With insolvency issues lurking beneath the surface, particularly driven by losses on older US Treasury bonds and commercial real estate loans. The Fed’s rate hikes could exacerbate these problems, potentially leading to significant losses for foreign banks.
I honestly think that at least half of the banking systems in Australia, Canada, China, EU, Japan, UK and US regional banks are already insolvent w losses on older US Treasury bonds & losses on commercial real estate or rest of loan books. They are just avoiding the market to…
— Jason Burack (@JasonEBurack) October 8, 2023
There are no mark to market losses for many banks yet, so they extend and pretend for now
— Jason Burack (@JasonEBurack) October 8, 2023
— Win Smart, CFA (@WinfieldSmart) October 8, 2023
We've added $513 billion in total debt over the past 18 days to an all time high $33.513 trillion.
It's a big deal t.co/ZEQvMZ6zSx
— zerohedge (@zerohedge) October 8, 2023
"Unprecedented" has been used to describe many events since 2020.
Much of these events have unfolded right here on X.
Unfortunately, instability continues to be a prevalent theme in the global landscape.
Follow us @KobeissiLetter for real time analysis as this develops.
— The Kobeissi Letter (@KobeissiLetter) October 8, 2023
Massive global deleveraging event created by the Fed. Nations will fall.
— Financelot (@FinanceLancelot) October 8, 2023