https://www.fdic.gov/news/speeches/2024/fdic-quarterly-banking-profile-first-quarter-2024

  • comrade-bear@lemmygrad.ml
    ·
    4 months ago

    The scale of this graph is anxiety inducing, its at least an order of magnitude bigger than any other swing including crashes, which makes me think either there was a change and the thing going down is actually working out for the banks, or shit's about to go down hard

    • ☆ Yσɠƚԋσʂ ☆@lemmy.ml
      hexagon
      ·
      4 months ago

      Yeah that chart is really wild. I get the impression that the US has kicked the can down the road as far as they could at this point. The two levers the fed has are issuing more currency or raising rates. Issuing currency makes the inflation grow, and rates are driving a recession. So, they're stuck between a rock and a hard place now.

      • comrade-bear@lemmygrad.ml
        ·
        4 months ago

        I would say that it has something to do with the dedollarization that's growing around the east, but the drop precedes it, so yeah the problem goes deep

        • ☆ Yσɠƚԋσʂ ☆@lemmy.ml
          hexagon
          ·
          4 months ago

          I suspect that's a big part of it. With dollar based economy shrinking there's less demand for the dollar. That means when the US issues more currency there's less of a market to absorb it. Specifically, oil being sold outside the dollar is a very significant development. Pretty much every modern economy needs oil to operate, and before you had to get dollars in order to buy oil. Nowadays that's no longer the case.

          The US made an incredible strategic blunder by freezing Russian foreign assets because it shows the whole world that western financial system is not safe. If a country starts making decisions that go against western interests then the west will steal their assets, and that makes it impossible to have sovereignty. I suspect that's a huge factor driving dedollarization right now.

    • OrnluWolfjarl@lemmygrad.ml
      ·
      4 months ago

      There's a conspiracy theory that they are just pushing the collapse back as much as they can, so it blows up in Trump's face when he gets into office in January.

      • comrade-bear@lemmygrad.ml
        ·
        4 months ago

        It's not a conspiracy theory it's the only strategy because a crisis would kill any chance of electing someone of Biden's party, and if they loose the election the bomb blew up in the hands of the opposition, and if they do get elected they have 4 years to figure something out