Let’s discuss the Federal Reserve comments on the 2024 Banking Crisis – Thanks for watching! Click the link below to get DELTA Pro Ultra and related bundles. Now enjoy 6 months of interest-free payments & 5-year installment plan offer. The Smart Home Panel 2 Installation Consulting Service ensures a hassle-free setup by tracking orders, managing fittings, and answering technical queries for TX/CA homeowners. EcoFlow Website: https://bit.ly/3HREAAB
Join EcoFlow Community for more information: https://bit.ly/3tdGpEh
PROMOTIONAL OFFER: Get FREE FRACTIONAL SHARES when you sign up and make a deposit using my paid affiliate link for WeBull: https://a.webull.com/i/GrahamStephan
GET MY WEEKLY EMAIL MARKET RECAP NEWSLETTER: http://grahamstephan.com/newsletter
The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://the-real-estate-agent-academy.teachable.com/p/the-youtube-creator-academy/?product_id=1010756&coupon_code=100OFF – $100 OFF WITH CODE 100OFF
THE 2024 BANKING CRISIS:
Commercial Real Estate values are plummeting, with Morgan Stanley estimating that the “entire market could decline 40% – which is the same magnitude that we saw throughout the 2008 Financial Crisis.”
As CNN explains, “US banks hold about $2.7 TRILLION dollars in Commercial Real Estate Loans…and about 80% of that is held by smaller, regional banks…the ones that the US government hasn’t classified as “too big to fail.” On top of that, “More than $2.2 Trillion will come due between now and the end of 2027, so regional banks could have problems collecting on those loans.”
All of this was driven by New York Community Bancorp which “reported a surprise loan loss of $552 million dollars, driven partly by expected losses on commercial real estate loans.” In this case, “the bank identified a pair of loans in particular — one related to an office complex and another for a co-op residential building — that were responsible for as much as $185 million in losses.”
Germany’s biggest lender, Deutsche Bank, also said that it allocated $133 million during “the last quarter to absorb potential defaults on its US commercial real estate loans. That’s more than quadruple the amount it set aside during the same three-month period in 2022.”
In response to this, Jerome Powell said that “There’s some smaller regional banks that have concentrated exposures in these areas that are challenged and we’re working with them. It feels like a problem we’ll be working on for years. It’s a sizable problem.”
According to the National Bureau of Economic Research, about 14% of “all commercial real estate loans and 44% of loans on office buildings appear to be in a negative equity position, meaning the debt is greater than the property value.” As they say, “That increases the risk that borrowers won’t repay and will default on their loans” – which eventually falls back on banks that may or may not have the ability to survive the loss.
Thankfully – Jerome Powell said that “there will be losses for the owners and for the lenders, but it should be manageable.”
He also went on to say “The economy’s strong. The labor market’s strong. Inflation’s coming down. We don’t have a perfect crystal ball about the future, and things could happen. But I do think the economy is in a good place, and there’s every reason to think it can get better.”
In terms of New York Community bank, “analysts at Bank of America cited “feedback from management” that New York Community Bancorp was not experiencing any unusual deposit activity.” However, their share price has continued declining – so, investors aren’t exactly optimistic about the short-term future, despite what analysts say.
Of course, full disclosure: anything can happen, I have no idea what I’m talking about, don’t listen to a random guy on YouTube, always consult a professional for your own specific situation, and all of this is purely my opinion.
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
For business inquiries, you can reach me at grahamstephanbusiness@gmail.com
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This is not investment advice.
-Thanks to EcoFlow for sponsoring this video: https://bit.ly/3HREAAB
-Jerome Powell: “Smaller banks will ‘have to be closed’ or merged ‘out of existence’ because of falling property values.”
-Here is a link containing the source material for each piece of research cited. I do my best to make my videos as accurate as I can, and the additional resources should help anyone who wants to look into them further – enjoy! https://docs.google.com/spreadsheets/d/1T9raejfmvVQNdqCFYBbuI3xE8KuXsnLPfqJr5T261O0/edit?usp=sharing
😊
😊😊😊😊😊😊
This is intentional.
I’ve been looking at the commercial real estate crisis slowly unfolding since people didn’t go back to the office after covid. One of my friends works the debt collection part of banking and has been largely concerned about this issue lately. It was only a matter of time.
The fractional reserve requirement is actually Zero. Has been since 2020. Banks don’t have to hold a penny.
Banks do not operate under fractional reserve banking anymore Graham
You own a tesla?
The wealth and control of the Markets is with Wall Street, Nasdaq and the City of London and that bond will never be broken.
The Markets are rigged and controlled by the USA and the UK.
