Could the Bank Crisis Spill Over Into Main Street?

[Inside Wall Street with Nomi Prins]( Welcome to Inside Wall Street with Nomi Prins! It’s the only daily newsletter featuring the insights of renowned author and former Wall Street insider, Nomi Prins. Every day, Nomi shines a light on a massive wealth transfer she calls The Great Distortion. That’s the true cause of the permanent disconnect she sees between the markets and the real economy. And she shares ways you can come out ahead, if you know where the money is flowing. You’ll find all Nomi’s Inside Wall Street issues [here](. If you have questions or comments, send Nomi a note anytime [here]( or at feedback@rogueeconomics.com. Could the Bank Crisis Spill Over Into Main Street? By Clint Brewer, Analyst, Rogue Economics With today’s bank panic still unfolding, many can’t help but think about the economic fallout from 2008’s financial crisis… and if 2023 will see a repeat. Back then, a wave of bank failures toppled the economy and sent the unemployment rate soaring to 10%. And during the recession that followed, $2 trillion was wiped from the global economy. With 2023’s bank failures rivaling what occurred during 2008, investors are on edge. Main Street is watching nervously for signs that banks will once again take down the rest of the economy. But for now, the issues plaguing the financial sector appear contained to regional banks. At 3.4%, the unemployment rate is hovering near the lowest levels of the past 60 years. The economy is also chugging along just fine. But there’s a way to know if that’s about to change. One indicator in particular will signal if the bank crisis is about to spill over to Main Street. So today, I’ll discuss what this indicator is… how to read it… and why you should use it to track what’s happening in the broader economy. Recommended Link [“You need at least $100 of this asset – and it’s NOT gold” – Dr. Nomi Prins]( [image]( $100 is all you need… Former Goldman Sachs managing director Dr. Nomi Prins has identified an investment she’s calling ‘the world’s hardest asset’ – and she’s recommending it to friends, family, and followers. She’s talked about it on podcasts… live TV… and in her newest, bestselling book, Permanent Distortion. Dr. Prins says: “This asset has nothing to do with gold or silver, but it has many of the same features to protect your wealth – and preserve your privacy.” As the turbulence in our world grows worse and worse… [Click here now to see what Nomi is recommending before it’s too late.]( -- Tracking Bank Stress The stress felt by banks can quickly spread to the rest of the economy if they decide to cut back on making loans. This means less credit would be available for businesses. [Last week]( I explained how this can choke off funding for new energy projects. The same is true with other businesses across all areas of the economy. If credit isn’t available to fund that new warehouse or build a new factory, that can quickly tip the economy into a recession as business activity slows. Inside Wall Street editor Nomi Prins agrees. As she wrote [recently]( The banks also expect to earn less from their loan businesses this year as customers put their money in Treasurys instead of bank deposits. That means banks have less capital to lend. This, in turn, could cause a credit crunch in the banking system. That’s how a bank crisis morphs into a disaster impacting the entire economy… like what you saw in 2008. The availability and cost of getting access to those funds are tracked with something called financial conditions. When conditions are loose, that means credit is cheap and easy to access. When conditions are tight, it means funds are expensive or hard to obtain. That’s why we track financial conditions… to know if strains are showing up in other areas of the market. A turn for the worse in financial conditions is how the bank crisis moves over to Main Street. Recommended Link [Own a Critical Asset for Amazon’s Business]( [image]( Did you know over 1.6 million Amazon packages are delivered to front porches across the country every single day… (Just take a look in your own neighborhood!) Americans can’t get enough. Yet, by exploiting a strange IRS loophole… A small group of regular Americans have discovered how to collect payouts from a little-known investment that we call “Amazon’s secret royalty program.” The way it works is simple: It’s a way for you to buy and own a critical asset Amazon needs to stay in business… Which means Amazon MUST PAY for the rights to use it! And these payouts can grow up to $28,544 (or more!) every single year... Click below to learn more… The next payout is scheduled for June 13th. [Watch Video Now.]( -- An Early Warning Indicator The Federal Reserve is well aware of the impact that financial conditions have on the economy. And so the Fed’s Chicago district put together their own metric to track it. It’s called the National Financial Conditions Index (NFCI). And it’s made up of 105 different measures of financial activity. The chart below shows this indicator in action. Take a look… [Chart] The black line at zero represents the long-term average for financial conditions. The blue line represents the NFCI going back to the early 2000s. When the blue line is below zero, then financial conditions are looser than average and that tends to be good for the economy. But when the line goes above zero, that means conditions are tightening. And it signals credit is being cut off from businesses. You can see the last time we had a meaningful spike in tighter conditions was ahead of the financial crisis in 2008. Conditions started tightening well before the worst of the recession hit. Right now, conditions remain looser than average. That tells you the problems plaguing the bank sector shouldn’t have a negative impact on the economy just yet. Recommended Link [Millionaire Trader Reveals “Backdoor” Currency Strategy]( [image]( During our currency trading beta test last year, we went 13-for-13. But did you know that it’s also possible to play the currency markets – without investing in currencies directly? There’s a “backdoor” way to access this market – through your existing brokerage account. [Click here for all the details – including the name of the ticker that makes this all possible.]