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📈 Macroeconomics

$79 billion withdrawn from commercial banks in the last week (5/31-6/7). $955 billion in deposits has been pulled from the all time hit 4/13/22. Since the run picked up momentum 2/22/2023, $487 billion in deposits have been pulled.

Is the bank run picking back up speed again? Hello and happy Friday Superstonk, I hope everyone had a great week! Resident Jellyfish back again to review this weeks commercial bank deposit data--deposits appear to be picking up speed again! Oh yeah, deposit outflows are still being 'made up&

Goldman Sachs: Leveraged loan defaults hit $25 billion and are heading for the third-worst year in history. This marks a worse start to the year for leveraged loan defaults then 2008...

Before we get started, Leveraged loans are a high-risk type of floating-rate financing used by companies with substantial debt and often poor credit histories. Such loans have supported leveraged corporate buyouts (LBOs), and their securitization has led to the creation of collateralized loan obligations (CLOs) and exchange-traded funds (ETFs). The

Fed submits Monetary Policy Report to Congress with discussions of "the conduct of monetary policy and economic developments and prospects for the future."

They state, "leverage at hedge funds remains high" & "other core services price inflation remains elevated and has not shown signs of easing." https://www.federalreserve.gov/monetarypolicy/files/20230616_mprfullreport.pdf The Federal Reserve Act requires the Federal Reserve Board to submit written reports to

Federal Reserve issues FOMC statement: the Committee decided to maintain the target range for the federal funds rate at 5 to 5-1/4 percent.

Source: https://www.federalreserve.gov/newsevents/pressreleases/monetary20230614a.htm Recent indicators suggest that economic activity has continued to expand at a modest pace. Job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated. The U.S. banking system is sound and resilient.

Inflation Alert! ‘Greedflation’ is replacing 'inflation' as companies raise prices for bigger profits, 'companies appear determined to raise prices even more, despite a decline in shipping and gas costs.'

https://www.marketwatch.com/story/greedflation-is-replacing-inflation-as-companies-raise-prices-for-bigger-profits-report-finds-bfb51060 They’re calling it “greedflation.” That’s the practice by many S&P 500 food and consumer companies of raising prices to protect what a new report calls their “cushioned corporate profits,” and it has enabled them to boost margins through the current

Treasury Secretary Janet Yellen: “I do think that there will be issues with respect to commercial real estate.” “I think banks are broadly preparing for some restructuring and difficulties going ahead”

Source: https://www.marketwatch.com/story/treasury-secretary-yellen-warns-of-commercial-real-estate-issues-that-could-strain-banks-1bab9d83 Treasury Secretary Janet Yellen, in her first interview since the U.S. debt-ceiling was lifted last week by Congress, warned on Wednesday about the potential for banks to feel strain from their exposure to weakening commercial real estate valuations. Yellen was asked by

‘Shadow Banks’ Account for Half of the World’s Assets—and Pose Growing Risks: 'no one seems to have a firm handle on the risks that nonbank financial entities could pose if numerous trades and investments sour.'

Source: https://www.marketwatch.com/articles/shadow-banks-account-for-half-of-the-worlds-assetsand-pose-growing-risks-8f4b5961 The sudden failure this year of three sizable American banks demonstrated one way in which the financial system can “break” as the Federal Reserve and other central banks press a campaign to normalize interest rates. There could be others. Risk-minded regulators, policy makers,