Small banks now hold a massive $1.9 TRILLION of commercial real estate (CRE) loans.
This is up nearly $1 trillion since 2017 while large bank exposure stood flat.
CRE is also dealing with mass vacancies and prices are down 20%+ in 1 year.
The worst part?
Over $1.5 trillion of CRE loans are due to be refinanced by 2025.
Many of these loans have seen rates nearly double.
Higher rates, falling prices and mass vacancies.
All with record levels of exposure to the same banks that almost collapsed this year.
What could possibly go wrong?
I think the bond market is misreading the @federalreserve. This is likely due to Powell’s communication style and some wishful thinking on the part of investors. Inflation is out of control and inflationary expectations have become unanchored.
BAD News. Depression coming. Your most important assets will be your 5 close friends. They could also be your liabilities. Q: Are 5 friends E-S-B-I?
My 5 friends & wife Kim made me richer in worst of times. Would not have made it without them. Study, Learn. Good luck. Take care.
In fact, the administration tried hard to inject even more stimulus into an already over-heated, inflationary economy and only Manchin saved them from themselves. Inflation is a regressive tax that most hurts the least affluent. Misdirection doesn’t help the country.
Censorship is the playbook of dictators, autocrats, fascists, despots, etc. It is antithetical to the Scientific Revolution and Enlightenment. It is for cowards. It is a position of weakness and never works long-term. Free speech is the disinfectant.
So, @elonmusk tries to buy Twitter. Suddenly the gov't wants to open an investigation. Yet members of Congress are becoming multi-millionairs on a salary around $150k without being investigated.
Why is that?
Terra just completed another ~ $139 million purchase of bitcoin.
That is more than 3x the daily incoming supply.
There is not enough bitcoin available to support this type of persistent buyer.
Last week the Fed's balance sheet rose another $33 billion to a record $8.911 trillion. How can anyone believe the #Fed will fight #inflation when it's still creating more of it? Even if the Fed temporarily stops future QE, the #CPI still has a long way to rise based on past QE!
The Durham investigation has shown that the biggest threat to our democracy is not some foreign country, but rather the Power Elite led by the likes of Hillary Clinton and her co-conspirators in the mainstream media & security state who work to undermine our democracy from within
Q: What is the opposite of FREEDOM? A: FASCISM. Scratch the skin of a liberal elite academic they bleed the blood of fascism. That’s why schools teach you nothing about money. Academic elites want you to be a slave to money. Don’t be a slave. Fight for your financial freedom.