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Ripple Effect

The Banking Crisis That Was

Loading ...Addison Wiggin

October 17, 2025 • 1 minute, 37 second read


Banks

The Banking Crisis That Was

Three of the largest five bank failures in US history happened between March and May of 2023: Silicon Valley, Signature and First Republic.

Most investors are barely aware. The collapse in regional banking was quickly papered over by a Federal Reserve program to buy the bad bonds at face value.

A full-blown crisis was narrowly averted, but it didn’t go away.

Yesterday, Zions Bancorporation and Western Alliance Bank dropped 13% and 10% respectively, dragging the S&P 500 down with them.

In pre-market trade this morning, the broader banking sector also got whacked. JP Morgan was down 1.5%, while Citi fell 1.9% and Bank of America was down 2.9%. In Europe, meanwhile, the regional Stoxx Banking Index fell almost 3%.

The Federal Reserve stopped tracking “unrealized losses” at regional banks in 2022. But occasionally, a snippet of data will come to light, like this piece from the FDIC earlier this year:

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America’s regional banks are sitting on substantial losses (Source: FDIC)

For individual investors, yesterday’s headline selloffs are worth paying attention to. In a credit crisis, banks go first.

~ Addison

P.S. “The private credit market is showing signs of cracking too,” notes Andrew Packer. The popular alternative asset class has notoriously opaque reporting requirements. Andrew digs into private credit in the October Grey Swan Bulletin – which will hit members’ inboxes (as soon as Addison gets his lead on Anduril and Palmer Luckey written!)

Much like Treasury Secretary Scott Bessent alludes to financing the national debt, stress in banks and in the credit market is the leading edge of a broader crisis in debt financing. That’s another reason to like the precious metals here.

Gold at $4,300 isn’t a mania. Silver above $50 isn’t a panic. They’re the visible signs of trust sliding down the pyramid to safer assets.

Check out the Dollar 2.0: The Final Countdown replay, right here.

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If you have any questions for us about the market, send them our way now to: feedback@greyswanfraternity.com.


2025: The Lens We Used — Fire, Transition, and What’s Next… The Boom!

December 22, 2025 • Addison Wiggin

Back in April, when we published what we called the Trump Great Reset Strategy, we described the grand realignment we believed President Trump and his acolytes were embarking on in three phases.

At the time, it read like a conceptual map. As the months passed, it began to feel like a set of operating instructions written in advance of turbulence.

As you can expect, any grandiose plan would get all kinds of blowback… but this year exhibited all manner of Trump Derangement Syndrome on top of the difficulty of steering a sclerotic empire clear of the rocky shores.

The “phases” were never about optimism or pessimism. They were about sequencing — how stress surfaces, how systems adapt, and what must hold before confidence can regenerate. And in the end, what do we do with our money?!

2025: The Lens We Used — Fire, Transition, and What’s Next… The Boom!
Dan Amoss: Squanderville Is Running Out Of Quick Fixes

December 19, 2025 • Addison Wiggin

Relative to GDP, the net international investment claim on the U.S. economy was 20% in 2003. It had swollen to 65% by 2023. Practically every type of American company, bond, or real estate asset now has some degree of foreign ownership.

But it’s even worse than that. As the federal deficit has pumped up the GDP figures, and made a larger share of the economy dependent on government spending, the quality and sustainability of GDP have deteriorated. So, foreigners, to the extent they are paying attention, are accumulating claims on an economy that has been eroded by inefficient, government-directed spending and “investments.” Why should foreign creditors maintain confidence in the integrity of these paper claims? Only to the extent that their economies are even worse off. And in the case of China, that’s probably true.

Dan Amoss: Squanderville Is Running Out Of Quick Fixes
Debt Is the Message, 2026

December 19, 2025 • Addison Wiggin

As global government interest expense climbed, gold quietly followed it higher. The IIF estimates that interest costs on government debt now run at nearly $4.9 trillion annually. Over the same span, gold prices have tracked that burden almost one-for-one.

Silver has recently gone along for the ride, with even more enthusiasm.

Since early 2023, Japan’s 10-year government bond yield has risen roughly 150 basis points, touching levels not seen since the 1990s.

Over that same period, gold prices have surged about 135%, while silver is up roughly 175%. Zoom out two years, and the divergence becomes starker still: gold up 114%, silver up 178%, while the S&P 500 gained 44%.

Debt Is the Message, 2026
Mind Your Allocation In 2026

December 19, 2025 • Addison Wiggin

According to the American Association of Individual Investors, the average retail investor has about a 70% allocation to stocks. That’s well over the traditional 60/40 split between stocks and bonds. Even a 60/40 allocation ignores real estate, gold, collectibles, and private assets.

A pullback in the 10% range – which is likely in any given year – will prompt investors to scream as if it’s the end of the world.

Our “panic now, avoid the rush” strategy is simple.

Take tech profits off the table, raise some cash, and focus on industry-leading companies that pay dividends. Roll those dividends up and use compounding to your overall portfolio’s advantage.

Mind Your Allocation In 2026