While Credit Suisse's struggles appear unrelated to the mid-tier U.S. banks, the combination of the two issues could spark a broader reexamination of the banking system among investors, according to Peter Boockvar of Bleakley Financial Group.
"What this is telling us is there's the potential for just a large credit extension contraction that banks are going to embark on [to] focus more on firming up balance sheets and rather than focus on lending," Boockvar said on CNBC's ""It's a balance sheet rethink that the markets have. Also you have to wonder with a lot of these banks if they're going to have to start going out and raising equity," he added.filed to raise $9.
The fallout from the collapse of SVB could also lead to more regulation and rising costs for the U.S. banking sector, including the potential for higher fees to regulators to pay for deposit insurance.
elerianm FYI FED credibility has long gone … how many credibly passes do give them if you think it’s still at stake ?
elerianm Nobody has consistently questioned Fed credibility as much as elerianm has. LHSummers has been objective & has appreciated Fed speak & actions since Jackson Hole. Powell probably could & should have avoided his dovish comments on 1-Feb but even then Summers was forgiving
elerianm Fear is an opportunity to buy.
elerianm Yo where can the average American get some liquidity help - this world is very broken - we want the house of cards to tumble lol
elerianm Circus
elerianm Can someone make elerianm US Treasury Secretary?
elerianm You first need to have credibility before you can lose it.
elerianm Pause is prudent Even with inflation at 6%
elerianm Yes raise rates & let the markets retreat & not reside in the so Called Meta Verse / la la land.
elerianm Yes they need to keep going in the long run it's better for everyone.
elerianm i want them to keep hiking, i want to see the biggest financial crisis
elerianm Interest rates need to be continued to be raised. There is no escaping that remedy. Any waivering will simply fuel inflation more.
elerianm It's a tough choice. PPI, jobs data showed supply side issues continuing to ease which will reduce inflation pressures. Recent financial tightening will also impact it. It may be more prudent to pause - can always hike later. Undoing later would show chaos
elerianm Fo sho
elerianm The FED can't hike rates. The banks desperately need liquidity, ie they can't continue to sell low yields bonds for a loss. FED never acts proactively to prevent something to break, but only when consequences are unbearable for political reasons
elerianm So is this the result of stopping the correction that should have taken place after the last credit crunch in 2007? Or is it that the new norm is closer to zero interest rates and Central Bankers no longer have interest rates as a tool to control the economy.
elerianm The Fed is the arsonist and the fire brigade
elerianm No they shouldn't. They need to cut and hard. In fact, they shouldn't have raised 1 bps after that July meeting last yr. I've been saying that for many M. Here is a more comprehensive overview of what they did:
elerianm Nick just announced a pause. Every bond guy taking big losses
elerianm Yes
elerianm There were never enough arrows in the quaver, once the Fed brought the rates to near zero. The only way to correct all the problems created by the Fed playing Whac-A-Mole, is a good old fashion depression
elerianm Yes, they have to.
Time to pay the Piper! Soon.
When CS decided against honouring the Adani Bonds, It was actually saving Adani 😁😁
elerianm Big questions to me: Can they even hold at this point? Even if they cut rates, would it be enough?
elerianm What credibility?
elerianm He's spot on 👍
elerianm More rate hikes is suicide. Time to get another expert on your panel.
elerianm How raising rates in USA will lead to lower oil and fertilizers prices worldwide? Food and energy are the root cause of inflation! You can have a 20% rate but it will not solve the problem!
elerianm
elerianm Rock meet hard place
elerianm Yes, keep them creeping up at least 25 BPS. Some lousy banks and companies won’t cope but that helps slow down the inflation generator
elerianm Completely wrong. El-Erian himself doesn't want to change his mind because it will undermine his own credibility. It is obvious the Fed should not increase rates right now. Any rate increase would just further destabilize the economy.
elerianm 50 pbs, of course. Let’s shake it all.
elerianm “Our deposits of safe!” elerianm . Let’s hope you are right. I know that’s what the Fed wants us to believe.
elerianm The FED never had any credibility.
elerianm Fed credibility is preserved by accelerating a banking crisis? I see said the blind man.
elerianm “Should the Fed continue raising rates? ” Is inflation 2%? Let me tell, if that goal is not met, what you are seeing today will look like a mouse fart compared to the future.
elerianm So sick of the term 'FED Credibility' as if they have a shred.
elerianm Inflation was largely a result of fuel prices spiking. Fuel prices effect every aspect from food, travel, housing, construction and what we pay to heat our homes. All of this while oil companies have record profits. I am not convinced raising rates was the right move.
elerianm Seems like quite the mess. 😐
elerianm This is about pace, or speed in which things have to change. I suspect they pause after raising rates 0.25%, inflation is a massive problem can last years if not contained. Things adapting, needs a bit more time thats all. After a decade of negative rates, its payback time.
elerianm Right!
elerianm A big no The Fed has done enough damages flying blind
elerianm Mortgage rates near 10% should make for a spectacular housing Market collapse.
elerianm Tom cotton as expert? Seriously ? Cramer who promoted svb You folks are going the path of cnn
elerianm who is this credibility they talkin about