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Asian shares fall on banking turmoil, recession worries

9 Comments
By ELAINE KURTENBACH

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This is already a banking crisis that will become epic. Financial Times has been saying that there is a looming credit crunch, and Bloomberg has been saying that it's pre-Volker inflation versus the Great Recession.

-2 ( +0 / -2 )

But this crisis will be a western crisis and not affect Asia.

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What kind of "customers" keep more than $250,00 in a deposit account. If you ask me, those are the kind of "customers" the banks would want to get rid of.

1 ( +1 / -0 )

Lee,bank needs every dollar they can get,banks are not regulated to protect the public,their are little options a depositer have

-1 ( +0 / -1 )

US Bank are not required to have bank reserves,so you out of luck ,if you need large amount of cash Google Google US Bank Vault Reserve Requirement

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Real problem's the ongoing run-off of customer deposits, that's the banking system's bread and butter! Easy to understand why, yields on money market funds generally about 10x higher than the bank deposits.

Surely wealthier and corp. accounts running off faster.

There is no liquidity problem because of the FED's emergency banking credit line BUT that's expensive vs. customer deposits. So, no 'contagion'/systemic risk but hard for banks to provide robust credit when the deposits are leaving and their profit margins shrinking!

Other key issue is rapid rise in rates, long duration assets are taking big unrealized hits, being 'marked to market', that also damages banks and their balance sheet and their ability to provide credit.

Finally, worth noting, area that has the most dependence on credit is real estate, so that long duration asset is much harder to purchase now as financing is more expensive, harder to come by etc.

Please no hate, just my 'take', I call balls and strikes!

-1 ( +0 / -1 )

It's worth noting, banking problems ALL lead to the same road = INFLATION, food inflation being at the true 'core', especially as global crop yields are terrible NOW due to shortages of especially fertilizers due to war in Ukraine.

Seems this problem building as fertilizer stockpiles are exhausted per some top soft commodity analysts - NOT ME!

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Impossible to have a strong global economy with uncontrolled inflation, not rocket science, people need to eat, global food production shrinking due to loss of food production in Ukraine/Russia, but especially loss of fertilizers and therefore falling crop yields.

Worth noting, Russian food producers doing great, they have plenty of fertilizer, enjoy strong dollar, like fact that global food markets under supplied etc.

Food's inelastic commodity, as people have to eat, but sadly MILLIONS more starving to death now due to this proxy war intent on trying to remove Putin from power...

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