“Another cockroach spotted in America!” Markets around the world crashed due to new crisis in banks, gold skyrocketed

There is an outcry in the stock markets around the world. Wednesday proved to be a nightmare for investors. From America to Asia, a red sea of ​​selling is visible everywhere. Dow Jones fell by 300 points, while Nifty also fell, giving a signal to Indian investors.

But the question is, what happened suddenly that so much panic spread in the market? There are not one, but three big reasons behind this.

1. Another ‘cockroach’ seen in America! Market frightened by new crisis of banks

The biggest reason for this fear in the market is the sound of a new banking crisis in America.

• What happened? Two regional banks of America—Zions Bancorp And Western Alliance Bancorp—’s shares fell badly by 11% to 13%.
• Why break up? It has come to light that these banks have given some loans which have been fraudulent and now they are on the verge of collapse.

On hearing this news, investors remembered the dreadful scene of March 2023, when Silicon Valley Bank (SVB) had collapsed. This fear was further fueled by a statement by JPMorgan CEO Jamie Dimon. He said:
“When you see one cockroach, know there are more.”

His direct indication was that this is not the problem of just two banks, but there may be many more hidden ‘cockroaches’ in America’s banking system. This one statement created a tsunami in the market.

2. Secret meeting of two ‘super powers’: Trump to meet Putin

Apart from this economic fear, there is also going to be a big stir in world politics. US President Donald Trump has revealed that he will meet Russian President Vladimir Putin in the next two weeks.

• Where will we meet? In Budapest, Hungary.
• What happened? It is being told that an ‘important’ two-hour long phone conversation took place between the two.

There is uncertainty about why this meeting is happening and what effect it will have on the Ukraine war or the world, and the market does not like uncertainty.

3. America’s own drama: The shadow of the ‘shutdown’

Amidst all this, America is struggling with a problem of its own. The government there is running out of money (which shut down Says) and the leaders are not able to agree on this. Another funding bill has failed in the Senate. When the world’s largest economy itself is in disarray, it affects the entire world.

Result: Investors scared, gold and silver skyrocketed!

Investors are badly scared due to these three reasons:

• They are selling shares heavily (so the markets are red).
• The fear meter (VIX) has also jumped to its highest level in several months.
• And whenever fear spreads in the market, investors keep their money in the safest place, i.e. gold and silver Let’s put it in. This is the reason why the prices of gold and silver have reached a new high.

Overall, the markets around the world are currently under a dark cloud of fear and uncertainty.