Independent thinking for complex markets and current events
By Martin Armstrong I’ve long been sounding the alarm on the private debt crisis sweeping the Build Back Better nations. US government debt equaled 122.3% of the nation’s GDP in 2023, a cost that will be passed on to the taxpayers. As of Q1 2024, US household debt stood at $1.77 trillion; $12.44 trillion held …
A key U.S. regulator has privately found half of the major banks it oversees have an inadequate grasp of a broad swath of potential risks from cyber attacks to employee blunders, according to people familiar with the matter. In the confidential assessments, the Office of the Comptroller of the Currency said 11 of the 22 …
They backed a lot of bad real estate pic.twitter.com/789edqOWun — RICO TO TREASON (@F1sT) July 19, 2024
https://twitter.com/TuurDemeester/status/1813191213136150805
George and Ken discuss the CRE crash and how it’s now spewing into the banking system
Related: There have been reports that banks are preparing for potential economic challenges, including defaults. For example, major banks like JPMorgan Chase have been scenario-planning for potential U.S. credit defaults, which could have significant economic impacts. This preparation includes reviewing client contracts and assessing the potential effects on financial markets.
Recent earnings reports from major US banks have been disappointing, which has led to a decline in their stock prices. For example, JPMorgan Chase’s stock fell more than 5% after the bank forecasted lower-than-expected full-year income from interest payments. Similarly, Wells Fargo and Citigroup also saw declines despite some positive aspects in their reports. This has …
Western MSM minions like NYC, CNN, WSJ, BBC, DW etc are silent about whats happening in China. Because they get millions of dollars from Chinese companies. Its only because of whistle blowers and local translators through social media that this kind of news surfaces. — The Macro Story (@themacrostory) July 12, 2024 Background: China’s regulators …
🇨🇳 Why Chinese banks are now vanishing – The Economist*In the week ending June 24th, 40 Chinese banks vanished as they were absorbed into bigger ones.https://t.co/Zah97WGTZ4 — Christophe Barraud🛢🐳 (@C_Barraud) July 11, 2024 via MSN: The Chinese banking sector is facing a severe crisis. In just one week, 40 banks disappeared, and the collapse of …
The clock is ticking, problems may deepen Why do small banks have such big problems? Many Chinese cities and even entire regions are drowning in debt. The liabilities were so high that local government representatives sent envoys to Beijing in the spring. They are negotiating terms for repaying billions in loans. Unpaid debts are increasingly …
https://twitter.com/1CoastalJournal/status/1810684741739581808
Yet they are still allowed to do share buybacks and pay dividends with OUR taxpayer dollars. Why this doesn’t infuriate the country I’ll never understand. Just know that this is a giant scam funded by YOU and we do nothing to stop it. Meanwhile most Americans get poorer — QE Infinity (@StealthQE4) July 9, 2024 …
As of the first quarter of this year, several banks have faced significant unrealized losses that exceed their equity capital. Here are some notable examples: Union City SVGS Bank: Their unbooked losses equaled a staggering 172.7% of their equity capital. Citizens ST Bank: Unbooked losses at this bank reached 121.4% of their equity capital. Green …
The banks run the country pic.twitter.com/SnR6dttG3h — Wall Street Mav (@WallStreetMav) July 1, 2024
World Central Banks buying gold spree has been the longest since the 1950s and 1960s. As a result, Official world gold reserves reached 1,170 million fine troy ounces, higher than just before US President Richard Nixon broke the US Dollar's link to gold in 1971. Got gold? pic.twitter.com/LR8adyEJrh — Global Markets Investor (@GlobalMktObserv) June 28, …
https://www.youtube.com/watch?v=B7NwZ_LcLT8&t=16s Recent developments have had a profound impact on the U.S. economy. President Joe Biden has issued an unprecedented order to banks, surprising many and leaving experts scrambling to understand the implications. This comes at a time when the labor market, usually seen as a strong point in the economy, is showing signs of weakness. …
