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/biz/ - Business & Finance

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58566222 No.58566222 [Reply] [Original]

So losses for the bank means this money is unreclaimable added to circulating and contributes to inflation?
Because for things like housing the money lent never sees circulation, and the mortgage payment functions as an absorbtion on circulating currency

>> No.58566233

>>58566222
Wow that's a big number

>> No.58566242

>>58566222
unrealized losses aren't actually losses, they are bonds that fell in market value, as in if the bank sold them today they would lose money, but if they hold them to maturity there are no losses, in effect it traps the banks in the bonds unless they want to sell them at a loss, but doesn't mean the bank is actually losing any money.

>> No.58566253

>>58566233
I don't even think hyper inflation matters all we do is use scientific notation and change the exponent every now and then

>> No.58566271
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58566271

>>58566253
>inflation isn't real, just change the numbers

>> No.58566295

>>58566242
But time value for an established bank is almost irrelevant so long as their margin on collections is like not significantly more negative than their assets? So alone this metric is almost entirely useless without knowing more about the balance sheet?

>> No.58566592

>>58566295
loan losses do matter because it affects how leveraged a bank is, if the mark to market value of the bonds goes too low they could be forced into selling due to being overleveraged which could force them to eat losses, it also constrains their ability to lend or create new loans.

>> No.58567444
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58567444

>>58566253
https://www.france24.com/en/live-news/20211001-a-million-bolivars-become-one-as-venezuela-recalibrates-battered-currency

>> No.58567663
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58567663

>>58566222
Inflation isn't a real thing to me cuz my bags are getting bigger thanks to CONAN kek