The Five Stages Of Bank Failure

Real Vision’s Raoul Pal said that the Five Stages of Bank Failure are similar to the five stages of grief: denial, anger, bargaining, depression, and acceptance, as described by Elisabeth Kübler-Ross.

The talking heads on financial TV ask everyday where we are in the banking crisis. Is it over yet? After scooping up First Republic, JP Morgan’s Jamie Dimon said, “This part of the crisis is over.” After he said that, however, the shares of regional banks such as PacWest, Zions, and Western Alliance were cut in half. The market doesn’t believe Mr. Dimon.

Elisabeth Kübler-Ross described five stages of grief: denial, anger, bargaining, depression, and acceptance. ‎On Twitter, describing the typical timeline for a banking crisis, Real Vision’s Raoul Pal posted:

It’s one bad apple,

Well maybe it’s just a few

“Banks remain strong”

It’s the evil short sellers (we are considering a ban)

Ok, now we are banning shorts

Oh, seems that didn’t work

Cut rates

That didn’t work

Panic

Change . . .

Kübler-Ross’s denial stage would include Pal’s “one bad apple,” “just a few,” and “Banks remain strong.” The anger stage would be “evil short sellers,” “banning shorts,” and it “seems that didn’t work.” The bargaining stage would be “Cut rates” and “That didn’t work.” Depression would be “Panic,” with “Change” being the acceptance stage.

On May 16, EU ministers approved the Markets in Crypto-Assets (MiCA) legislation, making it the world’s first cryptocurrency regulations.

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