The Commodity Futures Trading Commission (CFTC) recently approved a final rule amending the capital and financial reporting requirements for Swap Dealers (SDs) and Major Swap Participants (MSPs) . These amendments aim to make it easier for SDs and MSPs to comply with the CFTC’s financial reporting obligations and demonstrate compliance with minimum capital requirements. Here are …
Some Wall Street banks are quietly offloading their portfolios of commercial real estate loans, hoping to cut their losses. These actions stem from concerns that landlords of vacant and struggling office buildings may not be able to pay off their mortgages. The broader distress in the commercial real estate market is driven by high interest …
Semiconductors getting demolished. Banks will lead now. That's the new bet. pic.twitter.com/QUxFt2lQ78 — Mac10 (@SuburbanDrone) June 24, 2024 We're going to need more bagholders. pic.twitter.com/V1KHIXHGTX — Mac10 (@SuburbanDrone) June 24, 2024 While everyone was focused on Nvidia, another well known $3 trillion stock just got downsized to 5% of XLK. pic.twitter.com/Hw3Z02FjV1 — Mac10 (@SuburbanDrone) June …
Let’s dive into the world of commercial real estate (CRE) loans and their current situation. CRE Loan Maturities in 2024: A Ballooning Challenge The portion of the $4.7 trillion in US commercial real estate debt that will come due this year has ballooned from $659 billion to $929 billion. These loans must be paid off through …
Central banks were recently asked why they buy gold. Their responses were not surprising but reassuring. Almost 50% of respondents cited three main reasons: No default risk. Strong performance during crises. Historical significance. In reality, no other asset matches gold’s… pic.twitter.com/G982GBnL0q — Otavio (Tavi) Costa (@TaviCosta) June 22, 2024 Central banks have indeed been increasing …
https://www.youtube.com/watch?v=F1OUZPwiD3Q Unrealized Losses: U.S. banks are grappling with significant unrealized losses, which have reached a staggering $517 billion. These losses primarily stem from their holdings in residential mortgage-backed securities. When interest rates rise, the value of these securities falls. While these losses are realized upon selling the securities, they can become a burden if banks need …
The top 4 @ISDA member banks with the HIGHEST amounts of DERIVATIVES 👇🏾👇🏾👇🏾 https://t.co/OopEpyvspm — PHIL 4 REAL (@StretchItSomeMo) June 21, 2024
Non-bank financial institutions are increasingly posing risks to America’s big banks, according to a post on the New York Fed’s Liberty Street Economics blog. During times of heightened market-wide stress, non-banks seek term loans and lines of credit, putting pressure on banks to provide liquidity. This reliance on big banks could lead to “vectors of shock …
https://www.youtube.com/watch?v=WERFY50cJt4 The financial situation in the United States is experiencing a significant change as major banks are selling off assets at an unprecedented rate. This move is caused by the imminent commercial real estate crisis, bad loans, and high interest rates. This situation is not just a financial maneuver but a response to deep-seated issues …
The 2024 Central Bank Gold Reserves (CBGR) survey conducted by the World Gold Council reveals that 29% of central bank respondents plan to increase their gold reserves in the next twelve months. This is the highest level observed since the survey began in 2018. The motivations behind these planned purchases include a desire to rebalance gold holdings, domestic gold production, and concerns related to financial markets, including …
Saudi Arabia has recently become a “full participant” in Project mBridge, a cross-border trial for central bank digital currencies (CBDCs) led by China. This collaboration, initiated in 2021, includes the central banks of China, Hong Kong, Thailand, and the United Arab Emirates. The Bank for International Settlements (BIS), which oversees the project, announced this development. …
According to a study by the Klaros Group, approximately 282 U.S. banks are currently facing stress due to two main factors: Commercial Real Estate (CRE) Exposure: These banks have significant exposure to commercial real estate loans. The value of these loans makes up more than 300% of their capital. CRE loans are tied to the performance of real estate properties, …
