Fed Report Reveals...
- Thread starter vantexan
- Start date
UnionStrong
Sorry, but I don’t care anymore.
They are destroying the American way of life.
Top think-tank warns 'insolvent banks lurking in the system' as 200 US lenders face risks
The widening concerns in the US banking sector have raised the alarm among experts, who predict that more lenders will likely face insolvency.
finbold.com
Babagounj
Strength through joy
All part of the plan.
oldngray
nowhere special
Up In Smoke
Well-Known Member
Seems about right. Five or so years after deregulation, the banks fail. 2003-2008 and now 2018-2023. They just can't be trusted.
A lot of it is the banks are holding bonds that have lost a lot of value with the rise of interest rates.
722 in trouble, 31 of which are in really big trouble. Good times.
Up In Smoke
Well-Known Member
The 2018 law changed the size of banks that would be audited, regulated and stress tested from 50B to 250B in deposits. This law reduced the number of audits from over a thousand banks down to a couple hands full. The bond buying would have been red flagged as deposits would not have been covered.
And here we are. Those aren't junk bonds, they're Treasury bonds. Supposed to be super safe. They didn't see the inflation coming when they bought them.
And the biggest banks will devour their assets and the industry will have fewer and fewer banks until what's left can work with the Fed to implement a CBDC.
Up In Smoke
Well-Known Member
It's not the bonds that are at issue. It's having to sell them at a loss because your cash reserves can't cover your deposits.
That's what I said. We're very close to a contagion and printing our way out of it isn't an option.
That’s the part I find particularly offensive. We basically have a banking system that has been making trillions of dollars lending to consumers while borrowing that mone at near 0%.
“But don’t miss a house payment or we’ll
you in the hiney!”
DriveInDriveOut
Inordinately Right
The banks will be fine.
The fed will bail them out.
It's the value of the dollar that gets screwed.
I feel sorry for people who are financially illiterate and hold a lot of cash.
The fed will bail them out.
It's the value of the dollar that gets screwed.
I feel sorry for people who are financially illiterate and hold a lot of cash.
True, they should've been paying decent interest. Now they have to and it may not be enough to save them.That’s the part I find particularly offensive. We basically have a banking system that has been making trillions of dollars lending to consumers while borrowing that mone at near 0%.
“But don’t miss a house payment or we’ll
what about politically illiterate people?
