Unrealized losses at U.S. banks have now reached levels seven times higher than those of the 2008 financial crisis, putting deposits and the entire financial system at risk. With high interest rates and shaky economic conditions, the value of bank assets continues to decline, making the situation more dire. In this video, we dive into the impact of these unrealized losses, the implications for depositors, and why securing wealth outside of the system may be crucial for financial protection.<\/p>\n
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CHAPTERS:<\/p>\n
00:00 \u2013 Intro: U.S. Bank Losses at Crisis Levels<\/p>\n
00:42 \u2013 Bank Assets and Risky Derivatives<\/p>\n
01:53 \u2013 What Are Unrealized Losses?<\/p>\n
02:30 \u2013 Impact of Rising Interest Rates<\/p>\n
03:44 \u2013 Why Liquidity Problems Matter<\/p>\n
04:49 \u2013 FDIC Concerns and Bail-ins<\/p>\n
06:18 \u2013 Who Truly Benefits?<\/p>\n
07:23 \u2013 The Need for Wealth Protection<\/p>\n
08:17 \u2013 Protecting Wealth Outside the System<\/p>\n
09:00 \u2013 Options for Financial Security<\/p>\n
<\/p>\n
TRANSCRIPTION:<\/p>\n
0:00<\/b><\/p>\n
US banks\u2019 unrealized losses are soaring to seven times that of 2008 crisis levels, putting all of our deposits and the entire financial system at risk. Hi, everyone, thank you for being here. Big news this week from US banks \u2013 we are going to get into what exactly is going on and how it impacts you. A combination of high interest rates and shaky economic conditions are eroding the value of bank assets, assets that are supposed to offset banks\u2019 exposure. Exposure that includes risky derivatives \u2013 the same financial tools that helped almost bring down the system in 2008 during the Great Financial Crisis. And before someone out there says, \u201cOh, it doesn\u2019t matter, this time is different,\u201d you\u2019re right that this time is different \u2013 but you\u2019re wrong because it does matter. The only thing that\u2019s different about this time is that it\u2019s worse.<\/p>\n
1:19<\/b><\/p>\n
Any promises made in 2008 that the system would somehow become safer were empty; none of those promises came to fruition. In fact, what we have today is a system where banks have more exposure and more leverage than they did in 2007, but less collateral, fewer assets, and less liquidity to back up all of that risk, leaving us more vulnerable than ever before \u2013 as evidenced by these unrealized losses. We\u2019re going to get into what exactly they are and why they\u2019re so serious, but as a quick reminder, first: an unrealized loss is a loss that hasn\u2019t happened yet on paper. For example, let\u2019s say you buy a house and move into it, and a year later, it\u2019s worth 20% less. If you don\u2019t sell the house, it\u2019s not really a loss, but if you were to sell it, then you\u2019d lose 20%. It is a loss. That is what all of these banks are doing \u2013 they\u2019re sitting on assets that have declined in value. If they had to sell them, they would face serious losses.<\/p>\n
2:30<\/b><\/p>\n
The majority of these assets \u2013 a big chunk \u2013 comes from residential mortgage-backed securities. But it doesn\u2019t stop there. It also includes corporate bonds and treasuries. Again, these rising interest rates have reduced the value of all these assets. And before someone says, \u201cWell, it\u2019s not a big deal; we know that more interest rate cuts are coming, the Fed\u2019s going to cut rates,\u201d that might be true. But this article goes on to say that even if rates were to drop significantly, experts say banks could see only up to 25% of their unrealized losses recover. Only 25%! And, as a reminder, these losses are seven times what they were in 2008. This is a serious situation, and it becomes even more serious when these banks need liquidity.<\/p>\n
3:10<\/b><\/p>\n
This is what happened last year with Silicon Valley Bank when it collapsed. They needed liquidity, they were forced to sell their assets at a loss, which made people realize that these balance sheets we\u2019re looking at are completely fabricated \u2013 they do not tell the real story. Our banks do not have the assets on paper that they\u2019re claiming to have; they don\u2019t have them in real life. This is so concerning because we know market volatility is here to stay. This article even says, \u201cMarket volatility is here to stay, and banks will have to adapt or go under.\u201d Now, what does it mean if a bank were to adapt? Adapting would mean limiting their exposure or their risk, reducing that leverage, and increasing their assets and holdings. But I\u2019m going to tell you why that\u2019s not going to happen \u2013 because it does not help their short-term profits.<\/p>\n
4:14<\/b><\/p>\n
It all comes down to who benefits. It\u2019s not about the average depositor, it\u2019s not about the taxpayer who will have to pay if banks go under and get bailed out again. It\u2019s about shareholder profit, it\u2019s about the elites who are going to be making money off all of this exposure, regardless of the risk. And before you say, \u201cWell, the Federal Deposit Insurance Fund, the FDIC, they\u2019ll make me whole,\u201d as a reminder, the FDIC holds less than 2% of all total insured deposits. I\u2019ve talked about this before, but again, it still shocks me how many people don\u2019t realize just how weak our system is. Now sure, the FDIC is saying, \u201cDon\u2019t worry, we\u2019re going to do more stress tests on these banks, we\u2019re going to make sure everything is taken care of, nothing to see here, nothing to worry about.\u201d But as a quick reminder, these are the same people who missed all of the bank failures, who didn\u2019t see the writing on the wall this year when multiple banks had to be bought out by other banks because of their toxic assets.<\/p>\n
