1:23 - Global risk posed by U.S. banking system 2:30 - Repo crisis preceded PANDEMIC!!! 3:32 - WEF’s tote board of risk narratives 4:05 - F.D.I.C. Quarterly Banking Profile (3Q2022): real risk of banking crisis 5:26 - Chart 7 of Quarterly Banking Profile - massive balance sheet losses 8:41 - Why debt-based securities dropped in value by $690 billion 11:40 - Composite balance sheet (entire industry) in Quarterly Banking Profile 14:33 - Why assets on banks’ balance sheet are vastly over-valued 17:12 - That entire banking industry is dead broke, evident from composite liabilities 20:10 - Banks’ counter-measures to their insolvency 21:32 - FHLB advances: panic borrowing 24:57 - Repo market: more panic borrowing 26:54 - FRED’s tale of three crises 35:23 - Role of FHLB advances in last three crises 39:52 - Panic borrowing now - Fed fanning flames of new crisis 41:25 - New era has dawned: Snake Eating Its Own Tail This video builds on and extends the explosive (but largely overlooked AFAIK) analysis done by Chris Whalen, “Is JPMorgan Chase Insolvent?” While Whalen is imo the best independent bank analyst in the business, he doesn’t have a crystal ball. (At least I couldn’t find one when I ransacked his home many moons ago.) He put out that post, which is nominally about Dimon’s bank but covers the entire banking industry, on Monday, November 28, 2022. He thus didn’t have access to the F.D.I.C.’s Quarterly Banking Profile for the 3rd quarter of 2022, which came out three days later. Whalen’s analysis focused on the dubious valuations of bank assets, which is certainly germane as far as they go and are discussed in greater detail in this video. The real action in the third quarter QBP, though, is on the liability side of the industry’s balance sheet. There we find evidence that aside from being broke, the banks know they’re broke and are panicking about it. But here’s the real kicker: the Fed isn’t helping the banks this go-round. It’s a new ballgame, and it goes by the name ALL. BAD
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