Uncertainty in the Banking Sector Is Worsening the Energy Crisis – Here’s What It Means for Your Money

[Inside Wall Street with Nomi Prins]( In the weeks ahead, a new bill titled S.1111 is about to flood a specific corner of the energy sector – known as “SMR” – with $4 trillion. This new energy legislation is about to thrust the secretive energy tech into the commercial realm… And onto the front page of every major news outlet in the country. By then, it will be too late for most investors to profit. Nomi spoke with at least a dozen government insiders. And with record-low fuel reserves… and natural disasters pushing our energy grid to the brink… America is ready for “SMR.” She found a way to play this trend for just $2 – and it could become the highest returning stock of her career. She calls it “The Next Exxon” for reasons that became clear in a special briefing she hosted on May 10. If you didn’t attend, and you still want to get in on this incredible opportunity, [you can catch the replay by clicking here](. Make sure you do it soon, though, before it’s taken down by her publisher. Maria’s Note: Maria Bonaventura here, senior managing editor of Inside Wall Street with Nomi Prins. To kickstart the week, we’re handing the reins to our analyst and investing expert Clint Brewer. Clint brings nearly 20 years of investment industry experience. That includes providing research for some of the largest institutions in the world, including Fidelity, Capital Group, and Citadel. He managed more than $2 billion in assets by combining quantitative, fundamental, and technical disciplines. He also led a fund recognized by U.S. News & World Report in 2019 as the No. 1 fund in its category of tactical allocation. Recently, the banking sector went up in flames after Silicon Valley Bank (SVB) and most recently, First Republic Bank, collapsed. So today, Clint will talk about how turmoil in the banking sector can trigger a crisis in another sector in the markets… But if you know how to position yourself, there’s a way you can profit. Here’s Clint… --------------------------------------------------------------- Uncertainty in the Banking Sector Is Worsening the Energy Crisis – Here’s What It Means for Your Money By Clint Brewer, Analyst, Rogue Economics This year, in less than two months, the U.S. witnessed three of its four largest bank failures in history. It cost a total of $548 billion in assets. That’s more than the losses suffered during the 2008 financial crisis. Back then, banks collectively lost $373 billion in assets. But while investors guess which bank could be the next to go, they’re missing how the turmoil in the banking sector could ignite another crisis… this time in the energy sector. It doesn’t matter whether you’re talking about renewables or fossil fuels. Any new energy project requires large amounts of funding to get off the ground. Just last year, $2.4 trillion was deployed in new energy investments. And $673 billion in that financing came from banks. That’s why the cost and availability of credit play a key role in funding energy projects. And it’s why the uncertainty in the banking sector could intensify an energy crisis. So today, I’ll explain how the recent turmoil in the financial world can impact the future of energy. But if you position yourself correctly in the energy markets, you can turn this crisis into an opportunity… Recommended Link [Final stage before digital money]( [image]( The end is near… Our financial system is about to be transformed in a way that would’ve been unthinkable just a few years ago. And almost nobody is prepared for the chaos that follows. According to Bank of America, this overhaul is imminent – And Dr. Nomi Prins says the final stage begins in July, with the rollout of the FedNow system. To show you everything you need to know about the FedNow system – and to help you prepare – Dr. Prins has recorded a free presentation with all the details. It’s controversial, but Nomi’s interview is a must-watch for anyone with more than $2,500 in an American bank or retirement fund. [Click here to find out what you need to do to prepare for this historic transformation.]( -- Lending Standards Are Tighter Since March of last year, the Federal Reserve has hiked interest rates 10 times. The most recent hike came on May 3, when the Fed raised rates by another 0.25%. [The Fed is approaching Stage 2]( of what Inside Wall Street editor Nomi Prins calls its three-stage pivot – or a pause in rate hikes. Although, that does not mean the previous hikes will stop affecting the markets. In fact, rate hikes take time to ripple through the economy. And so far, they’ve affected banks in two major ways… First, we’re seeing a massive exodus from banks that are refusing to boost rates paid to depositors. In other words, customers are fleeing banks to receive better returns on their deposits elsewhere – like in money market funds. Second, when interest rates rise, bond prices fall. This is basic bond math. As a result, bonds held in bank reserves are losing value. To counter this issue, banks are taking great measures to preserve their precious capital. Part of that includes limiting lending activity. This, in turn, makes fewer funds available for new energy projects. But stricter lending standards aren’t something new. You can track how loan officers at domestic banks have tightened or loosened the standards for loans over the years. Take a look at the chart below… [Chart] Since the Federal Reserve started hiking rates in 2022, banks have tightened standards in commercial and industrial loans. This is indicated by the blue line moving higher. In simpler terms, banks are becoming more selective about making loans to businesses. So there will be less money available to fund new projects. With interest rate hikes, funding was already getting more difficult. Now that the banking crisis is underway, lending is set to take a further hit. We’ll start seeing less funds available for both renewable and fossil fuels projects. Here’s why that can compound an energy crisis… Recommended Link [Thousands a month ain’t bad…]( [image]( “What if I told you that you could make $3,173 a month... or more based on your investment size... even in this crazy market? I’m not saying it’s possible... I’m telling you that my readers already have access to this kind of income. Now, you can acquire it as well. If you’re like most people, you’re concerned that the market will get worse. And if that’s the case, you’ll want to obtain my strategy and research right now. My service is designed to help you sleep well at night in all market conditions. I’ll explain everything [right here]( – including how to access my research.” – Brad Thomas [Click for details here.]