Hugh Hendry, a macroeconomics specialist and hedge fund supervisor, recently delivered a severe warning regarding the US banking sector and the nation’s economy overall.
Hendry claims that the recent widespread fear and capital flight from the US banking industry is perfectly justifiable in a new interview with Bloomberg Markets.
According to Hendry, a significant drop in the M2 currency supply, which partly measures the amount of cash in liquid savings accounts, might encourage the US government to engage and stop people from withdrawing funds from their bank accounts.
“Occasionally, it relates somewhat to panic. You should panic, in my opinion. Right now, you’re witnessing M2’s largest waterfall drop. Deposits, not loans, make up M2. Deposits are leaving the system in this manner and entering funds for the money market.
It might get to the point when the Treasury and the Fed are forced to engage and place restrictions on your ability to withdraw money from US banks as a citizen.”