US Banks double whammy

Even if the bonds dont suffer a downgrade, fear will induce people to panic and withdraw or sell whatever securities or bonds or other financial instruments.

This will cause liquidity problem to the banks and in the end, the bonds will be downgraded as there isnt enough liquidity to support that rating.

So it is a lose lose situation here. Intervention will only delay the inevitable althought CB can print whatever money they want. But the risk they take by intervening has no rewards other than to soothe the stock market and preventing it from crashing. But still, the inevitable will still come.

This bear is going to be one long one with an incoming short rally in the middle, which people will get burned at the peak. Everyone is just waiting at the sidelines, waiting for the right opportunity to come. Therefore the herd mentality has already formed. Therefore a spark is needed for the herd to move. More rate cuts anybody?