Global financial system implosion begins

[gosub]

Surely this is still reaction to the First Brands collapse - which was essentially a mega fraud facilitated by the current fashion for opaque fund raising vehicles such as venture capital and venture debt funds.

Someone ought to do an anthropological study of these wastrels who lose people billions.
In the case of Kweku Adaboli I referred to above he was top drawer. Father a diplomat, Kweku educated at a Quaker school.

First Brands is more of an idealised American story. Their founder and chief executive (until 13th October) was a sort of Indian waif from the outskirts of Kuala Lumpur (Malaysia)
Brought up in a Catholic school in KL run by the De la Salle Brothers religious order then accepted on a study course in Ohio.
The FT provided the fullest possible profile of this man two days ago.

So yes the banks here and their investors ought to be worried. How do con men manage to raise billions from them, when ordinary people get screwed?
But did they learn nothing from Polly Peck or Greensill?

First Brand is having some domino..but this off US regional banks exposure to California commercial real estate

 

[gosub]

Bank of England chief warns of ‘worrying echoes’ of 2008 financial crisis

Andrew Bailey says a close look is needed at the private credit market after collapse of two big US firms

www.theguardian.com

Ex-Fed insider warns of systemic 'liquidity crisis,' sees gold sell-off as a major 'distress signal'

The Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.

www.kitco.com

https://www.bloomberg.com/news/articles/2025-10-20/bofa-warns-of-forced-stocks-selling-if-credit-problems-persist

 

[kabbes]

I think that the collapse of the private credit firms is indicative of something systematic, if not necessarily systemic. The structures are way too fragile. First Brands was a perfectly reasonable and pretty successful business model but it had been so over-leveraged that it couldn’t cope with the slightest headwind, and that’s a bad sign. I doubt that’s a unique case. However, it’s an open question whether private credit firms represent a systemic threat if they all start collapsing in the same way that banks did.

The point about the steep drop in gold prices being a canary in the mine of liquidity is an interesting one. Not sure what to make of that.

 

[gosub]

I think that the collapse of the private credit firms is indicative of something systematic, if not necessarily systemic. The structures are way too fragile. First Brands was a perfectly reasonable and pretty successful business model but it had been so over-leveraged that it couldn’t cope with the slightest headwind, and that’s a bad sign. I doubt that’s a unique case. However, it’s an open question whether private credit firms represent a systemic threat if they all start collapsing in the same way that banks did.

The point about the steep drop in gold prices being a canary in the mine of liquidity is an interesting one. Not sure what to make of that.

With the gold LBMA has been under pressure last week or so even more so with silver...substantial imports by air over the weekend. But historically been a handy canary particularly with regards Bank that go as far as smelting their brand onto bullion...noticeably more of it to market just b4 they go bust. Credite Suisse for example. Recently very little anything available part from thru Royal Mint.