The Wall Street analyst and investor who called the 2008 Lehman Brothers’ collapse has revealed what bank he thinks will hit insolvency next amid Silicon Valley Bank (SVB) closure shockwaves.
“The problem is the bond market, and my prediction, I called Lehman Brothers years ago, and I think the next bank to go is Credit Suisse,” the Rich Dad Company co-founder Robert Kiyosaki said on “Cavuto: Coast to Coast” Monday, “because the bond market is crashing.”
Just days after SVB, the California-based bank primarily used by tech industry companies and startups, declared bankruptcy, New York-based Signature Bank announced it would be shutting down to protect consumers and the financial system.
Similarly to SVB, Signature Bank was popular among crypto companies. The institution provided deposit services for its clients’ digital assets but did not make loans collateralized by them.
The closure announcement came in a joint statement from the U.S. Treasury Department, the Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC). The regulators said SVB clients will have access to their money starting Monday, at no expense to the American taxpayer. Similar recourse will soon be provided to Signature Bank clients, regulators also claimed.
Kiyosaki further explained how the bond market – the economy’s “biggest problem” – will put the U.S. in “serious trouble” as he expects the American dollar to weaken.
“The U.S. dollar is losing its homogeny in the world right now. So they’re going to print more and more and more of this,” the expert said while holding up a dollar bill, “trying to keep this thing from sinking.”
He further expressed concern over pension plans and individual retirement accounts (IRAs) in the current market environment, adding the American taxpayer will be hit hardest by bank bailouts.
“My generation, the boomers, we’re trying to retire. So this is the perfect storm in many ways,” Kiyosaki said. “Like I said, again, I think the Fed and the FDIC signaled they’re going to print again, which makes stocks good. But this little silver coin here is still the best, it’s 35 bucks, so I reckon anybody can afford $35, and I’m concerned about Credit Suisse.”
Amid hyperinflation and printing more money, Kiyosaki advised exploring or buying into silver and gold investments during a volatile market.
“The Fed and the FDIC is signaling hyperinflation, which makes gold and silver even better because this thing here is trash. They’re going to spread more and more of this fake money, and that’s what the Fed and the FDIC is signaling: we’re going to print as much of this as possible to keep the crash from accelerating. But they’re the guys who are causing it,” the market expert said.
On “Mornings with Maria,” best-selling author and The Bear Traps Report founder Larry McDonald warned of similarities between the SVB collapse and Lehman Brothers, which Kiyosaki originally forecasted.
“And what I saw inside of Lehman and what we just learned over the weekend as to the way this bank was managing itself,” the expert continued, “it’s just bloodcurdling irresponsibility and the Fed enabled it. And then when they juiced rates up higher, they’re essentially just blowing up these bad actors.”
[Written in collaboration with other media outlets with information from the following sources]
