Bank of America’s sitting on $700B in bonds bought at 1% yields in 2020. Those bonds are down ~40%, hiding $100B in losses. Meanwhile, the Treasury needs to refinance $9T and issue $2.5T in new debt this year. Foreign buyers like China are dumping Treasuries for gold. If Trump disrupts this debt recycling, we’re staring at a failed auction or Fed QE that’ll spike inflation expectations. When yields hit 7-10%, Bank of America’s equity won’t survive. A run on the bank? ATMs down? It’s not “if” but “when.” Fractional reserve banking fails-it’s built to. See 1932.
Bank of America’s sitting on $700B in bonds bought at 1% yields in 2020. Those bonds are down ~40%, hiding $100B in losses. Meanwhile, the Treasury needs to refinance $9T and issue $2.5T in new debt this year. Foreign buyers like China are dumping Treasuries for gold. If Trump… pic.twitter.com/KBKSXORzIW
— Porter Stansberry (@porterstansb) May 16, 2025