Yellen and a little stress!

She’s finally caught on:

Glad I’ve got my gold and silver :slight_smile:


The problem is when the loans will default.

It seems that will be dragged out for years. There is no crisis. So far…the banks are absorbing it as the cost of doing business.

I admit I could be wrong. I only scanned a write up on this many months ago.

Welcome to METAR, @Egentis! We encourage all investment approaches. We need a few gold bugs to balance the rah-rah “stocks always and forever” members. :wink:

The Treasury, Fed and FDIC keep a close watch on banks. But bank problems usually don’t affect the investment markets until there’s a genuine fear of a banking crisis that will spread. The Fed did a good job plugging the last problem in March 2023. You can see how the Fed temporarily bought a lot of Treasury debt.

If the crisis spins out of control to the point of seizing up the markets, the financial stress chart will react sharply.

Financial stress over 2.5 coupled with VIX over 30 is a sure sign of a serious financial crisis.

A stock market crash, such as the dot-com crash in 2001, can occur without a financial crisis.