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Will Bank Turmoil Cause The Fed Pivot? | Weekly Round Up

Inflection Point

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The Effects of Leverage on Banks

A normal bank would be 10, 11, 12 times levered. But Deutsche Bank is materially below that today. So I don't think there's more stress in the system. Banks are by definition, confidence games. And when their systematic weakening of confidence and what to me is different is not the stress in the banking system but a different type of stress. The fragility caused by irresponsible, reckless, ill-intentioned venture capitalists who set off these runs.

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