Wait… the banks are insolvent?

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New York Federal Reserve president John Williams convened a meeting with Wall Street dealers this week over a key short-term lending facility, underscoring officials’ concerns about strains in US money markets.

The hastily arranged meeting, which has not been previously reported, took place on the sidelines of the Fed’s annual Treasury market conference on Wednesday, according to three people familiar with the matter.

It comes at a time when banks, investors and officials are concerned about signs of stress in an arcane, but vital corner of the US financial system.

Williams solicited feedback from primary dealers, mostly banks that underwrite the government’s debt, on the use of the Fed’s standing repo facility, which central bank officials describe as a crucial pressure relief valve to help them keep short-term borrowing costs within their target range.

https://www.ft.com/content/395f92e2-85f2-45f7-b140-5ee9ac689bc3

Mortgage defaults are rising around the country…

Alot more inventory will be on the market in the next few years as alot of covid era foreclosure protections end.

Some people haven’t paid a their mortgage in years because of these protections.

Distortions in the housing market are one of the prime reasons for this inflationary period.