Arthur Hayes suggests impending banking system crisis in the US

03/10/2023 01:37 • Daily Digest • 155 views

According to reports, Arthur Hayes, founder of BitMEX, tweeted, “Powell may have pierced the banking system crisis in the United States. In 2008, the bank’s non-performing credit portfolio — also known as the subprime crisis. In 2023, the bank’s long-term bond portfolio, such as UST and MBS? If it falls sharply, please remember that in March 2020, it fell sharply, rescued the market, and then rose sharply!? I am ready.”

Founder of BitMEX: Powell may have pierced the banking system crisis in the United States

Analysis based on this information:

The founder of BitMEX, Arthur Hayes, has tweeted about the possibility of a banking system crisis in the United States. He suggests that the crisis may be related to the non-performing credit portfolio of banks, similar to the subprime crisis of 2008. However, he also warns that it could be related to the long-term bond portfolio, such as UST and MBS, which could sharply fall and affect the market. This tweet has garnered significant attention from observers, signaling a possible concern.

Hayes recalls the rescue of the market in March 2020, and the sharp rise afterward. He seems confident and prepared for the potential future scenario, but his tweet has sparked discussion among experts and analysts about the state of the banking system in the US.

The subprime crisis was a result of banks lending to high-risk borrowers who were likely to default. The banks then packaged these risky loans into complex financial instruments known as Collateralized Debt Obligations (CDOs) and sold them to investors. When the housing market crashed, these CDOs became worthless, leading to the 2008 financial crisis.

The long-term bond portfolio, on the other hand, is made up of bonds with a maturity of ten years or more. UST refers to US Treasury bonds, while MBS refers to Mortgage-Backed Securities. These long-term bonds are typically low-risk and will provide a steady income stream. However, Hayes’ warning suggests that the market for these bonds may suffer due to the current economic climate.

In conclusion, Arthur Hayes’ tweet points to a potential crisis in the US banking system related to non-performing credit portfolios or long-term bond portfolios. While his predictions may not come to fruition, it is still a signal to experts and investors to be cautious and consider the potential risk of investments. The fallout from the 2008 crisis is still evident in today’s economic landscape, and it is essential to be vigilant with financial planning and risk management.

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Arthur Hayes suggests impending banking system crisis in the US

Founder of BitMEX: Powell may have pierced the banking system crisis in the United States

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