I agree about the delayed banking crisis. If bank portfolios are still losing value, how could there *not* eventually be a crisis? I get the sense that it’s been postponed *only* because “government stepped in with bandaids and hugs for crying bankers over their skinned knees” (I laughed out loud at that phrasing - thanks!).
I agree about the delayed banking crisis. If bank portfolios are still losing value, how could there *not* eventually be a crisis? I get the sense that it’s been postponed *only* because “government stepped in with bandaids and hugs for crying bankers over their skinned knees” (I laughed out loud at that phrasing - thanks!).
Oh there's no doubt that it's been postponed because of the government intervention. Hell, the government BRAGGED about the intervention!
But at the end of the day the Fed is still attempting right-size the money supply by introducing countervailing market disequilbria. That can only end with something breaking...like the banking system (again).
I agree about the delayed banking crisis. If bank portfolios are still losing value, how could there *not* eventually be a crisis? I get the sense that it’s been postponed *only* because “government stepped in with bandaids and hugs for crying bankers over their skinned knees” (I laughed out loud at that phrasing - thanks!).
Oh there's no doubt that it's been postponed because of the government intervention. Hell, the government BRAGGED about the intervention!
But at the end of the day the Fed is still attempting right-size the money supply by introducing countervailing market disequilbria. That can only end with something breaking...like the banking system (again).