- Three of the four largest bank failures ever happened in in 2023.
- Should you care?
- What is the fallout?
- What to do? The Bottom-line
- What’s the real rate of inflation if we use the calculations from 1980?
Should you care that three of the four largest bank failures happened in 2023. Certainly. Yet the government projects that all is well. It is not. All banks that hold US Treasuries as a reserve currency are in similar positions. It is only how they report holding the assets that determines the price at which they are held that determines the liquidity pricing of te treasury bond. If they are classified as long term assets, Banks can carry them on their books at the maturity value. As soon as the banks have a need to sell the bonds, as in a run on the bank the bonds are then re-rated to their “market price of call a marked to market price. These now prices at 50% less than their maturity value as in the case of 20 plus years and longer bonds. Snap your fingers and now the banks are insolvent. Many more banks are insolvent as soon as they need to Continue reading
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