Thanks for your comments and the comments by others who have actually spent time in the audit trenches.
When a bank borrows billions in short term demand deposits and then lends those billions in 30 year bonds and mortgages, that is a major red flag to me.
I have heard that the US banks are in the range of $2 to $3 trillion under water when their bond/mortgage portfolios are marked to market.
It sure looks like the FED will be doing another multi-trillion dollar quantitative easing where they buy these underwater bonds/mortgages from the banks.
“I have heard that the US banks are in the range of $2 to $3 trillion under water when their bond/mortgage portfolios are marked to market.
It sure looks like the FED will be doing another multi-trillion dollar quantitative easing where they buy these underwater bonds/mortgages from the banks.”
Good post.
The Fed and Treasury have a very simple plan—the same one they have had since 2008.
Kick the can down the road—as long as you can—as quietly as you can.
The idea is they don’t want the herd getting spooked.
For individuals my advice is to focus on minimizing expenses.
If you do that you will not be tempted to take investing risks.
Get your cost of living as low as you can—so when hard times do hit—and they will—you do not face a major reduction in your standard of living.