Post by
oilandgasmick on Mar 17, 2023 7:44pm
Is any of this a real surprise? Get Woke, Go Broke.
-Anyone who has followed Bank Suisse saw this coming long before the interest rate hikes. The bank has struggled for the last few years and faced massive withdrawals for much of 2022. They went "woke" a long time ago and railed against oil and gas for years while pivoting towards green projects that might have looked good on the virtue band wagon but did nothing for their profitability. They missed out on the oil rally and the profits that it brought. As early as 2019 there were a number of warnings as to where they were headed and investors were warned to bail out. The warnings were largely ignored but the stock chart over the last 4 years indicated that some people were listening. There were also reports (long before 2023) that some of their "accounting procedures" were questionable. Again, warnings were largely ignored.
-SVC? There again, no surprise. They went super woke as well and invested heavily in smaller community green projects but they had other problems as well. They were not well diversified and were held by a relatively small client base that represented the Hollywood elite. We all know how loyal that bunch is towards others. Silicon Valley also bet heavily on short term bonds which got hammered when interest rates started to rise. Why did they not see the inflationary pressures that built up during the Covid years? Could so called "financial experts" not predict that once inflation took off, bonds (especially short term) would be in big trouble as the Fed inevitably jacked up rates to fight inflation. Ask any first year economics student if some of this was predictable. Again, warnings were ignored as the woke crowd (just ask Sharon Stone) piled in to make sure that they were seen on the wagon.
Bottom line? Get Woke, Go Broke.
Meantime Canadian Banks and Canadian energy companies will hold on so don't panic. Gold, as always, has been underated for years and will have at least a temporary run.
None of these things should come as a surprise.