The shell game being played by bankers might keep uninsured deposits hidden, but it doesn’t mask larger problems in the industry (or the economy).
“The banking industry had some shenanigans going on with their deposit labeling,” explains Josh Steiner in this clip from The Call @ Hedgeye. “In the wake of Silicon Valley, a lot of banks went back and effectively restated their amount of uninsured deposits by ascribing collateral to uninsured deposits and calling them insured.”
This sleight of hand won’t do anything to change Keith McCullough’s bearish outlook, even if he does get pushback from investors chasing market performance.
“Why does bankers playing a shell game not surprise me?" McCullough asks.
"Bank lending’s slowing, the economy’s slowing. Student loan payments are going to accelerate, therefore consumer spending’s going to decelerate. These are really obvious things we keep repeating to people, and when you add them all up, they equate to a lot of GDP. That’s what the economy’s going to look like in three to six months.”
Watch the full clip above.
