The imminent collapse of First Republic Bank FRC was the talk of the town over the weekend and the rumors proved to be well-founded, as the Federal Deposit Insurance Corporation confirmed the closure of the bank early Monday.
Here’s a recap of a few major headlines that hit the wire over the weekend:
Musk Touts His Credentials: Tesla CEO Elon Musk has been warning of Fed rate hikes pushing the economy into a recession. He repeated the warning on Sunday ahead of the week's Fed meeting. This time around, he said the economy is already in a mild recession and added that if the Fed does not relent, a severe recession is in the offing.
What caught everyone's attention was the billionaire's claim that he may have more real-time, global data in one head than anyone else by virtue of running Tesla, Starlink and Twitter.
Munger Warns Of More Trouble At Banks: The banking crisis could have further legs to play out, according to Warren Buffett's trusted lieutenant and Berkshire Hathaway Vice Chairman Charlie Munger. In an interview with Financial Times, Munger warned that banks are packed with bad loans that will be vulnerable as bad times comes and the property market collapses.
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Economist Raises Specter Of 1929-Like Stock Market Crash: Macroeconomist Henrik Zeberg recently issued a stark warning about the largest crash in equities and risk assets since 1929. He also sees a deep recession ahead. The economist predicted a false rally before things come crashing down. "First the inconceivable and very hated #BlowOffTop which will pull investors in on the wrong side before Crash," he said.
Snowden Chimes On AI Training Models: Former NSA contractor Edward Snowden shared his thoughts on artificial intelligence, the hot-and-happening technology. He sees AI models surpassing human capabilities if they are allowed to be "better than us." The current training methods revolve around teaching AI modestly to "think like us," he said.
Dorsey Unhappy With Musk? Twitter co-founder and former CEO Jack Dorsey said in the BlueSky alt platform that Musk is not the best possible leader for Twitter. “No. Nor do I think he acted right after realizing his timing was bad. Nor do I think the board should have forced the sale. It all went south,” he said.
What Else: Tech earnings season has got off to a solid start, sending stocks in the space higher, and now it is up to Apple to take up the baton and keep the momentum going, says Wedbush analyst Daniel Ives.
Most financial assets are expected to see some volatility in the Fed decision week. Here's Benzinga's chart analysis of the SPDR S&P 500 ETF Trust SPY, Bitcoin BTC/USD and spot gold.
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