Bank crisis is not imminent, even with reports of the sale of USBAC PACK WEST

This is Buffett Taro.

It has dropped 52% due to overtime transactions in response to reports that USBAC West Bank Corp (PACW below) is considering sell-off. Also, from the view that “the bank crisis is not over,” market participants anticipate that “there will be interest rate cuts as early as July,” but I think this is a mistake.

Like Silicon Valley Bank, Signature Bank, and First Republic Bank, which have already gone bankrupt, PACW is a regional bank based in California, and all of the current banking crises are concentrated on the west coast.

In other words, since it's not happening across the US, the Fed probably doesn't think that a banking crisis is imminent, and it's hard to think of moving to cut interest rates early. Even so, considering that there is a large gap with market participants in the outlook for policy interest rates, the FOMC after July could be a source of market turbulence.

In order to avoid this, it is expected that Chairman Powell will continue to send hawkish messages until market participants change their minds, so I think the upper price of the stock market will be heavy.

Good Luck.