Banks Pucker Up, Not Making New Loans

GM and BRRR. Hope everyone enjoyed the long Easter weekend.

News and volatility has been muted, as markets have been slow to digest last week’s mixed jobs data and prepare for this week’s CPI and FOMC minutes on Wednesday.

Early this last week, the JOLTS (jobs opening and labor turnover) report indicated record low job openings across the US, pointing to a broad pullback in desire to hire new workers. But Friday’s unemployment report revealed lower-than-expected unemployment numbers at only 3.5%. However of the 235k net new hired workers last month, 50k were in the leisure & hospitality space, which predominantly consists of waiters and bartenders.

Markets look to Wednesday’s inflation data (CPI) and FOMC Meeting Minutes for the next volatility event. Buckle up.

CPI is also our next prediction contest poll right below. Make sure to vote before Wednesday morning at 8am!

Here’s what we brrr’d today:

• Record Loan Collapse: Banks hoarding cash in fear

• ETH Unstaking Looms with Network Upgrade Imminent

Record Loan Collapse

• The Dallas Fed's Banking Conditions Survey revealed that loan demand has declined for the fifth period in a row, with worsening business activity and sharp contraction in consumer loans. Credit standards and terms have tightened sharply, and loan pricing has increased.

• The recent collapse of Silicon Valley Bank led to the biggest two-week drop of US commercial bank loans and leases on record, which indicates the sharpest tightening of credit conditions in history, potentially damaging the economy.

• Small banks experienced the bulk of loan destruction, amounting to $73.6 billion in the past two weeks. Large banks saw a sizable $23.6 billion decline, and lending at foreign institutions dipped by a modest $7.5 billion.

• As loans collapse, commercial bank deposits have also continued to decline, dropping by $64.7 billion. This has forced banks to liquidate and monetize loans in order to meet redemption requests.

• The ongoing decline in deposits and tightening credit conditions are likely to lead to further caution in extending credit, a drop in the total number of loans, and the need for the Fed to step up with emergency measures to avoid a broader banking sector crisis.

  ZeroHedge

ETH Unstaking Looms with Network Upgrade Imminent

• Ethereum's Shanghai and Capella upgrades are scheduled for April 12, enabling users to withdraw staked ETH and rewards.

• Over 18 million ETH ($33.6 billion) has been staked and locked into the Beacon Chain across 564,000 validators with a current annual percentage yield of 4.4%.

• The withdrawal process might take weeks to complete due to high demand, according to analyst Andrew Thurman from crypto data platform Nansen.

• Ethereum Foundation states a maximum of 16 withdrawals can be processed within a single block, totaling a maximum output of 115,200 per day.

• Despite the ability to withdraw staked ETH, many users may re-stake their funds to continue earning rewards, making it difficult to assess the extent of withdrawals.

  Decrypt

AI ART OF THE DAY

Ethereum creator Vitalik Buterin getting the Shanghai upgrade across the finish line

The BRRR’s Portfolio

Tech selling off today, but XOM and the two crypto assets keeping us afloat.

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The BRRR is meant for informational purposes only. It is not meant to serve as investment advice. Please consult with your investment, tax, or legal advisor before making any investment decisions.