U.S. banks' unrealized losses actually amount to $1.75 trillion, or 80% of their capital, causing hundreds of U.S. banks to be now insolvent.
In January 2022, when yields on U.S. 10-year Treasury bonds TMUBMUSD10Y, 3.471% were still roughly 1% and those on German Bunds were -0.5%, I warned that inflation would be bad for both stocks and bonds.
Higher inflation would lead to higher bond yields, which in turn would hurt stocks as the discount factor f...
