Headline:
You Can Ignore Reality…But You Cannot Ignore The Consequences Of Ignoring Reality.
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Bank Capital Structures = Debt + Equity…
Which Are Both Structurally Supported By Deposits.
Deposit Instability/Outflows = Stress + Weaken Bank Capital Structures…
Thus…Severely Depressing Investor Confidence.
Furthermore And Importantly…Regional Banks Are Subject To A Less Stringent Regulatory Framework…Than The Systemically Important TBTF Mega-Banks…
Resulting…For Now…In Much Harsher Financial Market Punishment For The Regional Banks.
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So…UNTIL Investors/Traders Perceive ALL Banks As Sufficiently Capital Fortressed…
Architected By A Diversified + Stable Depositor Base…
Confidence In Most Financial Capital Structures…Especially The Regional Banks …Will Continue To Be Tremendously Scrutinized + Tested By Market Actors.
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However…When Investor Confidence + Perception Nadir…
The Subsequent Rally In Financial Equities Will Be Exceptionally Steep + Swift.
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Contact The Author: Dominate@GlobalSlant.com