Readers of this web site may recall that on December 23, we reported that Treasury Secretary Steve Mnuchin took time off ON A SUNDAY, from his vacation in Cabo San Lucas, Mexico, to call the CEO's of America's largest banks to make certain they were not having any trouble. Now, the Office of the Comptroller of the Currency and - of all entities -- The FDIC have made similar, unsolicited announcements that everything is fine with the banks.
(Hal Turner Reminder: When the Government tells you not to panic . . . THAT'S WHEN YOU RUN!)
Nobody asked Secretary Mnuchin if the banks were having trouble. Nobody even hinted at it. So why did Mnuchin do those calls, and why did the US Treasury issue a PRESS RELEASE on a Sunday saying everything was OK? (Story Here).
Wednesday, the Office of the Comptroller of the Currency issued a statement (again, that no one asked about) saying "the federal banking system ... is strong with capital and liquidity near historical highs and improved earnings and risk management. From this strength, the federal banking system is well positioned to manage more adverse market conditions.” HMMMMMMMM.
Thursday, the FDIC chimed-in when Chairman Jelena McWilliams told Reuters that banking regulators had begun a review of the so-called CAMELS rating system used to assess the health of the nation's banks.
"Frankly, recent market movements have not given us any reason to be concerned," she said in an interview. "Banks are well capitalized. Actually, they are superbly well capitalized at this point in time.
"Nothing that happened in December gave us concern"
And with this odd warning coming out of the blue, stocks promptly faded back near session lows Thursday as traders are once again left to wonder just why in the span of under 10 days we have gotten repeat assurances from banks, the OCC and the FDIC that "banks are fine" and "well positioned" for a crisis, when nobody was wondering the opposite in the first place.
In any case, a few more "assurances" such as this one - perhaps the Plunge Protection Team should address the nation next - and the investing world will observe first hand just how prepared for a crisis US banks truly are.
Hal Turner Suggestion: Have some CASH in your possession. Not to pay bills, but to SURVIVE on if things take a sudden, dramatic turn.
To heck with paying bills under that scenario, you'll want CASH in case the banks shut down for a couple weeks, so you can buy food, fuel and such. No one in the country of Greece thought THEIR banks would shut for two months a couple short years ago - but they did. Don't be caught without CASH because if the banks shut for a "crisis" your credit and debit cards won't work, and businesses will not take checks. Have cash or starve.
I'm not certain WHY these "assurances" are coming out from government, but to me . . . it's reason to actually start worrying. Personally, I think something wicked this way comes.