Jim Sinclair: Entire US Banking System Missed a Bail-in Collapse by a Hair Tuesday!

Jim Sinclair states this morning that the entire US and Western banking system just missed a complete collapse and full bail-in by a hair’s length at the end of the Memorial Day Weekend.

Full details on the US banking system’s narrow miss of a complete systemic collapse and a full banking holiday Tuesday are below:

The entire Western World banking system just missed the need for a bail-in by a hairs length.

The next crisis in finance in North America will be a product of the FASB, the Guardians of Auditing, allowing banks to value OTC derivative paper at whatever the bank wishes. This is a camouflaged black hole loss unstated that Western Banking system deposits could fall into to disappear partially or wholly, made up of your deposits. Washington made moves to override the CFTC, mandating proper valuations which the FASB has run away from. Had the banks been required by the CFTC to value these derivatives at anything resembling a real market (there isn’t any markets for the legacy OTC derivatives of 1991 to 2008), we would have had another banking crisis in the USA on Tuesday after Memorial Day. The USA just missed another banking crisis by a hair’s length. Next time it will be closer. Continue reading