Lions... Banks Are In Trouble. (Something Is Going To Break). Here's Why.

From Greg M

Lions…

Warren Buffet’s Berkshire Hathaway is dumping more bank stocks. Citigroup (C). Bank of America (BAC), and Capital One.

I see this as a warning and its obvious….

My opinion here with Buffet, this isn’t just “portfolio rebalancing,” this is a strategic retreat from the blast zone. Buffet, an insider of the highest order, is not dumping bank stocks for nothing.

FACT. Another banking crisis is brewing on multiple levels. CRE (Commercial Real Estate) defaults are increasing quietly, threatening balance sheets. Consumer debt delinquencies are SKYROCKETING, auto loans, credit cards, ETC.

Liquidity in the entire financial system itself is drying up. Lions, some kind of “credit event” is coming, and it may come without warning.

Global sovereign and corporate debt are at historic highs, and as we have covered several times as of late, corporate debt defaults are already happening. Most of this debt is short-term rolled over debt reliant on low rates. If it becomes public that just one major institution, perhaps one that Buffet is already dumping, is in risk of some kind of default, then… a domino effect.

Right now systemic stress is being papered over by "calm" markets along with every manner of deception and distraction, but behind the scenes- losses are being hidden, and assets are being quietly dumped. Zombie banks holding unrealized losses means rising potential for liquidity freezes. AND THE ENTIRE SYSTEM STRUCTURE IS A ZOMBIE. (Its DEAD and it does not even know it).

Lions… Here is my unfiltered take. Buffett Is Taking the Lifeboat. This aligns with his historical timing, he gets out before the headlines, not after.

EXAMPLES OF BUFFET GETTING OUT BEFORE CRASHES… (Lions, what I put here below IS public record- look this up for yourselves).

2007–2008: The Housing Crash. Before the collapse of Lehman and Bear Stearns, Buffett had already reduced exposure to financials like Freddie Mac and Fannie Mae. He warned publicly of “financial weapons of mass destruction” (derivatives) as early as 2002.

2020: COVID Crash. In Q1 2020, Buffett dumped all airline stocks (Delta, United, American, Southwest).

Now 2024–2025: What’s He Doing? Dumping banks. Raising cash.

Lions… Liquidity Can Vanish in Hours. Repo markets, interbank lending, derivatives linked to credit default swaps. These markets can lock up in hours, just like Lehman weekend in 2008.

Buffett knows all this, and now, he’s “quietly” stepping off the stage. He’s seen a credit event before, he knows what liquidity freezes feel like. Buffet’s track record proves that when he steps back, something is about to break.

GM