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US banks hold over $600 Billion in unrealized losses

Posted on 3/21/23 at 7:40 am
Posted by stout
Smoking Crack with Hunter Biden
Member since Sep 2006
167101 posts
Posted on 3/21/23 at 7:40 am





Posted by Purple Spoon
Hoth
Member since Feb 2005
17769 posts
Posted on 3/21/23 at 7:41 am to
Nothing a couple hours in the printer room can’t solve.
Posted by TrueTiger
Chicken's most valuable
Member since Sep 2004
67657 posts
Posted on 3/21/23 at 7:42 am to
Joe can make good on that from his Ukraine fund.
Posted by OysterPoBoy
City of St. George
Member since Jul 2013
34988 posts
Posted on 3/21/23 at 7:42 am to
Shouldn’t whoever figured this out let them know?
Posted by roadGator
Member since Feb 2009
139780 posts
Posted on 3/21/23 at 7:43 am to
When Ukraine pays us back we will be fine.
Posted by The Baker
This is fine.
Member since Dec 2011
16160 posts
Posted on 3/21/23 at 7:43 am to
Us banks hold trillions in assets
Posted by stout
Smoking Crack with Hunter Biden
Member since Sep 2006
167101 posts
Posted on 3/21/23 at 7:43 am to
quote:

Shouldn’t whoever figured this out let them know?



I am sure they are aware

Now imagine what happens to these banks if people start pulling money out to hoard cash under their mattresses.
Posted by stout
Smoking Crack with Hunter Biden
Member since Sep 2006
167101 posts
Posted on 3/21/23 at 7:44 am to
quote:

Us banks hold trillions in assets




The big 4 do. Regional banks do not.

Posted by SingleMalt1973
Member since Feb 2022
11851 posts
Posted on 3/21/23 at 7:50 am to
It’s almost like perfect way to federalize the Banking System and move to digital currency/ ESG for all. …


This post was edited on 3/21/23 at 7:50 am
Posted by teke184
Zachary, LA
Member since Jan 2007
94846 posts
Posted on 3/21/23 at 7:51 am to
Anyone who thinks we should tax unrealized gains should be asked what they think about unrealized losses.
Posted by kingbob
Sorrento, LA
Member since Nov 2010
67006 posts
Posted on 3/21/23 at 7:51 am to
It’s almost like when the government bails out firms that take big gambles and lose, it encourages all their competitors to behave the same, inevitably resulting in an over-leveraged industry with no risk management and a massive speculative bubble.
Posted by azcatiger
somewhere
Member since Mar 2011
4471 posts
Posted on 3/21/23 at 7:55 am to
Banks are holding notes tied to commercial leases of office space all over the country. As these long term leases are not renewed or downsized due to these clowns still working from home the value of the properties will drop dramatically. If a bank holds a loan tied to an office property valued at 1 million, the current real value is much less and will only go down. These losses have to be realized at some point. That is the next big bubble.
Posted by GhostOfFreedom
Member since Jan 2021
11660 posts
Posted on 3/21/23 at 8:07 am to
Nobody wants to talk about the elephant in the room, but this seems to have started with the GameStop (and the meme stocks) squeeze in 2021. "Stock shorts have infinite loss potential."

If the theory holds, those with short positions on GameStop and the others, never wanted to take a loss and thought their long proven psychological and algorithmic theories would eventually crush the companies and their stocks, and they could walk away with a mountain of profit. They didn't close their positions. They "covered" them and double, and tripled down.

As the can kept getting kicked, the cost keeps accumulating.

Here is the decoupling of Credit Suisse and UBS. One had GameStop shorting bags, the other didn't. Now UBS has them, what will happen to UBS?



Posted by The Baker
This is fine.
Member since Dec 2011
16160 posts
Posted on 3/21/23 at 8:07 am to
quote:

The big 4 do. Regional banks do not.
does this chart include the big 4?
Posted by teke184
Zachary, LA
Member since Jan 2007
94846 posts
Posted on 3/21/23 at 8:09 am to
Remains to be seen but, given that UBS got CS at a heavy discount, they may take the “gains” to offset some of CS’s losses and staunch the bleeding.
Posted by jrobic4
Baton Rouge
Member since Aug 2011
6867 posts
Posted on 3/21/23 at 8:09 am to
quote:

had GameStop shorting


Nailed it! It has nothing to do with treasuries that are worth less on the open market than book value...
Posted by Bass Tiger
Member since Oct 2014
45986 posts
Posted on 3/21/23 at 8:14 am to
I think it's probably more than $600 billion. It would take a little work to add up all the low yield treasuries and bonds in all the banks across America to truly know how much bad crap is on their books.....I can guarantee their will be no call for mark to market accounting on this shite either.
Posted by DaBike
Member since Jan 2008
8965 posts
Posted on 3/21/23 at 8:18 am to
quote:

Us banks hold trillions in assets


Well, then there is no need for the US Gov/Tax payer to bail them out. They can sell those assets instead
Posted by Sp0728
Your head
Member since Aug 2018
1540 posts
Posted on 3/21/23 at 8:26 am to
I don’t think they realize this
Posted by Aubie Spr96
lolwut?
Member since Dec 2009
41066 posts
Posted on 3/21/23 at 8:33 am to
quote:

It has nothing to do with treasuries that are worth less on the open market than book value


Frankly, I'm amazed that more stuff hasn't broken up until now. You can't have zero percent interest rates, quantitative easing, and reckless gov't spending for 15 years and then do a sudden reverse course without breaking some eggs. We still have to pay for this and we haven't begun yet. Worst is yet to come.

Bloomberg Video on Bank Unrealized Losses
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