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- U.S. Banks Are Sitting on $650 Billion in Unrealized Losses, and That Means Disaster is Just a Bank Run Away
U.S. Banks Are Sitting on $650 Billion in Unrealized Losses, and That Means Disaster is Just a Bank Run Away
by Michael Snyder The Economic Collapse Blog
Our economy runs on credit, and our banks are the beating heart of that system. Without healthy banks, how would Americans buy homes, purchase vehicles or get credit cards? The way that our system is currently constructed, it is absolutely imperative for our banks to function properly. Unfortunately, the truth is that our banks have gotten into deep financial trouble. They are sitting on hundreds of billions of dollars in unrealized losses, and the primary reason why those losses have become so large is because we have witnessed a historic bond market crash over the past several years…
Treasury bonds — debt instruments the government issues to fund its spending — have been on a nightmarish run since the onset of the pandemic, with investors fretting about rising interest rates and the long-term viability of the US’s massive deficit.