( -- But that can change in a hurry. A big jump above zero, like what happened in early 2008, would be a warning that the troubles facing banks are about to become a problem for Main Street as well. And for investors, there’s another reason to keep an eye on the NFCI. The spike that occurred at the start of 2008 happened before the S&P 500 went on to sell off by over 40%. That’s why we’re keeping a close eye on the NFCI. If it spikes, we’ll know the woes plaguing banks are about to turn into something worse for the economy and the market. We’ll alert you in these pages if we get a warning signal. But you can also track it yourself [here](. And if the NFCI does spike, you’ll know it’s time to be more conservative in your own portfolio allocation. That means shifting allocations away from stocks and into cash. Best regards, Clint Brewer Analyst, Rogue Economics P.S. Nomi is sounding the alarm on what she calls the biggest change to our money since 1971… She found evidence that a small group of powerful people are colluding to virtually “ban” cash – leading to the end of the dollar as we know it. It’s a plan that the Federal Reserve, the White House, and the financial elite are set to enact as banks fail. Pulling your cash out of the bank won’t be possible. But she found one asset that can help you become your own banker – and escape the clutches of this power grab. To learn more, [watch Nomi’s urgent new video presentation right here](. --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Inside Wall Street Feedback). MAILBAG Yesterday, a reader shared their discontent regarding nuclear energy. Carole believes her country is better off nuclear-free, and she doesn’t trust the people pushing otherwise. These readers wrote in with their thoughts… It’s sad that so many people like Carole are still repeating the oil company FUD and propaganda from the 1960s and onward. But it does indicate a big problem for nuclear energy development because a lot of people still believe that propaganda and most likely cannot be dissuaded from their beliefs. On the other hand, windmills and solar cells are not a solution in and of themselves, as we are already seeing grid instability and the rise of a more extreme rationing regime in our power distribution system. Not to mention the rather short lifetime of these investments. All of which makes the argument for nuclear rather fraught. I’m afraid that a lot of people will have to alternately freeze and roast in the dark before certain countries allow large-scale development of nuclear power. Personally, I am planning to install a natgas-powered generator at home and keep my fingers crossed that the government does not destroy the natgas delivery system during the remainder of my lifetime. I currently have smallish positions in URA and URNM, having sold the individual stocks that I previously held. In the past, I rode Paladin Energy up and down, so I’m well aware of company risk in the uranium business. Unfortunately, I did not unload PALAF in 2007 when I should have, but I did get a lesson from the experience. – Bill E. Sounds like Carole has been frightened by myths and the media. It has already been proven that there aren’t enough rare-earth elements (REEs) on planet Earth to produce even 10% of the batteries needed to support human energy needs from solar/wind. But greenies don’t let the facts spoil a good fantasy. They’d rather destroy the earth mining those REEs, using fossil fuels to do so, and using child labor as well. Just to feel good that they can later create "clean" magic energy from the sun. I doubt many of them have physics degrees, understand the laws of thermodynamics, or understand EROEI (Energy Return on Energy Invested). The reality is that nuclear is the ONLY path forward to meet the world’s needs in a clean, cost-effective manner. Smart nations realize this. Even California is now keeping older nuclear plants running longer because it’s the only thing saving them from more frequent brownouts. It’s cheap, clean, and safe. Carole likely isn’t aware that more people have died mining REEs and building batteries and electric motors than have been harmed in all nuclear accidents combined. By 2050, history will show that solar and wind were simply early stepping stones towards the re-emergence of nuclear power as the dominant technology that helps us reduce reliance on fossil fuels. – Anonymous Do you agree with Bill that most people probably can’t be dissuaded from their beliefs against nuclear energy? Will a lot of people “have to alternately freeze and roast in the dark” first? And is the anonymous reader right about solar and wind being “early stepping stones” towards the re-emergence of nuclear power? Lastly, how do you see nuclear resurfacing within the context of our broader economy right now? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Inside Wall Street Feedback). IN CASE YOU MISSED IT… [Market Wizard crushed the market in 2022. What’s he got in store for 2023?]( Market Wizard Larry Benedict crushed the market in 2022… He delivered a perfect track record to his One Ticker Trader readers, going 11-for-11. Previously, he went 20 straight years on Wall Street without a single losing year. And when the market plummeted 37% in 2008, he delivered 23% returns… Now he’s sharing an over-the-shoulder “demo” of his winning strategy in action. He calls it the One Ticker Retirement Plan… And it takes less than 10 seconds to demonstrate. [Watch it 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. 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