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What banking sector? I think until the AT1 bond lawsuit gets resolved with a win for the bond holders, all but the biggest banks have serious liquidity issues.
by eftychis 3y ago
What banking sector? I think until the AT1 bond lawsuit gets resolved with a win for the bond holders, all but the biggest banks have serious liquidity issues. There is not going to be a sector but a few chosen survivor banks and some lucky ones.
Private banks are the ones that "print" the money -- common misconception on who does. Fed is saying "well someone needs to lose the money or I will keep increasing rates (until I break the game)" while FDIC and executive branch are saying "nobody will lose any money."
Who do you think is going to win this game of chicken?
We need actions at the speed of "light" compared to Congress speed. That is the reason Congress does not directly handle these issues but a third party, the Federal Reserve, does.
We are practically waiting for the real estate sector to collapse, commercial first, and that money to disappear right now.