Banks are doing awesome...except for the half trillion dollars in bond losses

But whatever. Who cares? Nobody yet, but they will when everyone suddenly needs dollars and banks have to sell and realize those losses. Either that or the Fed prints the difference.

Mr. Stay Puft Hyperinflation Marshmallow Man

This is from Barron's:

Industrywide, total unrealized losses could top $500 billion, up from $364 billion at the end of the third quarter. These losses involve all banks insured by the Federal Deposit Insurance Corp. The total potential losses would still be narrower than the nearly $700 billion at banks at the end of the third quarter of 2022. Bank of America is scheduled to report earnings on Jan. 16.

The higher interest rates go, the higher unrealized losses become. The 10Y yield is close to a new high, so we'll have a new record when they get there.

As the MSM likes to quip, unrealized losses don't matter. That is, until banks have to sell their paper assets in a hurry because they're short on cash and get margin calls or depositers flee. That happens in a dollar crunch, obviously, which is when unrealized losses become realized. Very suddenly.

Gold is Pouring Into New York at the Fastest Rate Since the Lockdowns