Posted on 11/10/2023 5:08:31 AM PST by Jan_Sobieski
[…]
Small banks, the underdogs of the financial ecosystem, have been hit particularly hard. Rising interest rates, which should spell prosperity for these institutions, have instead become harbingers of doom. Take the sad tale of Iowa-based Citizens Bank. Once a pillar of its community, now the fifth to fall this year, it has been declared insolvent.
Regulators from the Iowa Division of Banking have unearthed significant loan losses, ones that had slithered undetected beneath the bank’s watch. Triggered by a spate of bankruptcies in the trucking sector, amidst a nationwide freight recession, the bank’s collapse is but a symptom of a much larger malaise.
The rising interest rates, which should be a boon in traditional economic models, have become a double-edged sword, particularly for banks deeply entangled in consumer debt, mortgages, and commercial real estate loans. Thousands of office blocks, once symbols of corporate might, now stand as hollow shells, monuments to a bygone era of bustling office life.
ALSO: Big Pharma Doesn’t Want You to Know About Alternative: How to Make Natural Morphine At Home Using This Powerful Medicinal Plant As remote work cements its place in the new world order, the fate of these buildings is sealed—their values poised to plummet, spelling disaster for the regional banks that are the bedrock of American finance. They now face the specter of crippling losses, a slow poison spreading through their ledgers.
The tightening of credit conditions spells a grim forecast for businesses across the spectrum. Bankruptcies loom on the horizon like storm clouds, ready to unleash a torrent of financial ruin. It’s a vicious cycle: borrowers default, banks falter, and the pillars of our financial system begin to crumble…
(Excerpt) Read more at amg-news.com ...
Now is the winter of our missed contents..................
Weakness in banking.
Weakness in manufacturing.
Weakness in transportation.
Delayed maintenance on an enormous scale.
If it was planned ... we would look to our leaders to fix the mess.
Oh yeah, weakness in our leaders.
I know manufacturers are under a lot of pricing pressure because of inflation in the price for raw materials to make product. Availability is a challenge to. No product, no sale, no jobs. But you can have an abortion anytime. Just keep voting democrat.
Tightening credit is necessary to counter profligate spending in DC.
XOh yeah, weakness in our leaders.”
Precisely where it all begins and ends.
Unexpected :)
It is crucial to make a clear distinction between operational technical issues and the overall financial stability of banks. While technical problems can be disruptive, they are not necessarily indicative of a bank’s financial health. Often, these glitches result from various factors that have no direct connection to the bank’s fiscal strength, such as routine software updates, potential cyber attacks, or simple human errors.
Recent discussions suggest that these outages might predominantly stem from cyber attacks, a separate concern from the banks’ financial solidity.
Looks like there have been four bank failures this year so far.
https://www.fdic.gov/bank/historical/bank/bfb2023.html
The Treasury gives special guarantees to both China and the Federal Employee Thrift Plan (Due to Larry Fink representing them) that they may redeem Treasury Securities at face value no matter the years to maturity. This sheltered the holder of the bonds from market value losses due to the rise in current interest rates when they were holding long term low yielding treasury bonds.
When the Democrat Silicon Valley Bank went under due to holding so many losses on long term treasury bonds, they allowed them the same deal to bail them out.
I’m not sure how many other entities or countries were offered the same deal as China, but the early redemption of these long term bonds could skyrocket our interest on our national debt as these long term low interest bonds are redeemed and refinanced at high current rates.
I expect that there is some special deal in the works to bail out the banks, just as they did Silicon Valley Bank.
I have Citizens Bank and just got a notification, yesterday, that my debit card is going to go from Visa to Mastercard.
I knew something was up.
Hitting close to home for both of us…
There is an even bigger catastrophe waiting to happen with all the off the books debt of the Federal Mortgage Associations. They are Government Agencies and their debt is not included in our National Debt. It is guaranteed by the US Government.
They loaned this money out in 30 year low interest mortgages, but borrowed the money short term. These short term bonds are now having to be refinanced at much higher rates.
What kind of idiot agency would lend long term at low rates and finance short term? They all did it. Freddie Mac, Ginnie May, Fannie May,.....
Well, at least you included the bit about pain meds, with your banks going out article. 😂
Don’t fret, WWIII will wipe out most debt and a lot of humanity…
A reset, if you will.
(WWIII will wipe out most debt)
I think TPTB want it to happen
For they know that their house of cards will fail
(I have Citizens Bank and just got a notification, yesterday, that my debit card is going to go from Visa to Mastercard)
What does that mean?
I think mine is MC but I’ll have to look again
The Biden EPA plan for electricity ensures high future inflation and is causing interest rates to be much higher.
But we should go all digital/online.
Remove merit from corporations, and give Shaqueefa the keys to everyone’s savings…
I’d like coins instead.
I just thought it odd to change debit cards for everyone.
I’ll do a little research. The mail was very vague and generic.
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