Phase 2 Of The Banking Crisis Just Started

Ken McElroy Show

Ken McElroy

Business, Investing, Education, Business News, News

4.8 • 692 Ratings

🗓️ 16 February 2024

⏱️ 33 minutes

🔗️ Recording | iTunes | RSS

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Summary

Join Ken and Danille as they talk about the intensifying concerns about the health of smaller banks. They will highlight the precarious situation of regional banks heavily invested in commercial real estate loans, which are becoming increasingly risky due to high-interest rates and a surge in delinquencies. They will also touch upon the potential impact of these challenges on the broader economy and the banking sector.

The links to download and view the charts mentioned in this podcast are below:

Bank failure chart: https://www.dropbox.com/scl/fi/5hzfydnmx003xtpn5k06o/Bank-Failure-Chart.jpg?rlkey=oy0qfci6sg77n0lagrj7gkycb&dl=0

Bank Term Funding Program Fed Expiration: https://www.dropbox.com/scl/fi/l3r26hf87ajq0qp5yxb9c/Bank-Term-Funding-Program-Fed-Expire.jpg?rlkey=dz6nh5qzy2a736y6bf03doqvg&dl=0

Bank Term Funding Program: https://www.dropbox.com/scl/fi/m1f4mhzwf33jlwx8ycgwu/Bank-Term-Funding-Program.jpg?rlkey=viryyayr6xy7htkfuwd6tpnrs&dl=0

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ABOUT KEN: Ken is the author of the bestselling books The ABC’s of Real Estate Investing, The Advanced Guide to Real Estate Investing, and The ABC’s of Property Management. With over two decades of experience in real estate investing, Ken McElroy is passionate about sharing the good life by helping real estate investors grow and prosper. This podcast is a place for Ken to discuss numerous topics connected to real estate investing, including finance, budgeting, the entrepreneur mindset, and creating passive income. Ken offers a wealth of personal experiences, practical advice, success stories, and even some informative setbacks, all presented here to educate and inspire. Whether you’re a new or seasoned investor, the information and resources on this channel will set you on a path where you and your investments can thrive.

Ken's company: https://mccompanies.com

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Transcript

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0:00.0	Welcome to the Real Estate Strategies podcast. Let's get right into this episode.
0:04.8	Hey guys, welcome to the Ken McElroy Show. I'm your host, DeNeal, here with Ken.
0:08.2	What's up, guys? So today we're going to be talking about the three issues that are facing the
0:12.5	banking system that could totally crush the regional banks. And we're going to address that today,
0:18.0	explain, you know, why that could happen and how that could affect you.
0:22.0	We're also going to tell you if we think this could spread to the larger banks as well.
0:26.0	Yeah.
0:26.9	We got a lot going on.
0:28.5	And first of all, is why do banks fail?
0:30.2	I think that's one of the things we need to discuss.
0:33.3	You know, there's three big, big issues.
0:38.9	And we're going to talk about each one of them.
0:44.0	The first one, of course, it's talked about a lot, are the commercial mortgage maturities.
0:46.5	And now, a lot of you might not be in the commercial market.
0:48.3	Some of you might be in the residential market.
0:52.2	But Bank of America is Bank of America, you know, as an example.
0:53.2	Chase is Chase.
0:55.5	They're in both. So you should be concerned because you're in both. So the commercial banks are facing massive, massive issues
1:03.0	because they've lent and they have assets on their books that during this year and next year are going to be revalued. As those loans
1:13.3	mature, then now they're facing situations where the values are actually less than the loans.
1:20.3	That's the big issue. So the equity's gone. That's the first one. And that's in most categories.
1:25.6	That's office buildings, which is obvious to pick on that's an
	...

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