Kinesis on Nostr: Both Powell and Yellen say they are not worried about a repeat of 2008, and admit ...
Both Powell and Yellen say they are not worried about a repeat of 2008, and admit many small and regionals will face “issues” (eg will go under). This won’t bring down their banking system immediately because the TBTF banks don’t have the risk exposure.
Just like the Cleveland banks of 1930, the uninsured depositors will be wiped, their loans though won’t be wiped, they will be sold to JP and the like to collect on the loans and warehouse insured deposits.
Meanwhile JP is expanding its small bank footprint https://www.zerohedge.com/markets/jpmorgan-chase-plans-massive-branch-network-expansion-while-small-banks-implode
Just like the Cleveland banks of 1930, the uninsured depositors will be wiped, their loans though won’t be wiped, they will be sold to JP and the like to collect on the loans and warehouse insured deposits.
Meanwhile JP is expanding its small bank footprint https://www.zerohedge.com/markets/jpmorgan-chase-plans-massive-branch-network-expansion-while-small-banks-implode