KBWR - Consumer Debt Could Be A Bigger Issue For Banks Than Commercial Real Estate
2024-05-10 08:00:00 ET
Summary
- Many bank investors have been hyper-focused on commercial real estate loans as an issue for banks.
- There's a greater issue with credit cards and auto loans which many are overlooking.
- You have to engage in due diligence regarding the banks that house your hard-earned money to make sure you are not caught during a banking crisis.
We have been publishing articles on various issues in the U.S. banking system for more than two years. The latest results show that our estimates and predictions, as well as our focus on forward-looking indicators, have proven to be correct. We're already seeing signs of major stress, putting pressure on U.S. banks’ balance sheets. The recent data on CRE lending is simply horrendous, and given what the mainstream financial media is saying, very few were expecting a 20%-plus default ratio in this segment, despite all the issues in the CRE space. If you follow our banking work, you’ve probably noticed that we were expecting (and still expect) an even higher default ratio based on our analysis of forward-looking indicators....
Consumer Debt Could Be A Bigger Issue For Banks Than Commercial Real Estate