In underwriting commercial deals, bankers are always mindful of mismatches: mismatches between projections and reality, mismatches between what the most recent tax returns might say versus the current income statement, even mismatches between what the enterprise requires compared to the skills and experience the borrower is bringing to the table.
Having lived through the S&L collapse when my bank changed hands 9 times and had 11 different names (in three years!) I don't think depositors have anything to worry about. I do think the endless fountain of nearly-free lending has dried and we're finding out whose business model and big successes were entirely dependent on ultra-cheap lending/a de facto subsidy from the Fed.
elm
the sub-2% inflation with free money only works if nobody sneezes
Having lived through the S&L collapse when my bank changed hands 9 times and had 11 different names (in three years!) I don't think depositors have anything to worry about. I do think the endless fountain of nearly-free lending has dried and we're finding out whose business model and big successes were entirely dependent on ultra-cheap lending/a de facto subsidy from the Fed.
elm
the sub-2% inflation with free money only works if nobody sneezes