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Wednesday afternoon, after the markets had closed, the Federal Reserve released its latest "Stress Test" on the nation's major banks. The Fed likes to release.
The Wall Street Journal sent shock waves through the financial world Saturday night when they reported that the FDIC seized nearly $14 billion in foreign deposits at Silicon Valley Bank in the Cayman Islands last March, mostly from Chinese investment firms, which had been waiting to gain access to their funds. It's not happening. As Pam Martens reported this morning, this will most certainly cause a bank run on all unsecured foreign deposits, which is over $1 trillion in just two banks: JPMorgan Chase and Citigroup’s Citibank. As Mike Shedlock of MishTalk.com reported, the FDIC has now sent a clear message to foreign depositors: You can't trust U.S. Banks. If this news wasn't bad enough, we also have the alleged political posturing going on right now over whether or not Congress is going to raise the U.S. debt limit, or default on some government obligations, like U.S. Treasuries. Asia (Japan and China) holds a vast majority of foreign held U.S. Treasuries, and probabl