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Unexpectedly, the banking crisis has not yet ended.
A well-known financial rating company called Moody’s recently downgraded the outlooks of a number of significant US banks. J.P. The agency issued a negative outlook for Bank of America, Wells Fargo, and Morgan & Chase.
The agency blames the unfavorable prognosis on the confluence of high interest rates and excessive debt.
Here at WLTR, we’ve always encouraged our readers to get ready for the possibility of bank failures and the revelation of the US financial system and money as complex Ponzi schemes.
Notice: The information below is not intended to be financial advice. It’s a gentle reminder to educate yourself and weigh your options carefully before choosing a custodian for your hard-earned money, or even before deciding whether to have one at all.
If you have any concerns about the unmanageable debt situation in the banking industry and the larger U.S. economy, kindly review these reports and let us know.
This Market Watch report was featured on Morning Star:
Analyst Peter E. Nerby stated in a research note published on Monday that Moody’s negative outlook on bank debt “highlights the potential decrease in the US government’s ability to support key American banks.”
For the macro profile of the US banking system, Moody’s has continued to award the system a “Strong+” rating.
A well-known financial newsletter called The Kobeissi Letter clarified:
“US bank stocks remain stagnant since the regional banking crisis and are currently at historic lows compared to the S&P 500. Disturbingly, respected credit rating agency Moody’s reports that major US banks are burdened with an alarming $650 billion in unrealized losses.”
With the impending commercial real estate (CRE) crisis, small banks are feeling uneasy. Currently, these banks hold about 70% of the $1.5 trillion in CRE loans in the US, which will need to be refinanced by 2025. The markets, however, are still not persuaded that the crisis has been resolved.
Reuters reports:
But Moody’s issued a warning, saying that in the current environment of high interest rates, banks with sizable unrealized losses that are not taken into account in their regulatory capital ratios may lose the trust of investors.
A detailed report outlining the effects on borrowing and demand has been released amid a period of tightening monetary conditions brought on by the Federal Reserve’s swift interest rate increases.
LINKED:
Is Bank of America “Very Near Bankrupt”? Is a Bank Run Possible?
Last night, I covered a story regarding the $650 BILLION in “unrealized losses” that the US Big Banks are about to receive.
Amazing tale!
In the event that you missed it, I’ll include the entire report below.
But the main thing I want to focus on is a couple of quotes from a Yahoo News article that I highlighted in that specific story.
Because almost enough attention isn’t being paid to it.
This statement from Larry McDonald asserts that, with a 6% Fed Funds rate, Bank of America is INSOLVENT.
Go over that again.
In one sentence, BOA and INSOLVENT!
Thus, “what is the current Fed Funds Rate?” may be on your mind.
5.5% is the amount.
Inexplicably near INSOLVENT.
Whoa.
He posted it to Twitter so you can view it directly here, but he was quoted in the article I’ll show you below.
Further information here:
Of course, The Simpsons also made an advance prediction:
Are there going to be bank runs?
Here is my original report, which has a lot more details.
If you have a sizable amount of money in a bank, I strongly advise you to read this through and act right away.
Down below, I have an answer for you.
CRASH IN THE BOND MARKET? “Big Banks Have Unrealized Losses of $650 Billion.”
I previously shared with you the news that Moody’s has downgraded the US to a “Negative” outlook earlier today.
The Americas as a whole.
Unbelievable.
However, we have been alerting you to this threat as loudly as we possibly could!
In case you missed it, there’s more about that below.
However, there is more bad news available today.
No people, almost everywhere you look now appears extremely ugly.
We recently experienced this—FEDWIRE going down, significant problems, and hacking reports:
Doesn’t it seem like they’re almost ready to replace the current system with a new one and turn off the current one?
One that makes use of cryptocurrency, gold, and silver?
Hey, what do I know? I might be completely mistaken, but it sure seems that way to me!
Ultimately, this occurred last Friday:
Recall that.
It certainly appears that they enjoy testing—or breaking—these things on Fridays.
Things that evoke a “hmmmmmm” feeling.
Perhaps a more significant story is the approaching collapse of the bond market.
You may not be familiar with bonds or their workings, but trust me when I say that this is unprecedented, historic, and extremely bad.
This time, unlike the last, “bond vigilantes” aren’t coming to save the day.
Regarding the painters:
Huge report published earlier on Yahoo:
Here’s more from Yahoo News about the $650 BILLION in unpaid losses. Gee, do you think that will be an issue or something?
Silicon Valley Bank collapsed in March due to plunging bond prices, and there’s a good chance that the same factors that brought down the California lender could be plaguing Wall Street once more.
