#410: The Fed Is Trying To Bring Down The European Banks with Tom Luongo
TFTC: A Bitcoin Podcast
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The Regional Banks Are in Trouble
The regional banks were over leverage because they couldn't make any money in traditional banking. They needed the good assets on the smaller banks balance sheets to stabilize their own balance sheets and then started papering the process over with zero bound rates, interest on excess reserves. The big banks are fine. And so do the big banks really want some of the most of the loans that are on these smaller banks balance sheet? Not really. That's what happened. It just sets up the right cycle for them to start clearing their decks so they can start offering positive interest rates on savings accounts. You're starting to see it in Money market rates, you're starting to hear about a high dollar denominated savings
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