[PK1991]

Don't worry, "the banking system remains sound."

[cp124]

Faux Business will declare the banking crisis is over. It will be the 3rd time in the last 3 weeks they have made that claim.

[ClearCase_guy]

Not my field, and perhaps this is sort of “how it’s supposed to work” but this feels odd.

I see the government seizing a bank through its regulatory power. Basically nationalizing the bank. But then selling the bank to good ol’ JP Morgan. The outcome may, I suppose, be beneficial — but this seems like yet another collaboration between Big Business and Big Government where a powerful central government is able to shift financial power to its friends in order to further political goals. Doesn’t seem terribly “free market” to me.

[Rdct29]

I was watching an interview with Elon Musk last night where he explained a little bit about the economy. Two big problems for banks are commercial real estate and regular home sales. Covid policies did long term damage to commercial real estate with the work from home mandates. That created a lot of vacancies in cities. Commercial real estate is usually the best rated investments banks own. Now it's a major problem for banks. If rising interest rates continue the housing market will become a big problem as well. Add inflation to the mix and we have big problems. The only way to stop inflation is to raise production and services or decrease money supply. We know Biden won't increase production.

[sauropod]

.

[VTenigma]

Nothing to see here, this is all normal, we have it under control. There is no financial crisis.

[ding_dong_daddy_from_dumas]

Don't worry, "the banking system remains sound."

Let's look at this graph in 10 years to see if the red line follows the green line as in 2007:

Bank Failures in Brief – Summary 2001 through 2023