🔥 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

did you see the quoted note?

I've been 6 seconds on twitter and already watched a student pepper-spraying her teacher and people arguing about it

AMA

Very good summary and historical perspective to keep you out of the noise and chaos that is coming. #Bitcoin

“The Fed could have printed four or five billion to recapitalize the banks in 1930 – but the number that mattered was multiple times this amount – the tens of billions of annual total system Credit growth necessary to hold collapse at bay. The Fed could have bailed out Lehman, but the number that mattered was the $2.5 TN or so yearly Credit expansion necessary to prolong the mortgage finance Bubble. The number that matters today is probably around $3.5 TN annually. And the inescapable problem is that to continue a massive late-cycle inflation of nonproductive Credit feeding a deeply maladjusted system risks a systemic crisis of confidence – crises of confidence in the markets, in policymaking, in debt structures, and the monetary system more generally.

There is no alternative. The system faces an extremely challenging adjustment period. Today’s banking crisis is only the initial phase. There are no easy answers or painless solutions. And I’m assuming a plethora of bad ideas (i.e., short selling bans, system-wide deposit guarantees, larger lending facilities, additional QE and who knows what) will only make for a more destabilizing day of reckoning”