Posted on 12/01/2023 8:00:12 AM PST by Kaiser8408a
Bidenomics is America’s Highway To Hell!
Unrealized losses on securities held by US banks exploded by 22% in the third quarter.
Of course, unrealized losses don’t really matter — until they do.
This is yet more evidence that the financial crisis that kicked off last March continues to bubble under the surface.
Unrealized losses, primarily on US Treasuries and mortgage-backed securities rose by $126 billion in Q3 and now total $684 billion, according to the FDIC’s quarterly bank data release.
Current unrealized losses are only slightly below the record set in the third quarter of 2022. This reflects the fact that the FDIC took over three failed banks earlier his year and ate their unrealized losses when it sold the banks’ assets, thus wiping them from the books.
Unrealized looses on securities are divided between two accounting methods.
Unrealized losses on held-to-maturity (HTM) securities jumped by $81 billion to $391 billion. Unrealized losses on available-for-sale (AFS) securities jumped by $45 billion to $293 billion. It’s important to understand these are only paper losses. Ostensibly, the banks will hold these bonds until maturity and then will be paid their face value. If it plays out this way, there won’t be any real losses.
Remember, the US is on the cusp of a REAL recession, thank to Bidenomics.
The spread between real GDP and real Gross Domestic Income (GDI) just hit an all-time high. Even higher than The Great Recession of 2009.
Might as well have AC/DC’s Angus Young as US Treasury Secretary instead of tone-deaf Janet Yellen.
Yellen singing “Highway To Beijing.”
(Excerpt) Read more at confoundedinterest.net ...
The obvious solution is to give more money to Ukraine. Then 10% for the Big guy.
There is a “stairway to heaven”, but a “highway to hell”: this represents the expected traffic pattern.
2023 is a bit reminiscent of 1929. The stock market was skyrocketing most of the year despite underlying economic realities and then came the terrible reckoning.
Nope, un-possible, the economy is on fire, 5.2% annualized GDP growth. Joe Biden told me so.
Bidenomics is simply more of the printing and spending we’ve seen since LBJ. Let’s not pretend this is a package of new ideas.
Printing money is making promises you can’t keep but the consequences are spread over the little guys.
That’s right, we need to seed billions more U.S. tax dollars to Ukraine...Ustinkistan etc...
Bump
This once great nation.. United States of America.. Is hanging by a thread.. With hopes we hang on till Trump is back..
The dems and joe/Barry have brought us to the end of stupidity and what it delivers.
I used to think when yoing w into adults, wisdom would prevail... It isn’t so!
What is so..stupidity.. Unbelievable dumb! Is in charge of the government.
Now I change message... The word, Stupidity, is giving them too much credit...
All this.. All you see, is done with full knowledge.. What they have.. What they have been working towards, is to have absolute control over you and yours.. The man Trump has been in their way. While you were complaining, they just hammered another nail in your coffin.
Get this one thing in your head!!!,, Trump is the only one you can trust.. Like it or not, he is able and we need him.
David was God’s choice.. In the midst of many.. In the midst of his 7 older brothers.. With all his faults even after the call..
God said you judge by looks.. God judges on the heart and are you willing to do what He asks.
I am a Trump supporter... He has been put thru more than any of you could stand against.. He hasn’t wilted.. Nor has he given up..
Pray for him...
Most of the losses described here could be a minor thing as they are just the difference between face value and mark to market. Thus they should be treated as illiquid assets until they mature, or to put it another way unless they need to be sold the losses are only theoretical.
Big issue I see is actually in the MBS portion of the losses, as there is one major factor that could make the losses real in a method out of the control of the bank: Are the Mortgages behind the MBS performing or not? Will they still be performing next year?
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