Come tomorrow First Republic bank will collapse, either being acquired or FDIC receivership. Banks no longer lending, inflation, layoffs only growing, recession. Eg. Samsung Q1 profits down 95%. The rate of collapse paired with the economy could mean very

Reports at the end of last week stated that First Republic lost 100 Billion in deposits since March. Since then many reports from the like of Fortune, Reuters, NYTimes and many others have reported the FDIC preparing to take First Republic into receivership, which is what happens to failed banks. This is even with the 30 Billion bailout by 10 or so of the largest banks. The regulators are effectively closed on the weekend, which is the only reason it hasn't happened sooner. However, the banking system and regulators are also scrambling to find buyer for the failing(realistically failed) bank, even possibly before the FDIC seizes it though it is unlikely. The F.D.I.C. has been talking with banks that include JPMorgan Chase, PNC Financial Services and Bank of America about a potential deal.

Now while a pretty limited bank collapse may be good for crypto, what is stunning is the speed of the collapse. Firstly, at the peak of the 2008 crisis the maximum borrowed from the Fed was around 110 Billion in one reporting period. At the peak of this crisis so far banks have borrowed a record 150 Billion. Further, let us go over the collapses at the start of the 2008 crisis:

• New Century collapsed in April 2007.
• American Home Mortgage collapsed in August 2007.
• Netbank collapsed in September 2007.
• DFC collapsed in December 2007.

It took eight months for four banks to collapse at the start of '08. We have had for banks collapse so far(SVB, Signature, Credit Suisse and now First Republic) in barely two months. And then we to stack on the effects of still rising consumer prices, essentially nonexistent bank lending, job losses and the general effects of a strong recession. There isn't any way crypto wouldn't be affected. It's a question of how bad that's up for debate. It's nice to hodl crypto but when people start to lose their jobs, they made be faced with a choice of selling crypto just to eat and pay rent. Then there's the question of how are you going to get funds in and out of crypto when the banks are all seized up, if not outright collapsed.

We like to think of crypto as 'special' but crypto is undeniably part of the economy. And a sinking economy also means sinking crypto.