Comments by "BrickTop" (@bricktop7803) on "This is Like a Horror Movie" video.
-
Already 5 US banks have collapsed with 4 more in the next 2 weeks. The dominoes are beginning to fall.
Mortgage Backed Securities (MBS) Your mortgage is sold as soon as the bank gets it signed off. These MBS are bought by Shadow banks.
This frees up funds for the Bank to issue another mortgage to another family, this is liquidity. Currently, the banks in trouble are having to sell their MBS at a loss and as a consequence lose money or liquidity. This is how these medium US banks are folding, that and the bank runs as depositors pull their cash out.... They are losing liquidity. If the cant move money through their bank - it shuts down.
This is the credit crunch Dan is talking about, First Republic closing cost the FDIC $13 billion, they only have $95 billion left to cover the guaranteed loans. A few more banks folding will deplete their reserves, after that its NADA, ZIP, sorry - no money left. Oh you were under the impression your bank deposits were guaranteed, sorry we are broke, and have no more money, you are on your own.
3
-
1