Some of the biggest financial institutions have been severely impacted by the brutal Treasury-market meltdown, which has caused major names’ share prices to plummet, including Bank of America. This has also stoked concerns that the turmoil sparked by SVB’s bankruptcy may not be over yet.
All the information you require about unrealized losses is provided here, including the reasons behind their drag on bank stocks and their potential to spark another financial crisis.
Unexpected losses
Since the start of the pandemic, investors have been worried about rising interest rates and the sustainability of the US’s enormous deficit. Treasury bonds are debt instruments the government issues to fund its spending.
Since April 2020, BlackRock’s iShares 20+ Year Treasury fund, which tracks the price of longer-term debt, has fallen 48%. In the meantime, 10-year Treasury yields, which follow price movements, recently rose above 5% for the first time in sixteen years.
Some of the largest banks in the US are currently sitting on unrealized, or “paper,” losses totaling hundreds of billions of dollars as a result of that sell-off. This indicates that even though the value of their bond holdings has decreased, they have decided to hang onto their investments instead of selling them.
According to Moody’s estimate from last month, by September 30th, US financial institutions would have incurred $650 billion in paper losses on their portfolios, a 15% increase from June 30th. The data provided by the ratings agency is still unaccountable for the terrible month of October, during which the bond prices’ longer-term decline turned into one of the worst collapses in market history.
But these “losses” are not the same as debt, which is the term for real borrowings with repayment obligations.
The major lender most negatively impacted by the bond market meltdown is Bank of America, which last month revealed a possible $130 billion hole in its balance sheet.
Based on their second- and third-quarter earnings reports, the other “Big Four” banks, Citigroup, JPMorgan Chase, and Wells Fargo, have also accumulated unrealized losses in the tens of billions.
Another crisis a la SVB?
Following the disclosure of a $1.8 billion loss on its own bond portfolio, which resulted in a run on deposits, Silicon Valley Bank failed in March. In a similar vein, Wall Street doomsayers are becoming concerned about the large unrealized losses of big banks.
“‘Higher for longer’ is absurd baloney,” the market vet Larry McDonald said in a post on X Sunday, referring to the Fed signaling it would hold interest rates at about their current level well into 2024 in a bid to kill off inflation. “A 6% + Fed funds and Bank of America is near insolvency.”
It’s critical to keep in mind that BofA has unrealized $130 billion in losses. It isn’t technically in the red yet, unlike SVB, because it hasn’t sold its bond holdings.
During last month’s earnings call, the bank’s chief financial officer, Alastair Borthwick, dismissed concerns raised by the market by pointing out that the majority of the fixed-income portfolio consisted of low-risk government bonds that the bank intended to hold until the debt matured.
“All of these are unrealized losses are on government-guaranteed securities,” he told reporters. “Because we’re holding them to maturity, we will anticipate that we’ll have zero losses over time.”
Though it hasn’t happened, there’s still a chance that alarmed BofA clients will withdraw their funds in large quantities, as they did with SVB. In actuality, deposits have increased following the third quarter’s roughly 200,000 new account registrations.
Go over the final section that I bolded.
Hello everyone, Yahoo News is speculating that a bank run on Bank of America might occur shortly!
Without a doubt, that would be the Black Swan event.
What would likely occur after that, in your opinion?
Incredibly frightening.
All of this follows the report from earlier today:
MOOD’S DOWNgrades USA outlook to “Negative”
It seems like I have to bring you a new breaking story about our economy collapsing on a daily basis.
That shouldn’t be shocking, of course, given the deliberate devastation the Biden Regime caused, but the recent announcement is being referred to as “dropping a nuke” in terms of money.
The USA outlook was downgraded by leading rating agency Moody’s.
The cut to “NEGATIVE OUTLOOK” is what you might be thinking—that we went from AAA+ to AAA or something.
America the United States!
They adore dropping bombs late on Fridays, as I previously mentioned:
Whoa, friend, is Black Monday coming up?
Here’s more information on this breaking story from CNBC:
The United States government’s rating outlook was downgraded by Moody’s Investors Service on Friday from stable to negative due to growing threats to the country’s fiscal stability.
The U.S.’s senior unsecured and long-term issuer ratings have been confirmed by the ratings agency at Aaa.
“In the context of higher interest rates, without effective fiscal policy measures to reduce government spending or increase revenues,” the agency said. “Moody’s expects that the US’ fiscal deficits will remain very large, significantly weakening debt affordability.”
According to Moody’s, Washington’s brinkmanship has also played a role.