( -- Funding for Energy Projects Is Drying Up Investment in new energy supply is already running low to meet future demand. We talked about this in earlier essays about the [global energy crisis]( and the [end of the shale revolution](. We said that investment in new energy projects is on a downward trend. Part of that has to do with corporations pouring cash into dividends and share buybacks, instead of spending on new initiatives. For example, spending on new oil and gas projects is at the lowest levels in nearly 20 years. Instead, oil firms are focusing their capital to lift stock prices. This keeps the price of energy high. And the more expensive the supply of energy is, the more profitable these companies are. It’s also why there’s been a massive push into renewable energy. Now that there are fewer developments in oil and gas, we need new sources of energy. Nomi has talked a lot about ["New Energy”]( throughout these pages. It’s one sector receiving bipartisan support in Congress. For Democrats, clean energy is key for environmental safety. For Republicans, renewable energy can lower future energy costs for rural communities. So overall, the trend for clean and sustainable energy sources is growing in the U.S. But following the closure of Silicon Valley Bank (SVB), we could see renewables take a hit. Recommended Link [Sell Every Stock Except ONE (ticker revealed)]( [image]( Jeff Clark predicted the crashes of 2008, 2020, & 2022 – helping his readers dodge huge losses. He then helped double his readers’ money 13 TIMES in the last year alone… But after watching his OWN 23-year-old soon lose -60% in risky crypto & tech stocks… Jeff is finally coming forward with his biggest WARNING yet. Jeff says: “Sell Your Stocks BEFORE The Stock Shock!” [Click Here to See Jeff’s New Warning.]( P.S. – Jeff refuses to watch his own son lose any more money in risky investments. So, he is rolling the camera to help him win back all his losses – and then some – [with just ONE ticker.]( -- That’s because SVB was the sixth-largest lender to the clean energy sector. In 2022, SVB allocated $1.2 billion to renewable energy projects. The bank also committed $5 billion in renewable energy financing over the next four years. With SVB underwater, the sector now has less funding available. And less funding means fewer projects to support the growth of clean energy in America. Throw in a credit crunch spurred by recent bank failures, and the outlook for tight energy supplies gets even worse. So while a sense of calm has recently returned to the energy markets, you shouldn’t let your guard down. Bank failures threaten a new phase of tight energy supplies and price volatility. That means being selective about your energy investments. For now, avoid investing in energy companies that rely on outside sources of funding – such as banks. Also, avoid energy companies with large debt maturities due this year. Instead, pick ones that generate enough free cash flow to help fund their own projects. Best regards, Clint Brewer Analyst, Rogue Economics P.S. Before you buy another energy stock, you’ll want to hear what Nomi had to say at [her urgent Power Shift 2023 briefing]( last week. She highlighted an energy company with the risk-reward stacked in its favor… It promises to make early investors as much as 20x their money in the long run. That’s because this company is the only one in America with a federal license to produce an energy technology called “SMR.” SMR is a new, cost-effective way to produce energy. It’s two times more powerful than oil and three times more powerful than coal. It’s also cleaner than fossil fuels. The company has government backing. It received $1.4 billion in grants from the Department of Energy. So with support from both sides of the aisle, this company – and SMR – is set to trigger a megatrend. And you can get in with as little as $2 a share. That’s why Nomi hosted a special briefing to uncover all the details about SMR… and why it’s finally being released into the commercial sector. Thousands of your fellow readers tuned in to find out more about it. If you missed it, you can still catch the replay by [clicking here](. But make sure to do so before Nomi’s publisher takes it down. --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Inside Wall Street Feedback). MAILBAG Have you seen Nomi’s energy briefing? What are your thoughts on SMR? Do you believe there are other ways the U.S. can ensure a steadier supply of energy? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Inside Wall Street Feedback). IN CASE YOU MISSED IT… [Market Wizard Who Accurately Predicted 2022 Market Collapse Has Shocking New Forecast]( He predicted the 2020 crash a month before it happened… He predicted the 2022 collapse at the beginning of last year… And now, he’s issuing a brand-new warning – along with a unique solution. [Details here.]( [image]( [Rogue Economincs]( Rogue Economics 55 NE 5th Avenue, Delray Beach, FL 33483 [www.rogueeconomics.com]( [Tweet]( [TWITTER]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Rogue Economics welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. 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