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#374 Chris Whalen: Fed Policy Losing Efficacy, Rate Hike Coming Anyway, Private Credit Defaults at 6%
In this episode of The Wrap, Chris Whalen reveals bank incomes are up but the real story is the trading side of the house driving earnings, not lending, as deposits grow faster than assets forcing banks into trading operations. He warns private credit default rates have hit a record 6%, nearly 10 times worse than bank default rates, signaling the end of the credit cycle as non-banks now lead lending. Whalen predicts double-digit inflation remains likely, expects QE5 to come despite Warsh's denials since the Fed balance sheet must grow proportionally with federal debt, and argues Fed policy is…
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