“Continued political polarization within US Congress raises the risk that successive governments will not be able to reach consensus on a fiscal plan to slow the decline in debt affordability,” the ratings agency said.
Regarding maintaining the country’s Aaa ratings, Moody’s stated that it anticipates the United States to “maintain its exceptional economic strength.” The agency added, “Further positive growth surprises over the medium term could at least slow the deterioration in debt affordability.”
“While the statement by Moody’s maintains the United States’ Aaa rating, we disagree with the shift to a negative outlook,” said Deputy Secretary of the Treasury Wally Adeyemo in a statement. “The American economy remains strong, and Treasury securities are the world’s preeminent safe and liquid asset.”
In actuality, Moody’s was the SECOND major rating agency to downgrade the USA.
First was Fitch:
USD DEPRECIATION Owing To “Governance Deterioration”
It’s possible that you missed something significant that happened yesterday amid all the coverage of Trump’s arraignment.
It was, in fact, something we had been alerting you to for quite some time.
In particular, Bo Polny has been warning you that the Dollar is going to crash for almost two years now.
When he initially stated it, many believed he was insane.
Now?
It doesn’t look nearly as crazy now.
Particularly considering what transpired yesterday.
The U.S. credit rating was recently downgraded by Fitch. US dollar.
And just in case you’re a little confused by all of this and your eyes have glazed over a little, let me explain everything to you in plain English.
Have you ever purchased a home or a vehicle?
What factors does the bank consider when granting you a loan?
Your credit rating.
Apparently, the United States has a credit score, just like you do.
Additionally, that credit score dropped.
That really shouldn’t come as a huge surprise because this graph illustrates how the U.S. In contrast to a family budget, the government manages its own.
Thus, it uses the American ratios. The budget and spending of the government are compared to what a family earning the US median income would see.
The outcomes are astounding:
Could someone with these numbers get a loan from a bank?
No way.
Not in a millennium.
Thus, why do other nations continue to trust the United States? One dollar?
“The full faith and credit of the U.S. Government” is the sole and simple explanation.
Put differently, foreign nations and investors have faith in the U.S. The government will always find a way to pay its bills.
And as of right now, the U.S. Government has never been in arrears.
However, the moment that assurance and faith in the U.S. Does government disappear?
BOOM: The U.S. will suddenly and sharply crash. US dollar.
That’s the reason this downgrade matters so much.
Since “governance deterioration” is listed as one of the primary causes:
To put it plainly: we are now LESS certain that the U.S. The country is being run so badly that in the future the government will actually pay its bills!
Hi there, Joe Biden!
It’s awful, as Kevin O’Leary affirms, “There’s no way to sugarcoat this.”
Remarkably, the U.S. There has only been one previous credit rating reduction in history.
Can you estimate the date of that?
2011.
Barack Hussein Obama was busy destroying this country in a manner similar to that of Joe Biden’s vice presidency.
Reuters has additional information:
On Wednesday, the dollar appreciated as investors disregarded Fitch’s downgrade of the U.S. credit rating. Meanwhile, data indicating a higher-than-expected increase in private payrolls in July supported the dollar by demonstrating the strength of the labor market.
According to the ADP National Employment report, private payrolls increased by 324,000 jobs last month, exceeding the 189,000 increase predicted by Reuters’ poll of economists.
Following a 525 basis point increase in interest rates by the Federal Reserve since March 2022, the U.S. labor market is progressively contracting. However, the GDPNow running estimate of real GDP growth for the third quarter, released by the Atlanta Fed, shows that the economy is still robust at 3.9%.
Michael Arone, chief investment strategist at Boston-based State Street Global Advisors, stated, “The market thinks that the Fed will continue to raise rates because the dollar is likely rising more in response to the economic data that is still stronger.”
“Those interest rate differentials compared to other countries will continue to expand or be strong,” he said. “The dollar is getting a rally, in conjunction with a little bit of flight to safety.”
The U.S. currency’s value relative to six other currencies, the dollar index, increased by 0.57% to reach a new three-week high. Since July 18, the dollar index has increased by 3.0% from its 15-month low.
The United States was downgraded by Fitch on Tuesday from AAA to AA+, a move that shocked investors and sparked an outcry from the White House even though the debt ceiling crisis had been resolved two months prior.
What follows, then?
Crashing banks and “BAIL INS”
That’s what I hope will occur.
Ever heard of a “Bail In”?
Allow me to clarify…
SPECIAL ALERT: Bank “Bail-Ins” Are Here!
You’ve heard of bailouts for banks.
All of us were taught about those in 2008 or 2009.
