Society's Child

Biden economy: Banks are preparing for billions in losses in 2023

Joe Hoft
Gateway Pundit
Sat, 14 Jan 2023 06:00 UTC

Despite good earnings due to an increase in interest rates, banks are predicting a major increase in defaults in 2023.

JP Morgan and other banks have set up some major provisions to expected credit losses.

This means that expectations for credit defaults are increasing drastically.

This all started last year.

Businesses know that according to US GAAP they have to report liabilities as incurred. These large expected credit losses are predictor of the 2023 economy and another reason the Biden economy may be the worst ever.

Comment: ...and this is probably the good news.

Reader Comments

TBoris · 2023-01-15T23:27:05Z

There is no real skin(consideration) in the game/contract for credit extension by banks. The money and debt are created at the same time(standard double book entries). See Money Masters: [Link] After 180 days, the loss of the asset (a credit card holder no longer able to make minimum payments) is taken off the books(a liability once an account holder goes in the rears). The banks just need to get past six months / two quarters and they are fine(they are able to take the liability off their books). Now of course the capitalization requirements(via banking industry policy) could find smaller banks holding the bag(they didn't have enough "loss provision") and get sold off(to larger banks) if they didn't prepare ahead of time. Just some ponderings.

Baybars · 2023-01-16T00:58:57Z

TBoris Heck of a game you are describing. It could only be played if there was nothing to lose.

Oh what a tangled web 'they' weave, when 'they' practice to deceive .

I hope Sir Walter Scott doesn't mind my taking licence with his words.

TBoris · 2023-01-16T04:28:13Z

Baybars Oh! what I am describing is a Charge-Off and what happens...See: "What’s a Charge-Off?" [Link]
So it happens all the time. The banks having big "loses"(see article) is actually a joke on us(IMHO). Let's say you owe 10000 to buy a car... The bank generated the loan (for $10000), and the cash to buy the car, plus the interest all at the same time(there are no real investors that have anything to lose in our nazi jack boot snake mountain: [Link] banker crowd!.... So what if they "lose" your account (because of non-payment) the 10000 seen earlier as an asset is now a liability(okay that sounds fair so far). That leads the accounting and stock evaluations to add 10000 in debt(Okay still fine). It is what happens after 180 days , that is missing, from the article above... After 180 days, the banks get to disappear (take it off their books) the liabilities as if they never happened! Just imagine if normal customers didn't pay a business, and the business goes in debt to continue operations, and then management (the directors) say "cancel my debts" and all is forgiven...Would the banks allow that?...only through bankruptcy(to be carved up by the banks!)... Proves the point that banks have no skin in the game...

Usury is a sin...

" and overthrew the tables of the money changers "...

Tide turns I think when "we" start "overthrowing some tables"....of the money changers... Christ talks about them, but we don't because of AIPAC. Something was lost in Christianity(I ponder) when the church no longer called out against usury and took off their crosses to visit Rabbi is Israel.

Baybars · 2023-01-16T20:49:21Z

TBoris Thank you for that explanation. It IS a freaking game which the bank always wins.

Christianity changed forever once the Holy Roman Empire figured out how to make a buck from selling salvation.

ReRan · 2023-01-16T00:43:51Z

"the Biden economy may be the worst ever."

You think?

VooDoo6 · 2023-01-16T03:15:35Z

TNSTAAFL -

Was already jacked before Biden regime exponentially added more. Just printing Casino Money. Greed is good. Nothing exceeds like excess. Morally Bankrupt. Like pavlovian crack addicts crawling the carpets for some more usury taxes & citizen sanctions of slavery.

Guido Goldman, the CFR and the German Marshall Fund [Link]

Dwoods44 · 2023-01-16T14:43:10Z

Great comments. I like the quote " banks are predicting a major increase in defaults in 2023."

Gee, aren't they going out on a limb to make such a prediction. It only follows the plandemic which crippled small businesses throughout the US and the vax bioweapon which eliminated many mortgage holders.

Dwoods44 · 2023-01-16T14:44:39Z

Dwoods44 What is this preparation for? The central banks want their version of digital currency, completely monitored and controlled by them.

TBoris · 2023-01-16T15:10:13Z

Dwoods44 Read my comments further up. It is (by my analysis) further consolidation within the banking cartel that "this preparation" amounts too.

The dashboard marches on:

[Link]

ReRan ·

Dwoods44 Spot on.

· 2023-01-16T18:07:32Z

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Biden economy: Banks are preparing for billions in losses in 2023

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