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Central banks add fuel to the fire, indiscriminate rate hikes

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Central banks add fuel to the fire, indiscriminate rate hikes

The “dodgy” behavior of the FED and the ECB

I was inspired by this article: “Fed, why is the banking crisis inevitable?” (Money.it) which I recommend reading. Many people, from the world of finance and not, have been predicting that for some time the behavior of the FED and the ECB in matters of monetary policy is not to be recommended. Question: in this period we are witnessing a series of chain factors that could uncover the banking Pandora’s box? What I mean?

READ ALSO: Rates, no truce from the ECB. Lagarde: “The worst is yet to come”

The indiscriminate hike in rates (in search of the mythical 2% of inflation, which is like the phoenix), the bank run in the USA, which has sunk three major banks, house prices which are in clear decline in both continents, industrial buildings that could lose up to 22% of their value, NPLs in portfolio, the collapse of both American and European bonds, not covered by interest SWAPs, insurance for current accounts only, for as far as we are concerned, for only 100 thousand euros, if we then add the “bad management” and the impact of liabilities vs. the assets (Loss & Profit and Balance Sheet), all of which becomes a truly explosive cocktail. It is not my intention to cause alarmism, but as a good analyst I would like, for once, not to be right.

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