Taps Coogan – May 18th, 2023

When it comes to banking, we’re big fans here at The Sounding Line of Chris Whalen, Whalen Global Advisors Chairman, bank analyst, and author of The Institutional Risk Analyst. He recently spoke with Macro Voices‘ Erik Townsend about what is going on with SVB, First Republic, and the ongoing banking crisis.

The long ranging interview doesn’t lend itself to excerpts but the punchline is this: Mr. Whalen sees the Fed potentially cutting rates later this year, which may create a short relief rally in housing, but ultimately home prices are headed back to 2019 levels. He sees real crisis risk in the banking sector if the Fed doesn’t cut rates or otherwise provide discounted funding to banks.