Half of America’s Banks Are Potentially Insolvent

Thousands of banks are underwater. Another Biden spectacular.

Watch the Democrat media axis package this steaming pile of dung as a marvelous, transformative moment.

RIDICULOUS Washington Post headline about #FTX

Sam Bankman Fried is being protected by the liberal media

Are you paying attention yet? pic.twitter.com/uN4xFXZ5XO

— The Pleb 🇨🇦 Reporter (@truckdriverpleb) November 17, 2022

Half of America’s banks are potentially insolvent – this is how a credit crunch begins
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By: Ambrose Evans-Pritchard, Yahoo Finance,May 2, 2023:

The twin crashes in US commercial real estate and the US bond market have collided with $9 trillion uninsured deposits in the American banking system. Such deposits can vanish in an afternoon in the cyber age.

The second and third biggest bank failures in US history have followed in quick succession. The US Treasury and Federal Reserve would like us to believe that they are “idiosyncratic”. That is a dangerous evasion.

Almost half of America’s 4,800 banks are already burning through their capital buffers. They may not have to mark all losses to market under US accounting rules but that does not make them solvent. Somebody will take those losses.

“It’s spooky. Thousands of banks are underwater,” said Professor Amit Seru, a banking expert at Stanford University. “Let’s not pretend that this is just about Silicon Valley Bank and First Republic. A lot of the US banking system is potentially insolvent.”

The full shock of monetary tightening by the Fed has yet to hit. A great edifice of debt faces a refinancing cliff-edge over the next six quarters. Only then will we learn whether the US financial system can safely deflate the excess leverage induced by extreme monetary stimulus during the pandemic.

A Hoover Institution report by Prof Seru and a group of banking experts calculates that more than 2,315 US banks are currently sitting on assets worth less than their liabilities. The market value of their loan portfolios is $2 trillion lower than the stated book value.

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armaros

11 months ago

The lockdowns sent commercial property demand into a free fall.
Office vacancies in are now in the double digits in top office markets like NY, SF, LA, Dallas, and their mortgage debt now piling and servicing higher due to the higher rates, will drop on the banking system like an anvil.
No worries, the regime wants central banking and the wipeout of regional lenders serves is part of their plan to make credit accessible to a few and currency limited to digital assets so that the regime can get full control of your spending and finances.

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Chris Wolf

11 months ago

Jenn Pellegrino had the best news show on TV, with great guests who all loved her, and Newsmax thought it would be smart to put her on a panel, where all I see is a pushy black male talking over everyone in repetitive black male stupidity.
I don’t want to watch any black male talk about anything anymore.

5

keith

11 months ago

Brush-up on your bartering skills and have a workable knowledge of the value of every nut, bolt, and screw in your possession. The very skills of life in your accumulated world have value and what/how you apply as such may define whether you sink or swim. The stacks of dollars you have, may come in handy during a cold and bitter night.

5

D

garry pollack

11 months ago

Yes Klaus U were right—I own nothing & M incredibly happy—Why? Because now all, those people who had it ALL! will soon B sharing my joy—& B just as poor!!!

0

Andrew

11 months ago

”If Biden gets into Office the Stock Market will crash”… President Donald J.Trump.
Right yet again.

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