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The expert who predicted the collapse of Lehman Brothers in 2008 today warned that Credit Suisse could be the next to go under after the failure of two Wall Street banks left the US bond market in 'serious trouble'.
Robert Kiyosaki, author of Rich Dad Poor Dad, delivered the gloomy prediction as markets crashed following the collapse of Silicon Valley Bank last Friday and Signature Bank on Sunday. Experts believe that the tremors will not trigger a new global banking crisis like the disastrous one in 2008 ‒ but predict it will cause a new credit crunch, making it harder and more expensive for consumers and businesses to borrow cash as banks try to limits risks.
Speaking on Fox News' Cavuto: Coast to Coast, Kiyosaki said: “The problem is the bond market, and my prediction, I called Lehman Brothers years ago, and I think the next bank to go is Credit Suisse, because the bond market is crashing.”
He made the prediction yesterday, just hours before Credit Suisse itself admitted it has a 'material weakness' as the cost of insuring its bonds from defaulting reached the highest level since the bank's creation in 1856. But the bank vehemently denied the claims it is under threat, with CEO Ulrich Koerner declaring today: “Our SVB credit exposure is not material,” while insiders insisted the world's seventh largest investment bank, headquartered in Zurich, is held to higher regulations in Switzerland compared to SVB and other US banks.
“We are conservatively positioned against any interest rate risks,” the senior source said. The collapse of SVB is the biggest banking failure since 2008's banking crisis. On Sunday another lender, New York's Signature Bank, also collapsed. It has shocked global markets and sparked panic with investors who has been dumping bank stocks, even though the US Government stepped in to protect customers and HSBC rescued the UK arm after buying it for £1.
(Source: https://www.dailymail.co.uk/news/article-11857449/American-tipped-Lehman-Brothers-collapse-predicts-Credit-Suisse-bank-failure.html?ito=native_share_article-top)
