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The FDIC data shows a significant increase in unrealized losses at banks , primarily due to the Fed's interest rate hikes . These losses have reached a peak of $655 billion but have since declined slightly to $512 billion. While interest rate cuts could help mitigate these losses, they may also negatively impact bank profitability . There are concerns about potential risks beyond unrealized losses, such as a recession or financial crisis, which may be influencing the Fed's decision to cut rates. FDIC Quarterly 2024 Vol 18 No 2 Notes HTM: Stands for Held to Maturity . These securities are purchased with the intent to hold them until maturity. Unrealized gains or losses on HTM securities are not recognized in the income statement. AFS: Stands for Available for Sale . These securities can be sold at any time. Unrealized gains or losses on AFS securities are recognized in other comprehensive income, which is a part of equity. Proactively Assess Your Bank’s Financial Health with FA...

Video1.  Markets Are Too Complacent, Creating "A Recipe For Pain (YouTube link ) During his interview with Adam Taggart , Ted Oakley emphasized the potential pitfalls of a bear market. One thing I find about bear markets that people seem to forget is that they can come on quickly . They don't always have to crash, but they can descend rapidly . You might look up a few months later and realize how much the market has fallen. It's often when people lose their complacency and start to worry that the real pain begins. The biggest problem is that people become complacent when prices are high , and that's a recipe for trouble in the future . Historical Bear Markets and Corrections What does history teach us about corrections within bull markets (those that don't escalate into something more severe)? Goldman Sachs provides some insights:[1] Table 1 presents a historical overview of bear markets and corrections in the S&P 500 since the end of World War II. We iden...

Housing Demographics with John Burns’ Eric Finnigan (YouTube link ) Eric Finnigan leads demographics research at John Burns Research and Consulting, helping clients in the housing and real estate industries understand demand based on demographic trends. He views demographics as a predictive tool, likening it to a crystal ball for future trends. His interest in demographics began around 2013-2014 while working for a capital allocator firm. He analyzed demographic data to predict shifts in housing preferences, such as Millennials moving from urban areas to more affordable regions. Finnigan has been in the housing market research field since 2007, gaining significant experience during the subprime mortgage crisis. His career has been shaped by a deep dive into demographics and housing economics. Positive Housing Outlook: Rising Headship Rates The headship rate , which is the percentage of adults who are heads of households, is a key indicator for understanding demographics and housing d...