Biden couldn’t have done a better job destroying the US economy if he tried.
Earlier today, Moody’s dropped its rating for the Banking SEGMENT from stable to negative. This was a huge event that those in the banking and finance areas know is a very big deal.
DEVELOPING: Moody’s Cuts Outlook For Entire US Banking Sector, Puts Six Banks on ‘Downgrade’ Watch
Moody’s doesn’t downgrade entire segments without much thought and discussion on the matter.
CNBC reported:
“We have changed to negative from stable our outlook on the US banking system to reflect the rapid deterioration in the operating environment following deposit runs at Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank (SNY) and the failures of SVB and SNY,” Moody’s said in a report.
Moody’s rating was reported this morning on the War Room where Steve Cortes reported that Moody’s downgraded the banking segment due to a “rapidly deteriorating operating environment”:
This evening it was reported that US Banks currently have asset balances reported that are $2 Trillion less than their actual values. This is due to the manner in which companies report on their unrealized losses. The Daily Mail reports:
Assets held by America’s banks are worth a staggering $2 trillion less than stated in their accounts because of ‘unrealized losses’ like those which triggered the collapse of Silicon Valley Bank, a study suggests.
And a run on the banks would leave customers at nearly 200 institutions facing losses of up to $300 billion, according to the paper by leading finance academics.
The paper said the value of assets across the U.S. banking system is ‘$2 trillion lower than suggested by their book value’. Those assets include Treasury bonds whose value has decreased significantly across the past 12 months because of an aggressive campaign of interest hikes by the Federal Reserve.
This is a CRISIS.
Joe Hoft
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