American Bank Carnage part 2
The David McWilliams Podcast
00:00
The Fed's Increase in Interest Rates
At the end of a credit cycle, what you will find is that all banks have overextended themselves. The Fed has increased interest rates from almost zero to 5%. Which means that all those assets had to be refinanced. So therefore you get much more cascading bad loans. If one of these domino goes, the whole lot goes. That's why it's happening now.
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