US Banking Crisis - Part 2

In this second video of the emerging credit crisis, the speaker continues the discussion around banks increasing their balance of borrowed assets and contraction in non-borrowed assets.  He discusses that the relationship between borrowed and non-borrowed assets has become very negatively disproportionate.  Non-borrowed assets have actually turned negative. 

He walks through the relationship between the stock market and long term treasury bond yields.  He mentions that the S&P 500 printed a double top at the 1500 area and LT interest rates have topped as well.  He sees rates moving lower and the Federal banks having no cash on their balance sheet to weather a downturn in the US economy and the stock market.

Finally, he is concerned that the US dollar will take a hit due to the fact that the federal reserve will start printing huge amounts of cash to deal with the banking crisis.  In hindsight, this speaker was dead on with his analysis.