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100% Loan Losses Loom as Fed Shrinks Balance Sheet- Banks on the Brink

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by ITM Trading
Monday, Sep 01, 2025 - 17:17

The Fed is playing God again. Chris Whalen, chairman of Whelan Global Advisors, warns that the central bank’s reckless experimentation—low rates, QE, and now rapid balance sheet reduction—is rattling the financial system. Liquidity is vanishing, money markets are jittery, and banks are bracing for losses.

Commercial real estate and apartment loans are already seeing 100% defaults when trouble hits. Investors beware: volatility is baked in. Whalen urges caution and opportunism—treasuries, preferred stocks, reliable dividend payers, and gold at the core. The Fed may have stopped asking permission, but your portfolio shouldn’t pay the price.

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