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I read that there is lot of banks in the US and the world that have debt problem. But mainstream news is not talking about this or the government.
Just how bad is the banks in the US and the world the debt problem?
Why don't you go read their balance sheets?
This is the Economics Forum. You should know how to read the balance sheet of any bank governed by federal banking regulations or publicly-traded corporation. And, no, you won't find them on Pukipedia or Notreddit.
Seriously, you put your money in a bank but don't read its financial reports? Jeez.
This is the Economics Forum. You should know how to read the balance sheet of any bank governed by federal banking regulations or publicly-traded corporation. And, no, you won't find them on Pukipedia or Notreddit.
Seriously, you put your money in a bank but don't read its financial reports? Jeez.
What percentage of people do you think read a bank’s balance sheet before opening a bank account? I work for one of the big 4 banks, and I work in credit where I review balance sheets daily, and it never once occurred to me to look at my bank’s balance sheet.
There's no bank debt problem for US banks. The bank debt problem is for holders of US currency as that debt will be inflated away. Over the past 3 years, holders of US debt lost 30% of their value. See how easy that was?
This is the Economics Forum. You should know how to read the balance sheet of any bank governed by federal banking regulations or publicly-traded corporation. And, no, you won't find them on Pukipedia or Notreddit.
Seriously, you put your money in a bank but don't read its financial reports? Jeez.
Why would anyone read a bank's balance sheet if their deposits are FDIC insured? How many depositor's have more than $250K in any individual bank account? 2%?
Lack of liquidity as interest rates rise and lenders tighten is starting to squeeze many companies and smaller banks. Like a wildfire, a small default in some obscure place can spread quickly with consequences to larger entities. The Fed and other central banks think they can put out the flames, but who really knows? Ben Bernanke's hubris in 2007 where he claimed that the subprime mortgage problem was "contained" is a perfect example of Friedrich Hayek's warning to economists about the "Pretense of Knowledge". Then there is Janet Yellen's famous boast: "No new financial crisis in our lifetimes" ...
Today we see essentially worthless debts being used routinely for collateral. I guess it's OK as long as everybody pretends they have value.
Lack of liquidity as interest rates rise and lenders tighten is starting to squeeze many companies and smaller banks. Like a wildfire, a small default in some obscure place can spread quickly with consequences to larger entities. The Fed and other central banks think they can put out the flames, but who really knows? Ben Bernanke's hubris in 2007 where he claimed that the subprime mortgage problem was "contained" is a perfect example of Friedrich Hayek's warning to economists about the "Pretense of Knowledge". Then there is Janet Yellen's famous boast: "No new financial crisis in our lifetimes" ...
Today we see essentially worthless debts being used routinely for collateral. I guess it's OK as long as everybody pretends they have value.
The only thing being squeezed is inefficiency and useless workers who were pigging out at the trough like never before during the ZIRP era.
That said, the ratios only dipped a few basis points from the target value during the depths of the pandemic, so it seems the system is relatively robust.
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