Just as we witnessed the ^crash of 2008″ which was saved by the actions of the FED and the BOE…..Which was printing money and paper IOUs on a vast scale from 2008 until 2023 and dishing it out to the banks for FREE at almost ZERO % Interest rates.
If that does not convince you that the Markest are rigged then nothing will.
Everything will be done to prevent the Markets crashing because that would lead to another Great Depression, a thousand times worse than the last one.
It is a huge mountain of cards supported by DEBT and paper IOUs.
One see that the amount of Debt and IOUs floating about on the planet today is far greater than the value of all the Stocks and Shares on the planet, and the mountain grows by the day.
Should that debt and IOUs exceed the ability to service it then we will see another crash.
The signs are already there….China for example.
Russian wealth has been grabbed with sanctions.
The next grab will be in the Middle East where the abundance of wealth held by the few is ripe for the picking….Just needs another war which is almost about to happen with the ongoing war in Palestine…
I always wondered why my father banked at four different banks, for the businesses that we owned it was because he would never put more than the FIC insurance would cover
Wow so much spam scams here in comments…
The government and them are destroying the fiat monetary system to usher in there fed now complete domination over us all ,, now’s a good time to buy precious metals .
You can be damn sure the rich won’t lose their deposits. It will be the poor and I really worry about what will happen with the stock market. I expect a big run, but it’s gonna all crash because everyone’s broke in the world. They’re doing this for their one world government long game, anyone who loves peace and freedom better wake up now and I don’t believe these grams Sthephen YouTuber why doesn’t he mention that it’s the government through any of this it’s not just the banks problem goes above the bank, and when they pay to print more money again that’ll be the last nail and the coffin
I will say the stuff he mentions on this video is true it’s just signs of what’s the come
Anyone here think of 8-Bit guy when you heard EcoFlow?
This along with AI will dramatically increase remote work
@1:22 WRONG!. Since March 2020, banks are not required to keep 10% of deposits. The current requirement is 0 (ZERO) percent.
How this dude so much is he a economics major or something?
lol is that a car inside your house? okay…..
Thanks for the info Graham!
I like the way YouTubers say this is what’s happening but don’t listen to me.
👏⭐👍👈
Dropping by to say: while I generally enjoy your content, the silliness of the thumbnails you are generating actually prohibit me from clicking them. This one is especially ridiculous. Hopefully, this criticism is received constructively.
Right now, things seem odd. The US dollar is losing value due to inflation, but it is strengthening in comparison to other currencies and commodities like gold and real estate. Because they believe it to be safer, people are going to the dollar. I’m concerned that the rising inflation may lead my retirement funds to lose value. Where else could we put our cash?
Personally, I would say have a mentor. Not sure where you will get an experienced one, but if your knowledge of the market is limited, it seems like a good bet.
I agree. Based on personal experience working with an investment advisor, I currently have $1m in a well-diversified portfolio that has experienced exponential growth. It’s not only about having money to invest in stocks, but you also need to be knowledgeable, persistent, and have strong hands to back it up.
Please who’s this advisor that guides you?
She’s known as a ‘MARGARET KATE MARTINEZ’. So easy and compassionate Lady. You should take a look at her work.
Oops all bots
God, guns and gold. We’re coming over.
Fearmonger title……let’s see if he has an affiliate link…
Yup.
i guess after doing this last year, and not getting the banking system “collapse” you had hoped fior, it’s time to dip back in to get your mentally-ill audience to fill your bank account.
OMG get to the point already.
It was always going to be office space and future retail space will become an issue as more and more people continue to use Amazon, etc.
Clickbait 👑
hey Graham!
Long time subscriber here w a new video idea!
why not study Bitcoin and learn why it’s better than real estate?!
literally do pros and cons of both and post your findings! 🙂
2:02 @GrahamStephan – So basically a Ponzi scheme. But Legal… ISH
There are idiots who will say Biden is doing a great job. The wars, the kickbacks, the arms sales, the economic crash, these are all planned sabotage
NYCB has crossed into the 1b territory, mega profit. They are being punished for doing the smart thing, by putting a lot of money aside for possible (!) write-offs. The fact that they can easily do this only shows that their position is very solid. I would rather be worried about all other banks NOT putting money aside for possible write-offs (imho it’s illegal not to do so, or at least should be illegal not to do so).
Well please let Direct Express Comercia bank fail at least nobody else or me thats disabled will ever get our card blocked off so they can collect interest but return money to ss admin. Ty
And that will be less people like me they rip off too, and then get away with it scott free no prosecution.Maybe American inflation is greedy bank people being greedy wanting more while ripping you off.Thats there motto at least.
Where’s the big corporate money investing in converting office parks into apartments and or needed residential housing?
