With hindsight, there were warning signs ahead of the collapse of Silicon Valley Bank, missed not only by investors, but by bank regulators. The recent failures of Silicon Valley Bank and Signature Bank have sparked concerns about the possibility of other regional banks facing similar challenges. REBECCA NOBLE/GETTY IMAGES
‘Rich Dad Poor Dad’ author Robert Kiyosaki recently cautioned his followers that the banking crisis is still ongoing and is far from resolved.
A lock is seen on a gate on the exterior of the U.S. Department of Treasury building, as they join other government financial institutions to bail out Silicon Valley Bank’s account holders after Silicon Valley Bank collapsed on March 13, 2023. Washington, DC. CHIP SOMODEVILLA/GETTY IMAGES
In a recent tweet on Thursday, Kiyosaki said
More banks about to fail. Rumor is Mortgage giant Loan Depot is on the ropes. Regional banks and mortgage companies are falling. Please be careful. I would not believe anything Pres Biden, Fed Chairman Powell or Sec Treasury Yellin say. Think for yourself.
Expressing his concerns, Kiyosaki mentioned the vulnerability of mortgage companies, notably that of Loan Depot, a prominent player in the industry.
The announcement by SVB spooked investors and clients, sparking a run on deposits. On March 10 the bank collapsed – the biggest US banking failure since the 2008 financial crisis – prompting regulators to seize control the same day. PATRICK T. FALLON/GETTY IMAGES
The author and entrepreneur said that rumors suggest that Loan Depot is facing significant challenges, and advised his followers to exercise caution and be mindful of the situation.
Responding to Kiyosaki’s tweet, stock broker Peter Schiff said that “the Fed and Federal policy are the reasons the U.S. banking system is now insolvent.”
Correct, but this was the inevitable consequence of obvious monetary and fiscal policy mistakes made over the years. Fed and Federal policy are the reasons the U.S. banking system is now insolvent, and why this financial crisis will be much worse than the last one they created.
This isn’t the first time Kiyosaki has warned about the collapse of the banking sector.
Earlier in March, Kiyosaki, who predicted the 2008 collapse of Lehman Brothers, pointed to the bond market as a primary concern and emphasized its significant size, which surpassed that of the stock market.
“The bond market poses the greatest challenge,” Kiyosaki said, underlining the importance of the sector in the broader financial landscape.
Kiyosaki previously said that the poor bond market could be troublesome for pensions and investment income for older generations.
In light of increasing inflation and comments on the fractious argument claim of the Federal Reserve’s unrestricted money printing Kiyosaki has advised investors to acquire gold, silver and Bitcoin over the past few years.
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