5:20<\/b><\/p>\n
So, I don\u2019t know, are they just not looking closely enough? Do they not care? Do they have a different interest? I don\u2019t know. All I know is that I don\u2019t trust them to make sure that these banks are doing what they need to do, especially after that clip leaked a couple of years ago of the FDIC members sitting in a room in private, laughing at the American people for not knowing what bank bail-ins were.<\/p>\n
5:49<\/b><\/p>\n
I mean, it\u2019s important that people understand they can be bailed in, but you don\u2019t want a huge run on the institution\u2026 if they put this out\u2026 like, \u201cWhy are they telling me this? Should I be concerned about my bank? Like, my insurance company doesn\u2019t tell me what they\u2019re doing with my assets; they just assume they\u2019re going to pay my claim.\u201d That has more full faith and confidence in the banking system than maybe people in this room do.<\/p>\n
6:18<\/b><\/p>\n
A bail-in being, of course, the opposite of a bailout. Instead of the government bailing out the bank, it\u2019s the depositors who bail out the bank, making the bank whole again by taking their depositors\u2019 funds, a portion or the whole thing, to make sure that the bank is whole again. That\u2019s what they\u2019re up to in a room when no one\u2019s watching. That\u2019s what they\u2019re sitting there laughing about, saying, \u201cThe American people don\u2019t need to know. They would be concerned.\u201d Of course, we would be concerned. More people deserve to know the truth of who\u2019s really pulling the strings, who\u2019s really behind all of this.<\/p>\n
7:23<\/b><\/p>\n
The bottom line is that this never should have been allowed to happen. We should not live in a society or system where banks are allowed to have this much exposure, this much leverage, and this much risk without having anything to back it up. If the people in power really cared about us, there would be higher capital requirements, there would be caps on how much exposure they can take. But that\u2019s the simple truth of it: nothing changed after 2008, and there\u2019s a reason why. They could have enacted new laws, they could have enforced those. I mean, to be fair, they did create regulations, but they haven\u2019t been enforced. There were international guidelines set following 2008, and the United States still hasn\u2019t enacted them because big bank lobby money has been involved. Wall Street has been lobbying against these regulations, making sure that their profits are not hurt, regardless of what happens to the average American.<\/p>\n
8:17<\/b><\/p>\n
That\u2019s the bottom line, and that\u2019s the truth. And that\u2019s why I am so passionate about not being inside of their system. Because I know that as long as I\u2019m in that box, it\u2019s all being controlled by people who do not have my best interests at heart. That\u2019s why I choose to take matters into my own hands by protecting my wealth outside of the system in physical gold and silver \u2013 something that they can\u2019t touch, something that they can\u2019t control, something that they can\u2019t bail in. It\u2019s something that I own because I physically hold it; I own it. It is mine. It is true money since the dawn of time. That is why I choose physical gold and silver, and I strongly urge everyone who\u2019s watching out there to do the same.<\/p>\n
9:00<\/b><\/p>\n
And I know someone is going to say, \u201cOh no, I watched this whole video about the news, and now she\u2019s just talking about gold.\u201d Yeah, I am talking about gold because it pertains to the news. If I read a headline about US banks\u2019 unrealized losses and threats to depositors and the entire financial system, I want people to be educated on their options. That\u2019s what I\u2019m trying to do \u2013 make sure that everyone knows there are other options out there. Because they don\u2019t teach us this in school, and I\u2019m sure there\u2019s a reason for that \u2013 because they don\u2019t want people to have control of their wealth under their control versus theirs. That\u2019s the bottom line.<\/p>\n
9:33<\/b><\/p>\n
So, all of that being said, if this concerns you, if you\u2019re trying to figure out what to do next or how you can protect yourself, I do absolutely recommend that you talk to a member of our team. You can call us at the number below, you can click the Calendly link in the description \u2013 whatever is easiest for you. Talk to a member of our team, because they are experts in this. They have years of experience in understanding the system and how to set yourself up outside of it. And, as always, I so appreciate you being here. I\u2019m Taylor Kenny with ITM Trading, your trusted source for all things gold, silver, and lifelong wealth protection. Until next time.<\/p>\n","protected":false},"excerpt":{"rendered":"
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