investment to be unprofitable due to rules and regs and tenant protections. Quite frankly, tenants don’t appeal at all. People/tenants just aren’t house trained these days/don’t have basic “house sense”. A tenant will happily watch a dripping joint rot through a floor before they think they might need to mention it.
Farmland doesn’t attract annual taxes (in the UK) but it can be costly. So you have to get a farmer to work it and it is (deliberately) hard to make money growing food or rearing meat = the land can soon became a liability where you have to mend the fences and don’t get any return. Maybe it will become more valuable if things really go sideways and then you’ll have a queue of people wanting a little bit of land for chickens or veg or whatever, but that will take a huge disaster).
I have coins, but having loads feels a bit daft. It’s putting a bit too much in the “pessimist pot” and if things go that bad, I likely won’t be around to make use of the coins anyway.
I’m in a bit of a bind, if I’m honest. A fortunate one, I admit, where I have money to deploy but I see problems with anything I look at. A feature of any “risk asset” I’m sure. I’m not expecting any solid answers, I’m just musing on this and if it leads to any content or discussion from anyone, that would be great. I might post something on the boards because I doubt I’m the only one wondering how to deploy money.
Other than that, my work is likely my best inflation hedge. If things really go bad, I have my bees and mead and a still!

1 Like

Joe Ellis

Since you asked I would like to know what is really happening in Ukraine?

1 Like

The War Within

I’ve been following Michael Yon's reports on the Darien Gap (somewhat to my own mental detriment, ie if the Chinese infiltrate the US, what good is all I’ve worked so hard to put into place?); any insight you can share?
Also, what’s the latest on the influx of migrants being flown into the US (not sure if other countries are facing this)?


Re Cia Director Burns

While listening to today’s National Citizen’s Inquiry, there was an interesting quote during the introduction: “it’s too stupid to be stupid”. That says it all with respect to Burns saying he did not know who Epstein was. Ya right… ???‍♀️?


best boots on the ground description of what worked in a collapse ive have yet to encounter… its not theory, its history, Id also look at other countries that went thru similar wise in investments/businesses survived and which didn’t “Venezuela/ Cuba/ Russia 1998”


Look into the Electrodacus system. He matches the panels to the battery (avoiding a raft of fancy electronics) and can then divert the excess power to heating (being as simple a specific lengths of wire).

Add Me To The List Of People Wanting To See Coverage Of Personal Energy Independence

I too would like to see some discussion of energy independence…in as many forms as possible. Rural and urban options, different pricepoints, in different climates, etcetera.
And maybe even some creative methods for conservation.


Just an Engineers offering. You get three times the energy in thermal Solar than Electric per square metre of panel. First thing to do is look at your actual energy needs, heating lighting, and the fridge, for example.

I followed him back in 2009 and he has a lot of good things to say. I have not read his book but he does\did talk about securing your home. Do’s and Do not’s.

1 Like

“It’s the stupid, stupid!”
~ Bill Clinton, probably



Banks are presumably buying those bonds with their reserves which are already leveraged?

Suggestions For Topics - Resiliency

Possibly you could do short, 10 minute videos on resiliency, specifically how you are “prepping”? I live in rural NW Ohio on three acres and as a hobby over the last 10 years, I’ve been prepping for a total collapse of our money and/or electrical grid. Currently I estimate that I could live “off-grid” for two years, food, heat, water, septic, medicine, limited electricity via solar. I recognize that this might be a limited topic for your audience, but I can tell you are investing time and money on your “Honey Badger Farm” and would be appreciative if you would share some of your successes with us. I am most envious that your property has a spring/artesian well.


Major Crisis: Repo Rates Sky Rocket, Dealers & Banks In Trouble


The problem is they’ve become so sure of themselves that when they are challenged they look you in the eye and say, “So? What are YOU going to do about it?” They have no fear that any law enforcement action will be taken against them; no fear of MSM exposure; and no fear of being voted out.