His hands. They don’t stop moving
Graham Stephan has turned to the good content channel to the financial doom and gloom channel. Sad to see.
As an Investing enthusiast, I often wonder how top level investors are able to become millionaires off investing.. I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?.
(Do This ASAP) Do what?!
Oprah had her $400 million plus saved at SVB courtesy of Gov Newsom and Yellen. A tad bit more than $250,000 covered by the federal bank program. Any comments or does everyone realize we are the suckers?
Unless these commercial companies are failing then the bank is still collecting its money unless its a loan on a vacant building. So i call complete BS on all of this. Just another way for banks to take profits and move on to the next person willing to give them a handout.
Title says: “Do This ASAP”. However, it’s not clear to me what the word “this” is referring to. Is something you said in this video? Could you clarify?
Why? Why do you always look like you are taking a sh**t and thinking about FTX? One happy thumbnail once a year does not hurt!….
Power load shifting isn’t cheap … i went offgrid solar and wind powering everything in 1997. I probably know more about that subject than Graham knows about money.
Your deposits are safe, the FDIC will take over the bank and sell it to a larger bank, if they can’t find a buyer they will pay you back up to $250k out of their fund.
This right here. The Silicon Valley bank was full of a bunch hedge fund managers money taking stupid risks with the collective funds.
So this video said a whole lot of nothing. It may hapoen, it may not, and didnt even follow through on the title “do this now!”
Scrolling through your video’s thumbnails makes me extremely depressed. Like, bro, you’re rarely ever smiling.
Never invest nor put your money on Zombie Banks! Get your money out of NYCB NOW!!
When we approach the Zenith of a possible banking crisis, El Primero rule is to bide your time and not panic. Things can change in a tenth of a second.
Sadly, banks continue to stumble, mortgage rates is on the rise with higher imports and lower exports, yet the FED is to lessen cost. So, where do we grow and safeguard our money now? something will eventually break if they keep raising interests and quantitative tightening.
ideally, you should consider financial planning to get the best results with your money, notwithstanding economy situation
Well agreed, I’m quite lucky exposed to finance at early age, started job at 19, purchased first home at 28, got married shortly afterwards to raise kids early. Going forward, got laid-off at 40 amid covid ’19 outbreak, immediately consulted with an advisor in order to stay afloat and after subsequent investments, I’m barely 25% short of $1m ballpark goal as of today.
this sounds considerable! think you know any advisors i can get on the phone with? i’m in dire need of proper portfolio allocation
Certainly, there are a handful of experts in the field. I’ve experimented with a few over the past years, but I’ve stuck with Carol Vivian Constable for about five years now, and her performance has been consistently impressive.
Good info!
Should talk more about how your coffee business is going, not sure if you’re even still running it
Went right out of my way and hit the like button. You deserve it Graham.
<>I’m an advocate for having a diverse investment strategy. I grew to a 7 figure mark with my portfolio having exposure to different areas of the market, including small and large-caps of the ETF index, blue chip stocks, coins, grade bonds and alternatives like cryptocurrency markets, as this helps manage the overall risk on my portfolio managed by my FA.. Credits to my adviser, Larry Marshall, i have no doubt investing more
Wow, that’s really nice! But how did you manage to achieve all that even with the current economy that’s very bad? please I’ll appreciate your assistance on how to go about it, I’m desperately looking for a way to pay up my debts and also achieve my goals.
you’re the only reason why I have gotten this far in building my finance and also my portfolio to this extent
Bitcoin is the best coin to invest in fast rising and if you are lucky to have a good broker then I believe you have absolutely nothing to worry about because you are in for a final uplift
Most people don’t really invest due to ignorance and discouragement from family or friends without trying to experience it themselves too
I remember friends calling me crazy when I started but now I shut up them with my four figure weekly return.
This is the primary driver behind the “back to the office” nonsense. Commercial property investors are paying for that coverage.
You know I’ve been getting people to watch your videos for years. It would be absolutely awesome if next video you start you randomly add in and a shout out to Nick Brown. 😁
Modern Money Mechanics
Read it
The free stock I got was 500 shares of Enron stock. Oh, and 1,000 shares of stock in a company that defrauded all of its customers and investors. Thanks Graham!
Graham, been watching you for years, and somehow you take a firehose of information, analyze it, condense it, and give it to us straight with facts in few minutes. Thanks for all of your hard work and support to back your arguments!
So many bots in the comments 😢 don’t fall for these scams yall. Be smart and do your research
3/12!!!!
Probably no reason to own bitcoin
Love the summary in video description
Hey Graham, if a financial institution like a bank or credit union closes, what happens to the member accounts that resided in the institution?
