The Endless US Banking Crisis: Winners, Losers, and Collapses.

The recent bailout-buyout of First Republic by JP Morgan has led to sell-offs in multiple bank stocks, with markets finally waking up to the fact that a large portion of the banking system is potentially insolvent. The banking system is insolvent due to reckless central bank policy, including quantitative easing (QE), which drove interest rates down to record lows and led to extreme overpricing in asset markets. The losses have spooked depositors, who are now heading for the exit, and the recent use of bailouts and assisted buyouts may become increasingly difficult as more banks come under pressure. The only solution then will be to guarantee all deposits in the banking system, which could lead to a partial socialisation of the banking system.