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$517,000,000,000 in Unrealized Losses Hit US Banking System, FDIC Says 63 Lenders on Brink of Insolvency

ozcopper

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Unrealized losses in the US banking system are once again on the rise, according to new numbers from the Federal Deposit Insurance Corporation (FDIC).
In its Quarterly Banking Profile report, the FDIC says banks are now saddled with more than half a trillion dollars in paper losses on their balance sheets, due largely to exposure to the residential real estate market.

Unrealized losses represent the difference between the price banks paid for securities and the current market value of those assets.
Although banks can hold securities until they mature without marking them to market on their balance sheets, unrealized losses can become an extreme liability when banks need liquidity.
“Unrealized losses on available-for-sale and held-to-maturity securities increased by $39 billion to $517 billion in the first quarter. Higher unrealized losses on residential mortgage-backed securities, resulting from higher mortgage rates in the first quarter, drove the overall increase. This is the ninth straight quarter of unusually high unrealized losses since the Federal Reserve began to raise interest rates in first quarter 2022.”

More: https://dailyhodl.com/2024/06/02/51...fdic-warns-63-lenders-on-brink-of-insolvency/
 
As long as we keep bailing them out, they'll never learn.

I was listening to the radio on my drive today and I think they said something like 6/10 people are experiencing financial hardship and struggling to pay their debt.
I hate debt so much because it makes me feel trapped with limited options and freedoms. It's times like these that I'm grateful I have a zero debt policy.

In a perfect scenario, we could see a housing market collapse and a run on PM's simultaneously. One of my primary objectives for stacking has been to buy a house outright. No banks, no debt, no worries.

Lets Go Let The Games Begin GIF by CBS
 
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