A major bank in the United States is down, and customers have no access to their funds.
It's not just a temporary glitch either, it's been ongoing all day long and still not fixed as of press time for this article.
Because your "money" is nothing more than digits in a computer that they can make vanish with a click of a keyboard!
Also, legally you are not a "depositor" with these banks, did you know that?
You're a lender!
And when the bank goes under, they say "Sorry! We don't have any money to pay back our lenders, thanks for playing!"
Yes, so far the FDIC has backstopped every failing back.
And yes, Bank of America will likely come back online at some point.
But one day the music will stop.
One day we will face massive bank runs that the FDIC won't be able to cover.
More than 20,000 Bank of America customers on Wednesday reported issues accessing their account information, according to a site that reports on service outages in real time.
Reports of service issues spiked around 12:45 p.m., according to DownDetector.com.
Most customers reported having issues with their mobile banking accounts.
Bank of America did not immediately respond to requests for comment.
Users reported being unable to transfer money between accounts or seeing an inaccurate balance of zero on their accounts via the banking app.
Other customers said the ATMs would not show their account balance, but they were still able to withdraw cash.
This comes on the heels of the massive Verizon outage that occurred yesterday and for many people is still not fully fixed:
Verizon Suffers Major Outages On East Coast And Other Parts Of US
We had the very same thing happen to the largest UK bank back in December:
Leading UK Bank, MetroBank, Down For Over 8 Hours And Counting...
And the same thing happened to Wells Fargo back in August:
BREAKING: Customers Report Bank Deposits "Missing" From Many Wells Fargo Accounts
And don't forget just a few weeks ago when we told you Warren Buffett sold over $1 billion of stock in....Bank of America!
Folks, it's becoming so obvious we can predict these things now!
INSIDER'S SELLING (Part 6): Warren Buffett DUMPS Almost $1 BILLION of Stock, Stock Market Crash Incoming?
Heads up....the "Oracle of Omaha" just sold almost $1 billion of Bank of America stock.
Now I'm not a financial expert or anything, but Warren Buffett is and do you generally BUY or SELL when you think the market is at a top and might soon crash?
Right.
As I always say, don't listen to what they tell you, watch what they DO!
That's why I've been bringing you my "Insider's Selling" series, which is now up to Part 6.
Today it's Warren Buffett casually cashing out of nearly a BILLION worth of Bank of America stock.
That brings his "cash hoard" up to $278 billion in liquid cash:
The last time he had such a large cash reserve was heading in to the 2008/09 stock market crash, where Buffett famously bailed out the US Government and Goldman Sachs.
Warren Buffett's ongoing liquidation of his Bank of America stake comes right before the Federal Reserve's expected start of the interest rate-cutting cycle in mid-September. Additionally, Buffett has halved his Apple holdings and amassed a record amount of cash. At 93, it seems the billionaire investor is bracing for a rough patch in the US economy.
Buffett's Berkshire Hathaway has been on a six-week selling spree of Bank of America shares, trimming its entire position by nearly 13% and generating upwards of $5.4 billion in proceeds, according to Bloomberg. Berkshire's latest filing shows that since last Monday, another $982 million worth of shares were sold.
Bloomberg data shows Berkshire has dumped more than 129 million BofA shares in the last six weeks.
Berkshire remains the bank's largest stockholder, with 903.8 million shares, worth about $36 billion, as of Tuesday's closing price. However, the position's size has fallen to early 2019 levels.
Berkshire's selling was abrupt and without reason. The wave of selling began in mid-July around and above the $40 handle.
In addition to the BofA selling, Berkshire dumped half its Apple shares and other securities, sending its cash pile soaring by a record $88 billion to an all-time high of $277 billion at the end of the second quarter.
We all know the "Oracle of Omaha" is a rare unicorn in the investing world.
Perhaps originally a man who outsmarted Wall Street, he is also famous (or infamous) for getting sweetheart deals during the 2008 Stock Market Crash.
Remember that?
He coughed up a few billion to bail out some "too big to fail banks" and in return basically received a guarantee of his "investment" from the Federal Government.
If you or I had done that, they might just call it insider trading, but for Uncle Warren it was deemed "patriotic".
But that's not the main focus of this article.
The main focus is something I'm now calling the "Warren Buffett Indicator".
This short video below explains it in video format, but basically as Warren Buffett's cash hoard grows, it almost always seems to top out right before a huge stock market crash hits....
And guess who's there to scoop up all the great assets for pennies on the dollar?
Uncle Warren.
Look, I'm not suggesting he's doing anything wrong, not at all.
Perhaps he's just really, really smart and really, really patient and disciplined.
When people keep telling you the next crash is going to be much worse than the 2008 crash (which for most of us was by far the biggest of our lifetimes), this is what they mean...
Look how his cash hoard dwarfs 2008.
The size and scope of what is coming is going to dwarf anything you've seen before.
It has to, the amount of money printed since then is astronomical.
It's what Bo Polny told my on my show earlier this week....
Look at this chart and the chart above and tell me if they don't look extremely similar:
It's all connected to 1971 when they removed us from the Gold Standard.....
And the years that followed when they printed magic money to infinity and the money machine went BRRRRRRRRR on overdrive!
You know how growing up your parents would say money doesn't grow on trees?
To these people it does!
It grows on printers, they just turn on the printer and out spits new money.....as much as they want!
Now it's just extra zeroes in a computer program, but it used to be actual printing of greenbacks.
Do you know what happens if we suddenly shocked the world and went BACK to a Gold Standard?
This:
"Gold Revaluation" Incoming? Price Could Be $10,000-60,000 Per Ounce!
Bookmark it, print it out, save it and study it, because it could be life-changing very soon.
As always, I'm not a financial advisors, but I sleep a WHOLE lot better at night holding Gold, Silver and Crypto.....
Speaking of gold, have you seen this?
https://wltreport.com/2023/10/15/gold-now-classified-as-tier-1-risk-free/