AMTV's Christopher Greene covered the story with warnings about how he believes the bank runs have already started and that the nightmare has only just begun.
"Bank runs have officially started in the United States of America," Greene said. "We're going to have bank runs; we're going to have capital controls; we're going to have restrictions on withdrawals – and this is only the beginning."
"Blackstone, which holds tons and tons of customer funds and debt, is now prohibiting the willful withdrawal of customer funds and monies in their accounts. How is this any different than SBF or FTX?"
BREIT sits under mountains of debt, Greene added, noting that this is part of why it has run out of liquidity. Blackstone COO told CNBC that investors should look at the fund as a "long-term vehicle that's well positioned for the future" – in other words, do not panic and leave your money there.
It is not as though investors can even get their money out even if they wanted to, though. With those withdrawal limits in place, they are restricted from doing so, which also sent the company's stock price tumbling. (Related: Are the U.S. markets on the verge of a collapse?)
"They have zero liquidity because, again, the investments that they're invested in cannot be sold and they're in mountains of debt," Greene warned.
America's entire financial system is "built on a Ponzi scheme," says Greene
Americans really started getting dosed with this type of information back around 2008 when Ron Paul ran for president. Hidden truths about the inherently corrupt nature of the U.S. markets and financial system started to go mainstream, and now they are reaching the point of becoming common knowledge.
"The whole system is built on a Ponzi scheme," Greene explained.
"The whole U.S. financial fractional reserve banking system is built on debt and fractional reserve monies that are lent out 10:1 – sometimes 100:1 – and in the case of the derivatives market, thousands to one, based on nothing, just a figment of the imagination – what they call the faith and credit of the U.S. treasury, which a lot of Americans have zero faith in, including me."
Greene's advice is to put your money into "alternative" investments like real estate and cryptocurrency as opposed to traditional bank accounts, the stock market – including 401ks – and other fiat-based financial instruments.
"I work at a bank and we are completely out of debit and credit cards due to supply chain issues," wrote a commenter about how even the plastic needed to make credit and debit cards is unavailable. "If people lose their cards, it takes almost two months to get it replaced."
"I went into my credit union the other day and the teller told me that many people have been taking large withdrawals lately," claimed another.
Another suggested that Greene's extrapolations from the REIT situation does not necessarily apply to the rest of the financial system, especially since real estate investments can be hard to redeem rapidly as it is due to the time it takes to liquidate such assets.
"Again, it's the REIT only," this person added. "The sky is falling, but not nearly as fast as you're claiming."
Another wrote that in his neck of the woods in Colorado, everything appears to be "business as usual," at least for now.
More news about America's plunge to the bottom of the Mystery Babylon heap can be found at Collapse.news.
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