Replying to Avatar bitcoinaz

🔥 Almost half of America’s 4,800 banks are already burning through their capital buffers.

🔥 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.

Monetary Tightening and U.S. Bank Fragility in 2023: Mark-to-Market Losses and Uninsured Depositor Runs?

By Erica Xuewei Jiang, Gregor Matvos, Tomasz Piskorski, Amit Seru

https://www.gsb.stanford.edu/faculty-research/working-papers/monetary-tightening-us-bank-fragility-2023-mark-market-losses

https://www.msn.com/en-us/money/companies/half-of-americas-banks-are-already-insolvent-–-this-is-how-a-credit-crunch-begins/ar-AA1aDhwV

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quark 2y ago

Yes. But the banking system is sound and resilient, the Fed said. From the same guys that said that inflation was transitory.

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bitcoinaz 2y ago

Fed is builder of the foundation, you don't show the rotten foundation to the clients.