Morgan Stanley's Mike Wilson says "we are seeing a breakdown again in a lot of the stock market" pic.twitter.com/hEKNDO31rk
— Win Smart, CFA (@WinfieldSmart) September 26, 2023
$spx. We can see where it closes, but it looks to me like the neckline is broken on the #SP500 pic.twitter.com/UjfPujcYdW
— Michael J. Kramer (@MichaelMOTTCM) September 26, 2023
Warning: Banks are tightening lending standards at levels that have ALWAYS resulted in a recession pic.twitter.com/H2Y7636jPZ
— Game of Trades (@GameofTrades_) September 26, 2023
Credit ratings were cut on the highest number of commercial mortgage-backed securities in “recent memory” last week, according to strategists at Bank of America, $BAC
— unusual_whales (@unusual_whales) September 26, 2023
Ooof. Had to extend the vertical axis.
Bank unrealized losses have a similar profile (per FDIC). Now consider that over 40% of deposits are now uninsured, because someone has to hold the reserves the Fed forced into the system.
QE turned the economy into a quiet Ponzi scheme. pic.twitter.com/8a3UA6VaHx
— John P. Hussman, Ph.D. (@hussmanjp) September 26, 2023
US 2 Year Yield is approaching the top Bollinger while the Bollinger bands are closing.
A sudden reversal is coming like the past. pic.twitter.com/5CEiT7e4Vf
— Financelot (@FinanceLancelot) September 26, 2023
Philly Fed non-manufacturing activity fell further from -13.1 t0 -16.1. Global manufacturing outlook becoming rather poor on the whole now. pic.twitter.com/A8nA6ch6f1
— Longview Economics (@Lvieweconomics) September 26, 2023
Expectations falls. t.co/xOuDv3pQei pic.twitter.com/FpSGjtY51P
— Longview Economics (@Lvieweconomics) September 26, 2023
Tumbling Deposits, Rising Unrealized Losses: The Perfect Storm Hits Big Banks
JPMorgan Chase has controversially moved significant securities into the held-to-maturity (HTM) category, resulting in an unrealized loss of $36.7 billion. Many of these transfers weren’t initially designated as HTM. Despite these alarming practices, CEO Jamie Dimon challenges federal regulators’ efforts to increase capital levels for large banks. Widespread unrealized losses across the banking sector total $558.4 billion, with the 25 biggest banks also experiencing a $920 billion decline in deposits, intensifying concerns about the stability of the U.S. banking system.
Why Rising Long-Term Treasury Rates Could Ripple Across the Economy
Longer-term interest rates are surging, negatively impacting stocks and potentially the broader economy. The 10-year Treasury yield hit a 16-year high at 4.52%. This uptick threatens to further depress the housing market and deter corporate investments. Despite market concerns, Fed chair Jerome Powell appears unfazed, prompting critiques from experts who believe the Fed may be underestimating the impact of these rising yields.