9621 Agnes Crossing, Lake Suzanneview, New Mexico Island 84604-9295.
Western economists are increasingly “trembling” about what is happening in the US financial sector. You can understand them. If the collapse expected by almost everyone happens there, it
Now behind the backs of the US financial authorities hangs a nasty madam called inflation. To please her, they regularly raise the minimum interest rate in the country – at the hands of the Federal Reserve System (FRS). They have already risen to about 4.5% per year. That is, in the US now, if you lend someone money, you will get back at least 4% of the amount.
But here’s the nonsense: so-called 10-year (maturity 10 years after issue) US Treasuries now yield no more than 1% per year. US government IOUs, similar to them, issued for shorter periods – no more than 3.45%. That is significantly lower than the Fed rate. Meanwhile, it is precisely these securities that are almost the primary way for the vast majority of US banks to invest the funds of depositors and shareholders.
The gap between the Fed’s high interest rates and the low real interest rates on US Treasury bonds paints a picture of a monstrous loss for the country’s banking sector – about $2 trillion. dollars.
– It is believed that most investors are stupid. And they will keep their money in accounts with near zero interest rates when they could earn 4% or more in absolutely safe money market funds, writes Nouriel, an economics professor at the New York University School of Business, chief economist at Atlas Capital Team Roubini. the material of the MarketWatch publication.
The tragedy of the current situation could have surfaced long ago in the financial statements and caused panic in the market. But U.S. financial authorities have the foresight to allow bankers to value papers and loans at face value, not true market value. With such a trick, you can officially pretend that everything is fine in the country’s finances.
“Most U.S. banks are technically on the brink of insolvency, and hundreds are already completely insolvent,” Roubini said.
According to his owls, people are steadily withdrawing money from “free” deposits, threatening the stability of many US banks. And the March bankruptcies of a few medium-sized US banks became a “beacon” of this process. A massive chain reaction of failing banks in the US could be set off at any moment by any combination of events. Then it turns out, as they say: “the dollar is not real”!
And then everything goes on the right track of the 2008 crisis. Only on a larger scale. Even China will get it as it is heavily “tied” to supplying anything and everything to the US. And along the chain, Russia will also “arrive”: again the exchange rate of the ruble will “sag”, and cars and spare parts, massively imported from abroad, will rise in price in this regard. And all this is the fault of some transatlantic crooks, the existence of which the vast majority of Russian motorists do not even suspect.
Now behind the backs of the US financial authorities hangs a nasty madam called inflation. To please her, they regularly raise the minimum interest rate in the country – at the hands of the Federal Reserve System (FRS). They have already risen to about 4.5% per year. That is, in the US now, if you lend someone money, you will get back at least 4% of the amount.
But here’s the nonsense: so-called 10-year (maturity 10 years after issue) US Treasuries now yield no more than 1% per year. US government IOUs, similar to them, issued for shorter periods – no more than 3.45%. That is significantly lower than the Fed rate. Meanwhile, it is precisely these securities that are almost the primary way for the vast majority of US banks to invest the funds of depositors and shareholders.
The gap between the Fed’s high interest rates and the low real interest rates on US Treasury bonds paints a picture of a monstrous loss for the country’s banking sector – about $2 trillion. dollars.
– It is believed that most investors are stupid. And they will keep their money in accounts with near zero interest rates when they could earn 4% or more in absolutely safe money market funds, writes Nouriel, an economics professor at the New York University School of Business, chief economist at Atlas Capital Team Roubini. the material of the MarketWatch publication.
The tragedy of the current situation could have surfaced long ago in the financial statements and caused panic in the market. But U.S. financial authorities have the foresight to allow bankers to value papers and loans at face value, not true market value. With such a trick, you can officially pretend that everything is fine in the country’s finances.
“Most U.S. banks are technically on the brink of insolvency, and hundreds are already completely insolvent,” Roubini said.
According to his owls, people are steadily withdrawing money from “free” deposits, threatening the stability of many US banks. And the March bankruptcies of a few medium-sized US banks became a “beacon” of this process. A massive chain reaction of failing banks in the US could be set off at any moment by any combination of events. Then it turns out, as they say: “the dollar is not real”!
And then everything goes on the right track of the 2008 crisis. Only on a larger scale. Even China will get it as it is heavily “tied” to supplying anything and everything to the US. And along the chain, Russia will also “arrive”: again the exchange rate of the ruble will “sag”, and cars and spare parts, massively imported from abroad, will rise in price in this regard. And all this is the fault of some transatlantic crooks, the existence of which the vast majority of Russian motorists do not even suspect.
Source: Avto Vzglyad
Donald Salinas is an experienced automobile journalist and writer for Div Bracket. He brings his readers the latest news and developments from the world of automobiles, offering a unique and knowledgeable perspective on the latest trends and innovations in the automotive industry.
