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“Erik describes the “giant miscalculation”!”

The latest from Erik –

Bill’s Commentary:

“No worries though, it’s only a flesh wound!”

JUST IN: $517,000,000,000 in unrealized losses hits US Banking System as FDIC Warns 63 Lenders on Brink of Insolvency…

The Federal Deposit Insurance Corporation (FDIC) has revealed a troubling trend: unrealized losses in the US banking system are climbing once again.

In its latest Quarterly Banking Profile report, the FDIC notes that banks now face over half a trillion dollars in paper losses on their balance sheets, primarily due to their exposure to the residential real estate market. These unrealized losses, the gap between the purchase price of securities and their current market value, are becoming a significant burden.

While banks can hold onto these securities until they mature without marking them to market on their balance sheets, these unrealized losses can turn into a major liability when banks need cash.