Graham you need to distinguish between product types of commercial real estate, Office is crashing, retail is going great… multi family (apartments) doing great….. oh my
Comment was a little premature, I probably should have watched the whole video first 😂
This is a super insightful! Thank you Graham!
Office space has been tough due to people working at home too… Many of those buildings are turning into apartment buildings…
It will surely be harder to get a loan in near future…
Nothing but paid subscribers and views! This guy career was finished with the FTX scandal
My conclusion: The US will have to avoid a systemic crash in its banking system and to throw a lot of money into the black hole that gapes there. That keeps national debts and inflation higher for longer.
The Chase bank near me was closed yesterday “temporarily” going to check again today. Might’ve been because of the rain but they had two guards out front turning people away.
So basically the plot is people default on those properties banks cant handle debt so they also default maybe global economic crash then blackrock buys most of the properties then creates a rental system’s this will happen globally then we’ll never own those houses
So with the original loaned money (borrowed from the FED) already borrowed by the rank at the original borrowing rate with a sufficient profit spread, is it only federal banking regulations that force rate resets on these loans at the new rate rather than the banks extending terms at original interest rates to, you know…not create their own failure?
Another words, things are not nearly as bad as I was babbling for the past 12 minutes and this whole video is a waste of time… “Do this ASAP” Duh… Put your money in big banks… Groundbreaking!
I just started putting $5 a day into a few diff stocks? Could I talk to someone see if I’m doing this right?
oh no boomers are going to lose a little cash on their overvalued ugly office buildings that suck the life out of society oh no what will we dooooo
How can someone be so hateful towards commercial office buildings? Only in the west do I see such hateful comments. In Asia, Latin America and Eastern Europe people don’t hate old people and random shite like this so much
falling property values, yet the county tax accessor keeps raising my taxes cause they claim prices are climbing, plus a 5% kicker for inflation
commercial loans have 0 risk for the company who took the $ they just throw the keys at the front of the bank and laugh as they drive away.
Graham, can you please talk about longevity and age reversal that scientists are working on? I think people should invest in this industry. a world without death is nicer and prettier for sure. Please do us a favor and talk about it. thank you
@Graham Stephen you forgot to mention the reserv requirement since March 2020 has been 0%
So its gonna make sense to finance a commercial property and just live in it
I can’t wait!!!
Commercial property owners and managers have increased the cost to lease and rent commercial spaces insanely high. Its not a crash they just need to be more resonable in their prices. Just like the housing market its just over valued.
What does this mean for homeowners
Some shitty small banks are gonna be underwater because commercial real estate is down … How does that impact the average person? S&P and Nasdaq are at record highs and we’re clearly in a massive bull market. Doesn’t seem like there’s any reason to be sounding emergency alarms….
So nobody thought that when real estate jumped up and people started buying towards their max nobody was going to default in this economy. And since a lot of companies don’t have use for commercial real estate that’s going to effect anything else.
im still learning to understand financial literacy sounds like wolf on wall street when banks hit a rock in 2016
I got 1500 in my Bank of america account just tell me its okay there
As a lower GS grade, traditional all day. I’m able to put more money in. More money in the TSP means more shares that I can buy and flip.
It’s a giant ponzi scheme.
How many ams48k bots were turned loose on this video? JFC.
Incorrect, new laws say no reserves in banks are no longer required
Let them FAIL! No BAILOUTS…. i want to buy a house for 25k ;D
Oh, don’t worry, I think the stock rally might have made a bigger mistake 😂
European farmers are striking on an unprecedented scale and the media is doing their best not to cover it. Prepare yourselves, folks.
Pretty slow on the uptake if you are just now reporting on this.
started my channel watching your videos 🙏🏻🙏🏻🙏🏻 love your content graham ❤️
Click Bait 🤣
Buying DPST and FAS puts
Does anyone believe anything Powell says? Bc I sure don’t! This economy is going down the toilet!
🏦 NO 🏦 IT’S 🌍 NOT 🌎 DOOOD 🏦 NOT 🏦 GOIN 🌍 TO 🌎 HAPPEN 🏦 EVERY 🏦 THINGS 🌍 GOIN 🌎 TO 🏦 BE 🏦 JUST 🌍 FINE 🌎 STOP 🏦 MAKING 🏦 DEEZ 🌍 END 🌎 OF 🏦 THE 🏦 WORLD 🌍 VIDS 🌍🌎🏦… 😒🤣
Thank you for this discussion, I love your videos.
This dude is wrong so frequently that is better to just do the opposite that he says 😂😂😂😂😂😂
Nice to see Bidenomics working as intended…
Honest question. Are you like 4’9?