Raoul Pal & Julian Bridgen: Understanding How to Navigate These Global Markets
Real Vision: Finance & Investing
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The Recessionary Risks Are Real
Banks make hedge funds look pedestrian when it comes to leverage. Banks are 15 to 25 times leverage. They are balls to the wall leveraged. So I think their profit starts to deteriorate or continue to deteriorate on their interest margin. We haven't even started to see the loss. The rate of change of credit card losses now is approaching the sort of highs of 0.8 just before we went to the recession there. You're about to see commercial and industrial loan losses start to accelerate, I think, materially.
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