Fund Manager Warns Another Banking Crisis May Be Imminent- “Something Nasty is Going on Behind the Scenes”

Something nasty is going on behind the scenes in the financial system that is not yet apparent.
Treasury futures opened in the early evening and the 10-yr traded down to 2.25%
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Something has the market incredibly spooked and I find it interesting that the U.S. Treasury Secretary and the UK’s equivalent will be running a big bank fail simulation test next week.
The movement in 10-yr Treasury yields AND the blatant smashing of the gold price since mid-July is exactly what occurred in 2008 before Lehman collapsed.

Is another TBTF mega bank on the brink of insolvency??

by PM Fund Manager Dave Kranzler, Investment Research Dynamics:

Yesterday I sent an email around to some colleagues in which I suggested that something nasty is going on behind the scenes in the financial system that is not yet apparent. The bond market was closed yesterday but Treasury futures opened in the early evening and the 10-yr traded down to 2.25%. This time last year the yield was 2.75%. Despite the jump in the SPX today, which always happens on POMO Tuesday, the 10-yr is now down to 2.23%.

The “improving economy/housing market” does not hold up when the yield on the 10 yr is collapsing like this. This is not a short-squeeze.

Something has the market incredibly spooked and I find it interesting that the U.S. Treasury Secretary and the UK’s equivalent will be running a big bank fail simulation test next week. The movement in 10-yr Treasury yields AND the blatant smashing of the gold price since mid-July is exactly what occurred in 2008 before Lehman collapsed.

A friend of mine thinks it could be Citicorp who’s in trouble right now. Interestingly, Jack Lew is a former Citicorp crook who was inserted in the Treasury Secretary seat. Recall that Henry Paulson – former Goldman CEO – was put in that seat ahead of Goldman Sachs being bailed out in 2008. The parallels with 2008 going on right now are a bit spooky. But let the population worry about an Islamic “boogie man” and a few cases of Ebola so they don’t see what’s really developing.

The hidden problem developing could well be this: Greek bond and stock prices plunge.

If Greece collapses, it will light the fuse that will trigger a bigger credit default swap counterparty derivatives explosion than occurred in 2008. It’s no coincidence that the big banks just signed a new derivatives agreement that prevents any bank from unilaterally grabbing collateral from a counterparty who defaults: LINK.

This agreement does not end the “Too Big To Fail” era like that article claims. This allows the Central Banks to determine which banks get to fail and which banks get saved when the derivatives bombs start to detonate. This essentially legally ratifies the process that determined the fate of Lehman and Bear Stearns and saved Goldman, JPM and Citicorp.

Nothing happens by coincidence in a system that is tightly controlled by a central organization. In this case, the Fed/ECB/U.S. Government.

Source: Silver Doctors