Comments by "DrScopeify" (@drscopeify) on "Bank's concentration of consumer lending has collapsed, says Meredith Whitney" video.

  1. 100% bank regulations in place today are designed for a low rate environment and so they all need to change to work in a high rate environment . The economy shifted and bank laws and regulations need to follow to work in this new reality.
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  2. Well lookin at the FED chart for "Delinquency Rate on Credit Card Loans, All Commercial Banks" it shows that Q1 2023 was at 2.49% and in Q4 2019 before COVID was at 2.61% so we are just about back to normal. Ill check again what Q2, Q3 Q4 of this year goes shows comapred to 2019, if the rate shoots way way up then I know its going to get ugly but so far for Q1 2023 is just about back to normal.
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  3. No that is not what she is saying. We went from a low rate economy to a high rate economy and banks need to adjust to survive and that is a problem as all of the laws and regulations in place for banks only work ion a low rate environment so bank laws need to change to reflect the economy now being in a high rate environment.
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  4. ​ @tabbycat8511  Banking laws and regulations were designed around a low interest rate reality, if you actually know the regulations you will see clearly how they were formed. Customer's did not make much return on their deposits and savings accounts or CDs so the banks pushed hard for other ways to counter-balance their liabilities to assets ratio requirements by pivoting to investment banking, M&As, direct investments all kinds of products and services and transactions, but if rates will remain high for the long term, then the banks will need to re-balance their entire platform going forward. Some banks were caught in a bind as the treasuries they held form excess cash flow during COVID were all put in to the long end bonds, and those collapsed in value as the FED hiked rates and the 10 year notes moved fast and we entered an Inverted Yield Curve, the banks as such, were stuck with paper they would take a loss on if cashed out and those that had to cash out risked going insolvent due to this problem. The Banks overall have since 2022, taken their coupon payments and so are now doing better, the banks however are still holding paper that they can't really sell so either they wait until the 10 year is up and finally roll the paper over to higher return or the yield curve un-inverts, rates fall and the banks are able to cash out early without taking a loss but that would mean rates have to fall dramatically and I really don't see that happening
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