They are not going to usher in a 2008 esq meltdown. The government has taken tremendous action to prevent bank runs, and thus far the bleeding has been halted. Other banks may fail, but a larger contagion has ended with the fed backstop.
This is why I believe regional banks as a whole will recover: the government has intervened early and aggressively to prevent a meltdown. Betting on any one bank is foolish. Thus a regional banking etf like KRE presents an amazing diversified opportunity.
Regulations are slow and cumbersome. Either way it’s not in regulators best interest to harm the already fledgling regional banking sector. Profitability will return to pre-crisis levels long term.
Yes rate hike are hurting banks, but elevated rates are temporary. Rates will not be this high long term and banks will profit from the bonds bought during this high interest environment.
I’ve already dumped 30k in KRE and this is probably the best investment I’ve made in my life. Shouldn’t we be greedy when others are fearful?
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