Banking & Real Estate - Will it Matter for Markets?
“It’s not nearly as bad as it was in 2008, but trouble happens to banking just like trouble happens everywhere else. In the good times you get into bad habits… When bad times come they lose too much.” – Charlie Munger, Vice Chairman of Berkshire Hathaway, speaking on regional banks exposure to commercial real estate.
The quote above is from a Financial Times article Chris Beard, CFP® and Jesse Hansford, CFP® reference in this week’s episode. It feels particularly helpful with the underlying themes of the week’s conversation – caution, humility, and patience. Things don’t have to get as bad as 2008 – one of the most challenging recessions in American history – to require a healthy respect for the risk signals occurring in this current environment.
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0:00 – Intro
0:39 – Big Week for Economic Data Releases
1:06 – First Republic Bank… #fail
2:09 – The Challenge of the Fed Rate
4:32 – The Challenge of Commercial Real Estate
6:51 – The Challenge of Deposit Drain – “Bank Walk”
8:40 – Which Businesses Rely on Banks?
10:31 – Humility and Patience in this Environment
#RegionalBanks #banks #fedreserve #fed #rates #commercialrealestate #firstrepublicbank #KRE