As well as last weekend.
However, this time they’re going to introduce something fresh: Bank Bail-INS.
If you can withdraw the funds directly from your current bank account, why would you use money from Congress to save a bank?
Whoa, what a fresh idea!
Stated differently, this:
Though it’s a funny clip, this is not a joke.
This is not at all fake.
And once more, I’m alerting you to its impending arrival so that perhaps you can take precautions!
Not only am I talking about my wild ideas, but here’s one of the best financial YouTubers, Meet Kevin, discussing it:
And from a few days ago, my man Patrick Bet David as well:
Now take a look at this.
Video from Fed meetings behind closed doors has surfaced, in which officials discuss how they cannot possibly warn the public—that is, we cannot tell the public the truth—because doing so would trigger mass hysteria.
Amazing.
We will tell you the truth, even though they won’t.
Take note of this:
Further information here:
Why the new form of bailouts will be bank bail-ins:
It’s approaching:
ChatGPT is 100% aware of who they are:
Bank bail-ins are a way of solving financial problems for failing banks by making shareholders and creditors contribute to the recapitalization of the bank instead of depending only on public funds. Bondholders and depositors with amounts above a predetermined threshold who are among the bank’s creditors may have some or all of their holdings entirely written off or converted into bank equity during a bail-in.
This strategy places the onus of bearing the losses on the bank’s creditors and investors rather than on taxpayers to save them from having to bail out a failing bank. Bail-ins are typically perceived as a means of enhancing the accountability of banks and their investors as well as providing incentives for banks to behave more sensibly and effectively manage risks.
Several nations have enacted bail-ins as a component of their efforts to reform financial regulations in the wake of the 2008–2009 global financial crisis. For instance, the European Union implemented a bail-in framework in 2014 that mandates failing banks to address their financial difficulties with their own funds and resources before turning to the government for assistance.
To put it another way, imagine you had $100,000 in a bank account.
They simply decide one day that a “bail in” is required, and presto—you have $50,000. or $25,000.
But they will appreciate you fulfilling your patriotic obligation!
Whoa, people, it’s not me!
No way.
Going Crypto, Gold & Silver for me.
That’s just me, but I prefer to keep my money secure from robbers!
Further information is provided here:
Naturally, the government is warning you not to take your money out—it’s safe!
See, I’m not a financial advisor, so I can’t advise you on what to do.
But me specifically?
A significant portion of my assets are in cryptocurrency, and a smaller portion is in precious metals.
I try not to keep too much money in banks.
That’s exactly what gets me the most sleep at night.
For additional information on gold, see this:
This Is The Reason Behind Central Banks Acquiring As Much Gold As Possible, Plus What YOU Can Do!
Global central banks have been hoarding as much gold (and frequently silver) as they can without setting off alarms for the past year. We can now understand why.
The “elites” and the central bankers who run things behind the scenes predicted the recent bank runs and the ongoing collapse of the U.S. banking system. They anticipated it and realized that actual precious metals would be the best means of safeguarding their assets.
I’m delighted to introduce you to something I adore, if you’ve been waiting for me to give you advice on how YOU can defend your family and yourself!
Precious metals.
I recently spoke with Bo Polny about precious metals, and now, if you’re inclined, I’m going to present you with an immediate solution.
Through self-directed IRAs backed by actual precious metals, a conservative, faith-based precious metals company is currently assisting Americans in taking advantage of the expanding precious metals market. Furthermore, even though Genesis is not the only company offering this service, they are uniquely qualified to receive a sponsored recommendation from this website because of their commitment to biblical money management.
In contrast to most businesses providing comparable services, Genesis exclusively works with real precious metals. They don’t sell “paper” or “virtual” gold or silver.
Customers of Genesis and their depositories have the ability to view and handle the precious metals supporting their retirement accounts. Genesis customers have the option to have their precious metals delivered to their door or to cash in some or all of them when it’s time to take distributions.
The central bankers are not taking it easy. Actually, states in the United States like Tennessee as well as countries like China are quietly and swiftly amassing gold reserves to support their own treasuries. This is the writing on the wall, so it makes sense that these governments are acting swiftly to avert any impending financial disasters.
The best way for our readers to investigate the physical precious metals market through self-directed IRAs is to work with Genesis. Our readers’ business with this America-First company benefits us as well.
Go to genesiswlt.com or give 866-292-0443 a call right now.
Waiting too long could lead to more bank failures in the near future.
What, precisely, has never “failed”?
Gold. precious metals. Unbreakable.
They refer to it as “God’s money” for a reason.
View this to learn more:
