Hello fellow rebel capitalists hope you're well so I wanted to go over some bank data and then go over the top three things that I think are the top three reasons why I think more banks will fail sooner than later.

So let's go right over to the Wall Street Journal.

They just had a fantastic article

going over a bunch of charts. And what're going to do is we're going to

look at these charts and then we're going to determine okay what does that do

for the probability of more banks failing.

We always talk about on this channel that I think the banking crisis that we entered

in March of 2023 just in the middle innings.

We have not seen the end game with this yet and I think this article

points out some of the top reasons why the probabilities are high that we see this get worse before it gets better.

So let's go right over to this Wall Street Journal article.

Title is what to watch when bank earnings season kicks off in charts.

Now the first thing that really just

talking about the same, they say gains or losses,

but obviously we're just talking about the losses right here.

This is the picture we used for the thumbnail. Now look at this guys, even the this is just staggering. So what this is, let me explain.

You got the bank's balance sheets, the asset side are broken down into several different categories. One category is hold to maturity.

So this is where they put their let's say 10 year treasury yields that they buy their yielding 3%. This would have been back

called 2021, 2022. And at the time it made sense because you're just paying your

depositors or your funding costs, well let's say 50 basis points.

So if your funding costs are 50 basis points, but what you're buying, in other words what you're

borrowing the money to buy, is giving you 3% well you're buying the money to buy is giving you 3%

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