With the BRICS bloc embracing de-dollarization and encouraging a global economic shift, one notable billionaire has made a major US bank failure prediction. Indeed, real estate investment mogul and CEO of $115 billion Starwood Capital, Barry Sternlicht, has urged preparation for widespread failures in the coming year.
Speaking to CNBC, Sternlicht predicted that the United States would witness one bank failure every week. Specifically, he stated that the more than 4,000 regional and community banks in the country would be at risk due to high interest rates and inflation. All the while, the US debt crisis is nearing, with the greenback facing lessening prevalence internationally.
Also Read: BRICS: Russia Makes Massive Oil Discovery
Billionaire Predicts Major US Bank Failures in 2024
Over the last several years, the increasing relevance of the BRICS alliance has been a massive geopolitical development. It has seen the global south get a renewed voice amid the collective’s pursuit of a multipolar world. However, their initiatives have greatly affected the West, with the US dollar being abandoned through BRICS trade activity throughout the year.
However, that BRICS action isn’t all that should be concerning, as a billionaire has made a major US bank failure prediction. Additionally, the aforementioned Barry Sternlicht has forecasted a host of bank failures to take place in the coming year.
“I think people are looking for these cracks, and you’re going to see the cracks develop now. You’re going to see a regional bank fail every day, or not—every week, maybe two a week,” Sternlicht said in an interview.
Also Read: BRICS Alliance Set to Make Big Announcements at Summit
That prognosis is certainly harrowing, especially for the ramifications it could have on the US economy. Last year, First Republic Bank collapsed, causing massive worry among citizens. That bank had more than $6 billion in assets, with another $4 billion seized by the government.
Subsequently, Sternlicht’s prediction would only magnify that reality. Indeed, his expectation is connected to high interest rates and inflation concerns. Moreover, the Federal Reserve has shown no signs of cutting interest rates anytime soon.
Although the Central Bank has said it will cut rates in 2024, they have not settled on a timetable. Therefore, these community banks could be set to struggle sooner rather than later. Additionally, increased federal debt and US dollar concerns will only enhance a rather grim outlook for the United States heading into a critical presidential election this year.
