The bond credit ratings companies are always slow to adjust. There will be many more bank failures in the next 24-36 months.
Probably every regional bank with exposure to commercial real estate should be downgraded at this point.
— Wall Street Silver (@WallStreetSilv) August 9, 2023
Fitch delayed the U.S. credit rating downgrade for 2 months pureposely. Now the government will use it to justify the shutdown.
They're building the narrative for market panic which will force nations to dump U.S. treasuries, then they'll buy all their debt at bargain prices 👇 t.co/TDdTFR5SHQ
— Financelot (@FinanceLancelot) August 9, 2023
This chart shows why Moody’s is worried about banks…
- A new issue highlighted by Moody’s may cast a pall over banks: They’ve been forced to pay customers more for deposits at a pace that outstrips growth in what they earn from loans.
- The boost from higher rates was fleeting, evaporating in the first quarter of this year, when bank failures jolted depositors out of their complacency and growth in net interest margin turned negative.
- In company-specific reports, Moody’s said it had place U.S. Bank under review for a downgrade for reasons including its “rising deposit costs and increased use of wholesale funding.”
Qualifying for a mortgage is getting harder, as credit availability is the tightest in a decade