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Aftershocks Part 2: UBS/CS merger staves off failure, but confidence shaken for bank stakeholders = markets now "reaction dependent" and Fed might do so. 4 signs to see first signs the crisis ebbing. Stay OW Tech + Bitcoin.

In a time of uncertainty, investors are "reaction dependent" and the Fed might do so...

Over the weekend, $UBS announced plans to acquire Credit Suisse, in the latest action to contain the widening financial crisis. A total of 4 notable events took place since Friday, all to contain the continuing after-shocks post-SVB (Silicon Valley Bank) failure. At the top of mind is whether the $UBS/$CS combination will contain the crisis and ripples.

Notable #2: 6 national banks, Fed, BoE, BoC, BoJ, ECB and SNB, introduce USD swap lines to provide dollar funding. And these will be conducted with a frequency of daily (vs weekly).Notable #3: On Sat, the Mid-size Bank Coalition of America (MBCA) sent a letter to the FDIC arguing extending insurance to all deposits would halt the exodus of deposits from smaller banks.Notable #4 (smaller): Fed Chair Powell and Treasury Secretary Yellen released a joint statement in support of the SNB actions (supporting $UBS/$CS) and proclaiming the US financial system resilient.SVB's failure triggered several dimensions of risk for the financial system. - first, a revelation that in the digital age, deposits are not "sticky" and flee with a swipe- second, trust for stakeholders as equity holders wiped out and bondholders "haircut"- third, credit li...

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