“The last time financial stress and collateral stress combined in this way was in 2007-2008.
And here’s the part nobody likes:
We cannot tell you which bank is lurking.
The Federal Reserve will not tell you.
By the time they do, it’s because the floor has already collapsed…”
@ 1CoastalJournal
So the Coastal Journal analyzed what the data suggests and came to this conclusion:
🔴 Red: Stocks lurking.
Western Alliance
Banc of California
🟠 Amber: Structurally fragile; large reductions and very plausible capital losses.
Bank of America
Citigroup
Goldman Sachs
Morgan Stanley
Barclays
🟡 Yellow: Critical for the system / better protected, but still in the same situation. No one is "green".
JPM is 🟡 because regulators will do almost anything to keep it afloat.
WFC is 🟡: it is less likely to be allowed to fail, it is more likely to act as a buffer. That means slower explosions, but does not mean low risk.
If you don’t connect the dots you are not understanding ‼️
