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How Many Banks Are Actually Insolvent (*Hint More*) | John Maxfield
If many banks have marked down their bond portfolios, a significant number of them may be insolvent. The fear is that these "zombie banks" will fail and people will lose their deposits, especially since only a small portion of these deposits are actually insured by the FDIC. This fear has triggered runs on the banks, leading to further instability in the financial system.
Watch this short video from How Worried Are Actual Bankers About The Banking System? | John Maxfield.
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There’s no doubt that it's a very challenging time right now for the average investor. Above and beyond the recent economic impacts of COVID, the new era of record low interest rates, runaway US debt and US deficits, and trillions of dollars in monetary and fiscal stimulus stimulus has changed the rules of investing by dangerously distorting the Dow index, the S&P 500, and nearly all other asset prices. Can prices keep rising, or is there a painful reckoning ahead?
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IMPORTANT NOTE: The information and opinions offered in this video by Wealthion or its interview guests are for educational purposes ONLY and should NOT be construed as personal financial advice. We strongly recommend that any potential decisions and actions you may take in your investment portfolio be conducted under the guidance and supervision of a quality professional financial advisor in good standing with the securities industry. When it comes to investing, past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All investments involve risk and may result in partial or total loss.
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