The financial system in the United States has been quite shaken by the recent collapse of Silicon Valley Bank and Silvergate Bank. Observing the events, according to some players in the sector, a worse scenario might occur in the coming days.
Robert Kiyosaki, author of the book Rich Dad Poor Dad, warns that a third lender will follow the example of the aforementioned banks. The writer emphasized on Twitter on Friday that this situation will have a positive effect on the value of precious metals. Furthermore, according to him, his prediction is in line with his prediction of the collapse of Lehman Brothers in 2008.
“Two major banks have collapsed and a third is poised to do so. Buy real gold and silver coins now. When the third bank time comes, the price of gold and silver will skyrocket. In 2008, I predicted the collapse of Lehman days before on CNN. If you want proof, go to RICH DAD .com.” said Kiyosaki.
Crisis in the banking sector
The businessman’s warning of a third bank collapse comes as speculation mounts over the future of another crypto-friendly investment bank, Credit Suisse. The bank recently announced the delay of its annual report following a call from the SEC regarding the lender’s previous cash flow statements.
On the other hand, cryptoskeptic economist Peter Schiff came up with a worse scenario than Kiyosaki. According to him, due to the prevailing uncertainty in the current situation, the American banking system may face a much bigger collapse compared to the 2008 crisis. Schiff warns that if mass payouts were to occur, they would result in significant problems.
“The US banking system is on the brink of a much bigger collapse than the one in 2008. Banks hold long-term paper at extremely low interest rates. They cannot compete with short-term government bonds. Mass payouts will result in a wave of bank failures by depositors seeking higher returns.” the economist stated.
The collapse of Silvergate Bank and Silicon Valley Bank, which are major lenders to crypto companies, also significantly affected the crypto industry. Circle, the USDC stablecoin issuer, has revealed that it has kept some of its reserves in Silicon Valley. At the time of writing, USDC has depreciated once morest the dollar and is hovering around $0.92.
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