It appears that bank runs and bank failures are just around the corner. Will this trigger the next stock market collapse? 

October 29 (King World News) – Gregory Mannarino, writing for the Trends Journal:  2023 was just the opening act starting with regional/smaller banks. We called it then, and now they cannot cover it up as losses are piling up.

What happened in 23’ and is happening again now.

  • Bad interest rate bets. Banks loaded up on bonds/debt which lost value.
  • Risky loans which defaulted then, and are defaulting today again at a record pace.

What was the end result? Confidence shock. People yanked deposits. (Every bank’s worst fear).

So how did they “fix” it? (They didn’t)…

Emergency band-aids, special lending windows, and quiet guarantees to stop the panic… that’s all. No underlying issues were fixed, not even one.

Why it’s worse now… (AND THE MEGA BANKS ARE IN THE SAME SITUATION):

Funding costs.

At the top of the list are these two.

  • CRE, (commercial real estate) refi wave. Banks have overexposed themselves to commercial real estate, (losing value), and now they have to refinance that debt at today’s rates. Losses get real, not paper.
  • Loan defaults are skyrocketing across the board. (The consumer is being wiped out). Banks are holding massive amounts of loans which cannot be paid back or refinanced.

What happens when defaults spike faster? (And they will).

Waves of losses hit… now becoming real losses, no longer “unrealized.”

Banks then book “charge-offs.” (A bank charge-off = the bank admits a loan won’t be paid back as promised and takes the loss on its books).

Losses then eat equity FAST.

Regulators step in and push “raise cash or merge.” (This is exactly what we saw back in 23’).

Also, in 23’… then came the fire sales. (MEGA banks feasted on good assets for pennies on the dollar).

Troubled banks dump loans/securities to raise cash. (Unrealized losses that were hidden on paper, are now real).

This Is What’s Coming, (and has already begun).

What it looks like.

Staggered failures. Not a single “big bang.”

I expect that we will see rolling seizures/mergers as losses surface/cannot be covered up. They cannot allow the public to fully understand what’s happening. With that, expect more propaganda, lies, deceptions…

KEY POINT: Forced consolidation. Big banks swallow smaller ones. (This is the doorway into the new system).

Expect credit contraction. Banks will plug holes by lending less.

Then comes INCREASED Liquidity addiction. More dependence on overnight loans/central backstops = fragile system. (The system cannot function without more debt). So their “fix” will be more debt, even lower rates, and further currency devaluation… 

2023 showed us the cracks. Now here in 2025 it’s the slow-motion cave in. Credit will tighten, bank losses will crystalize/become real, FOR BOTH THE SMALLER AND MEGA BANKS… and confidence does what it always does… runs. (Runs on banks).

I fully expect consumers to start pulling cash from the regional banks, which will then bleed off to the MEGA banks. Once this happens, expect withdrawal limits, reduced access to your cash.

WE MUST stay as far ahead of the curve as possible.

Be first, be smarter… and we are.

We do not wait for the crowd, which is ALWAYS the last to know, WE ACT BEFORE the crowd does.

Tavi Costa On The Gold & Silver Volatility
To listen to Tavi Costa discuss exactly where we are after the recent pullback in gold, silver and mining stocks and what to expect going forward CLICK HERE OR ON THE IMAGE BELOW.

To listen to Alasdair Macleod discuss this week’s trading in gold and silver as well as what to expect next week CLICK HERE OR ON THE IMAGE BELOW.

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