Is There A Financial Crisis Bubbling Under The Surface?

[tsptalk]

Is There A Financial Crisis Bubbling Under The Surface?

When the Federal Reserve started raising rates, it precipitated a financial crisis. The central bank managed to paper over the problem with a bailout program, but the crisis continues to bubble and percolate under the surface.

According to the latest data from the FDIC, the U.S. banking system is sitting on $517 billion in unrealized losses due to deteriorating bond portfolios.

Unrealized losses triggered the collapse of Silicon Valley Bank, Signature Bank, and First Republic Bank in 2023.

According to the FDIC, unrealized losses on available-for-sale and held-to-maturity securities increased by $39 billion in the first quarter. That’s an 8.1 percent increase.

It was the ninth straight quarter of “unusually high” unrealized losses corresponding with Fed monetary tightening that started in 2022.

Unrealized losses amount to 9.4 percent of the $5.47 trillion in securities held by commercial banks.

More: Is There A Financial Crisis Bubbling Under The Surface? | ZeroHedge

 

[FAAM]

Wow - Thx for posting that. Very interesting, & scary. Don't know what little ole me can do about it, except don't invest in commercial office real-estate bonds or ETFs, or perhaps in small to mid-size banks, be wary & nimble as possible over the next couple years (keep some powder dry?), & hope that one Jenga-block doesn't get pulled.

 

[tsptalk]

Yes, but keep in mind the original content of this article is from a website that sells gold / precious metals so, like everything else, keep an open mind with some skepticism.