The Fed is losing $723 million per day to prevent a system collapse

Sharing is Caring!



See also  YouTube allegedly censored a Joe Rogan-Trump video with 33 million views

twitter.com/FinanceLancelot/status/1707817372529185124

Moody’s Sounds Alarm Over ‘Systemic Risk’ in U.S. Leveraged Lending Market

Moody’s warns of escalating systemic risks in the US financial system due to a “race to the bottom” between banks and private credit funds backing high-risk leveraged buyouts. With worsening economic conditions, there’s a surge in banks and private debt sectors financing subpar deals. As private equity picks up pace and hunts bigger deals, banks attempt to reclaim their dominant position in the buyout business. However, this aggressive competition could degrade pricing, terms, and credit quality, magnifying systemic risks, especially in an already fragile economy facing rising interest rates.

Bank Credit Growth Slows To -0.5% YoY, Every Monthly Payrolls Print In 2023 Has Been Revised Lower

Under Bidenomics, bank credit growth fell by 0.5% YoY. Recent data reveals that the perceived robustness of the Bidenomics economy is short-lived, with figures typically revised downwards after initial positive announcements. This trend is evident in the U.S. labor data, where every monthly payrolls report in 2023 has seen subsequent downward revisions. Future revisions to payrolls also seem likely.

Banks’ Ongoing Demand for Fed’s Emergency Funds at Near-Record Level

US money market funds saw a $6.3BN inflow this week, nearing record highs after a previous outflow. Retail funds increased by $7.8BN, but institutional funds declined by $1.5BN. The Fed’s balance sheet shrank by $22BN, its smallest since June 2021. The emergency funding facility use remains at a high of $108BN. Concerns grow as banks might face a $108BN deficit soon, possibly leading to prolonged use of the “emergency” facility in an election year.

Views: 384

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.