👉 Banks Holiday , Financial Crash looming in the shadows

👉 Banks Holiday , Financial Crash looming in the shadows





The pandemic and the associated sharp contraction in the U.S. economy have abruptly ended a long period of good fortune for the US banks and created their greatest challenge since the 2008 financial crisis. The Big banks are set for the worst financial quarter since the financial crisis. In fact , as the big banks gear up for earnings season, many investors are anticipating the worst quarter for the banks since the financial crisis. We are going to have more loan pain but plenty of fee income. Q2 earnings should bring this market back to reality. It is going to be ugly. The Banks Report Earnings is coming next week, It Won’t Be Good. I suspect the rubber is about to hit the road hard. Too many people not paying rents. Too many people not paying mortgages. Too many small businesses are going bankrupt and leaving their loans uncollectable. Too many write-offs. All the liquidity in the world does not make up for actual losses on the balance sheet - every dollar borrowed is both a debt and an asset .When the mortgages go into bankruptcy suddenly you are staring at a balance sheet with a lot of debt and no asset. The books can be cooked - and they will make themselves look better, but ultimately all the cooking just makes things worse. Hold onto your butts; the bankers are about to squeal like pigs. The credit defaults will put a hit on banking. A huge jump in unemployment claims will spell the beginning, not the end of this crisis. The default will probably rise before the layoff/unemployment no. The negative demand shock will cause a sudden default to incorporate, then unemployment. That is what FED and the EU central bank is afraid of. Twenty-eight million, or one in five Americans who live in households that rent, are facing mass evictions. Half the country's rent moratoriums are over. Courts are filling up with eviction cases. And the problem gets worse, that is, because when rental income for landlords collapses, they will experience financial hardships as well, including servicing mortgage payments and inability to cover other building-related expenses (if those are fixed or variable costs). Over half of mortgage payers haven't made a payment in months. Even though most banks are only Servicing most mortgages and aren’t the owner/investor, the Banks still have to cover the first few months of delinquent mortgage payment per most investor contracts. That’s a serious coin for millions of mortgages if the borrower never cures the loan and defaults. Additionally, banks have to write down the value of their mortgage servicing rights when a loan defaults. All that said, it’s still better than being the investor backing the loan, but Banks still take a decent-sized hit when loans start going bad, even in relatively small numbers. Nearly 10% of overall bank funds are tied up in bonds and loans to the energy sector. At this time, with oil below $40, the Banks energy sector liability is incalculable. With more and more brick and mortar retailers going bankrupt ,resulting in more and more vacant stores in shopping centers and malls. The banks holding the loans on said properties could see many related commercial property loan defaults. No buyback equals no profits because banks always manipulate to make money on buyback buy low sell highs. So what does it mean for investors? Well, if there's no buyback, we know fed back up banks because fed planning or know things will drop a lot more. Fed does not want banks to buy back high, then it drops? Banks and corporations owned by fed and fed and corporations and banks owned by behind curtains world power. I am shocked that with 30 million unemployed, the economy stalled, oil cratered, and consumers confined to their homes, that banks aren't able to just hold a net out the window to catch all of the money falling from nearby trees and use it to record profits despite whatever is happening on the filthy little people milling about like zombies on the streets. And apparently, this is good news--with the market shooting higher every day. Still charging 25% interest rates to customers on credit card accounts, and now they want a backstop for potential losses while they borrow money at zero percent interest. Bottom line, savers and speculators are screwed by the banksters, who always get their way from the greatest inheritor of all time. It is good to be born well. Ask Baron. This is the price of debt-based wealth. Everything from cars to corporations is financed with massive amounts of credit. Entire countries are robbing Peter to pay Paul to the point where no one even knows who is paying for what, if anyone. It's like the entire world economy, and particularly the American is one big Ponzi scheme. The Feds are running the Banks as Russia and China do. Welcome to Communist America. The Fed's have turned into Socialist Communists and are running the banks. What is very obvious is the Fed has been loading the banks since last year through the Repo market, and it is well known on the street that banks needed liquidity. Covid-19 has really provided some "cover" for what was coming anyway. The explosion into vehicles to increase that liquidity, even in the form of "junk bond ETFs," further speaks to this reality. Net short, I'm happy to hold longs as well, but the transparency from the Fed speaks to desperation. Stress tests and meetings with the senate, just a dog and pony show for the public. Welcome back to The Atlantis Report. You are here for your daily dose of the truth, the whole truth, and nothing but the truth. Please take a second to smash that like button. And as You know friends, I rely totally on your donations to keep this channel functional, as you know, it takes a crazy amount of research and time to bring you this content on a daily basis, so I hope you consider helping with whatever donation you can afford. Thank You. If the current economic shock has taught us anything, it is that despite all the new controls rules regulations put in by Congress after the financial crisis,Wall Street always has a way of finding new and inventive ways of creating things to sell like the hundreds of billions of dollars in subprime mortgage-backed securities that basically broke bank balance sheets more than ten years ago. A similar but simpler Wall Street product needs to be on your radar if it's not already. You've probably heard about them. They're called collateralized loan obligations , or CLOs . No not CDOs. Those are collateralized debt obligations, which of course, just you know, help destroy the banking system in 2008. CLOs are bundles of business loans generally made to smaller or mid-sized companies some of whom have maybe trouble balance sheets or maxed out their own borrowing, can't sell bonds directly to investors or do not qualify for traditional bank loans. The banks are making mistakes similar to those leading up to the 2008 financial crisis. Only this time with this new type of security that could break bank balance sheets beyond repair. The only constant here is the taxpayer always pays for the sins of the rich. But hey, no worries, the Fed will bail all out. Fed has been buying bonds. Thus, these companies will be able to issue more bonds and pay back their debt to the banks. The banks also can sell off the bonds they're holding to Fed at a profit with near 0 rates. All win-win for everyone except the federal balance, which no one cares about. Debts no longer matter, employment no longer matters. Governments printing funny money no longer matters. Corporate losses, stores closing it does not matter. Dead bodies, mass graves, it does not matter. Welcome to the Twilight Zone. The Fed now needs to print faster! Fun facts: The Fed is not, I repeat not, a government agency and not part of the federal government at all. The Fed is a private institution run by private bankers, who have taken over the US governmental finance sector. The US constitution forbids anyone but the federal government from printing money. The US government does not print money. The Federal Reserve (a privately owned company) prints our money then loans it to the US government via treasury notes, and the US government pays interest on it. The US government pays interest on money it borrows from a private company. It allows it to print our money. Let that sink in and think about it. If the US government would simply print its own money, we would not be in the debt crisis we are in now. We live in an unofficial oligarchy. The democrats and republicans fight and debate on camera, but behind closed doors, both parties are on the same team, and the mainstream media stations will keep people divided by race and class, focusing on issues to distract all of us from focusing on what corporations and their politicians are doing behind the curtains. prepare for another downturn in the stock market as investors will soon realize the shape of the recovery is an "L" rather than the overhyped "V." As long as the central banks keep interfering with market forces. They're not only protecting their own portfolios by putting us deeper in debt, but they HAVE TO keep these equity and bond markets up. If they don't, they're going to have tens of millions of retirees who are suddenly insolvent. Everything will collapse, in some places more than others. In that case, no candidate from either party would be able to speak in public with hundreds of 60 somethings on up cussing them out non-stop. If they fail, they will simply be nowhere to be found. They'll be far away protected by isolation and private security. Oh, the local politicians will (mostly) be alright, because most everyone loves their local politicians and won't blame them like those in Washington. The others, the ones largely behind the scenes, most of us don't even know of anyway. This was The Atlantis Report. Please Like. Share. Leave me a comment. Subscribe. And please take some time to subscribe to my back up channels, I do upload videos there too. You'll find the links in the description box. You will also find a PayPal link if you want to make a donation. Thank you wholeheartedly to all those of you who have already donated. Stay safe and healthy friends!









Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics