Why The Banking/Financial Crisis Isn’t Over
This is extremely important and helps to explain what is causing and exacerbating the current bank run/financial crisis. It isn’t clear yet exactly how it plays out but it tells us it isn’t going to continue much longer. The FED has to do something soon. Either create some new funding program and or cut rates, either or is easing, so this week marks thebeginning of the end, of the tightening cycle. https://www.zerohedge.com/markets/hedge-fund-cio-fed-wishes-it-had-shut-down-reverse-repo-facility-which-making-bank-run
Agree with you again. Dozens if not hundreds of banks bought us treasuries BEFORE the Fed started the rate hikes. So all of those are under water until maturity which could be months or YEARS from now. As the recession kicks in delinquent mortgages will be the rule and banks will get hurt. Also, new loans will slow way down so revenue source there will be gone. All in all, not a good look.