Redemptions are exploding as shadow banks unravel. Here’s why your savings, retirement, and dollars are in jeopardy.

When Redemptions Accelerate, the System Cracks

Could a bankrupt home improvement company be the first domino to fall in a trillion-dollar shadow banking crisis?

Last week, Renovo Home Partners, backed by BlackRock, suddenly went bankrupt—despite being valued at full face just days earlier. That private credit loan, deemed worth “100 cents on the dollar” one week, became worthless the next. It wasn’t a glitch. It was a signal: the paper valuations propping up vast portions of the shadow banking sector are pure fiction.

And now, redemptions are exposing the lie.

These redemptions aren’t just reshuffling investor portfolios—they are destabilizing the system. The opaque, unregulated world of private credit and shadow banking is being forced into the light, and what’s being revealed should concern every American saver and retiree.

Shadow Banking Is a $100 Trillion House of Cards

• Shadow banks (non-bank financial institutions like hedge funds and private credit lenders) now hold nearly half of all financial assets globally
• In the U.S. alone, private credit accounts for 15% of total financial assets, yet is largely unregulated and unmonitored
• These entities don’t follow the capital requirements of traditional banks, making them far more vulnerable to sudden shocks

As Taylor puts it, “You go from full value to zero in days if the value was never real to begin with.”

And now we’re seeing that illusion collapse.

Why Redemptions Trigger System-Wide Failure

A redemption occurs when investors want their money back. In a healthy system, that’s manageable. But shadow banks hold illiquid, high-risk assets that can’t easily be sold without exposing their true (and often worthless) value.

Once redemptions start:

• Funds must sell assets quickly to meet cash demands
• Assets once valued at par are revealed as junk
• Panic spreads as investors flee other funds
• Even “healthy” funds see redemptions, triggering contagion

Recent example:

• First Brands Auto collapsed overnight, hammering funds invested in it
• UBS shut down both an exposed fund and a healthy one due to widespread redemptions

This is the definition of systemic risk.

The Federal Reserve’s Only Playbook: More Printing

As redemptions accelerate, the dominoes extend beyond shadow banks:

• Regional banks face collapse
• Assets freeze as liquidity evaporates
• Bail-ins become possible—where your deposits are seized to stabilize banks

And when the crisis hits critical mass?

The Fed will step in. Not with reform. But with Quantitative Easing (QE).

More printing. More dollar creation. More rapid inflation.

That means:

• Your savings are devalued
• Your retirement is at risk
• Your dollar loses trust

And this time, the safety net might not be big enough.

Why Gold and Silver Matter Now More Than Ever

There is no bailout coming for the American saver. But there is one protection that has stood for centuries:

Physical gold and silver.

• Tangible assets with no counterparty risk
• Proven inflation hedges during every currency crisis
• Trusted tools for wealth preservation outside of the financial system

As Taylor says, “When QE returns, one asset goes up and one goes down. Can you guess which one is gold?”

The Clock Is Ticking

You are not their priority. When the system breaks, your deposits, retirement accounts, and savings will be the first on the chopping block. The private credit collapse and accelerating redemptions are the warning sirens.

If you don’t have a strategy outside the system, now is the time to build one.

About ITM Trading
ITM Trading has over 28 years of experience helping clients safeguard their wealth through personalized strategies built on physical gold and silver. Our team of experts delivers research-backed guidance tailored to today’s economic threats.

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