Name:   MartiniMan - Subject:   Is our banking system in peril? Date:   5/4/2023 11:46:37 AM

So far we have had worse banking failures in 2023 than in 2008-2009.  And today regional bank stocks are crashing as the markets realize that the difference between their stated value on their balance sheets, which is based on holding to maturity, is a farce if they end up needing more capital.  Read an article today that Charles Schwab holds the most of these kinds of securities and is at great risk of insolvency. 

This is the moral hazard created when they bailed out the banks in 2008-2009.  They continue to make bad decisions because they believe that the government can't let them fail.  I can assure you that if we have another banking crisis that spurs a run on banks, even if only by large depositors (as we saw with SVB) you can kiss your 404(k) and IRA values goodbye along with any cash in any bank in excess of $250K.....and even that may be at risk as the FDIC does not have the funds available to cover all those losses.