Double “Un”s
Hat tip to Ed Steer for highlighting the article linked below.
NYCB Downgraded to Junk; Shocking Charts for Citigroup, Barclays and Deutsche Bank
There are two shocking concepts for depositors holding their funds in banks. “Uninsured” and “Unsecured”. The percentage of deposits uninsured alone is mind-boggling. If you throw into the mix the fact that depositors are unsecured creditors of institutions holding rapidly declining and illiquid assets, Congress and the Fed are in deep trouble. As are we.
I won’t speculate as to how this works out other than “not well”.
Below is a link to a famous Oliver and Hardy scene. I’ll let everyone figure out which character is Congress and which one is the Fed.