GSI Banner
  • Free Access
  • Contributors
  • Membership Levels
  • Video
  • Origins
  • Sponsors
  • My Account
  • Sign In
  • Join Now

  • Free Access
  • Contributors
  • Membership Levels
  • Video
  • Origins
  • Sponsors
  • Contact

© 2026 Grey Swan Investment Fraternity

  • Cookie Policy
  • Privacy Policy
  • Terms & Conditions
  • Do Not Sell or Share My Personal Information
  • Whitelist Us
Ripple Effect

Data So Bad, The Fed Buried It

Loading ...Addison Wiggin

July 28, 2025 • 1 minute, 28 second read


banking systemFedunrealized losses

Data So Bad, The Fed Buried It

The Federal Reserve is sitting on a time bomb…

It has over $468 billion in unrealized losses.

That reflects assets on the balance sheet that are trading for much lower than what the bank paid for them.

Yes, that’s the Fed’s the job as “lender of last resort.” They buy stressed assets, swap them out with higher-quality ones, and then either absorb the loss or wait for prices to improve.

But here’s trouble. The Fed isn’t alone in holding unrealized losses.

The commercial banking system also saw its unrealized losses soar as the Fed started hiking interest rates in 2022. Three of the largest bank failures in US history occurred between March and May 2023.

It got so bad, so quickly, the Fed discontinued the data partway through the year:

Turn Your Images On

America’s banks were in trouble before the Fed finished hiking interest rates – so much so that
the central bank discontinued reporting the data.

Silicon Valley Bank (SVB) – the second-largest bank failure in U.S. history in 2023 – grabbed the most headlines.

SVB had total losses of $16.1 billion alone—nearly 25% of the losses reported in 2022 a year earlier.

Today, with interest rates still relatively high, commercial banks continue to sit on massive losses.

The Fed’s existence is a paradox…

On paper, it’s supposed to smooth out economic cycles.

In reality, it tends to exacerbate them. Each crisis that brews is larger and more far-reaching than the last.

Since the 1987 crash, each crisis—which should be a time to clear out bad debts and start fresh—has been covered up with more and more freshly printed money.

Only this time is different.

The Fed became insolvent for the first time in its history in September 2022.

The crisis is coming to a head.

~ Addison


Marin Katusa: Silver Miner Q4 Earnings Will Set Records

January 16, 2026 • Addison Wiggin

Mining stocks amplify everything. First Majestic went from losing money to 45% margins without building anything new. They just held the line on costs while silver did the heavy lifting.

That cuts both ways. If silver drops hard, margins compress just as fast. Same leverage, opposite direction.

The miners with the lowest costs and cleanest balance sheets will hold up best in a pullback and capture the most upside if the deficit keeps grinding.

Marin Katusa: Silver Miner Q4 Earnings Will Set Records
“Dispersion Rising”

January 16, 2026 • Addison Wiggin

Economists at Goldman Sachs said this morning they expect core inflation to finish the year around 2% even while GDP rises at a “surprisingly strong” 2.5% clip.

In our view, their inflation forecast is optimistic. Their GDP call? Modest.

The last time we pumped this much liquidity into the system — 2020 through 2022—the result was a manic asset bubble, runaway inflation, and an epic hangover at the Fed.

Goldman’s optimism has triggered a fresh round of bullish bets: cyclical stocks are rallying, “dispersion” in the S&P 500 is spiking, and the Fed is expected to cut interest rates twice before Jerome Powell gets kicked out of Washington at the end of his term on May 15.

“Dispersion Rising”
The Boom Behind the Data

January 16, 2026 • Addison Wiggin

Anecdotally, we’re hearing stories of warehouses full of GPUs sitting unused for lack of energy to power them. It’s a natural feature of the heavy capital investment in new machines. The grid has to catch up!

While Trump’s great reset rolls on in 2026, keep an eye on modular nuclear reactors and increased demand for uranium, natural gas and related resources.

The Boom Behind the Data
The Economics of Precious Metals Stocks Today

January 15, 2026 • Shad Marquitz

These PM producers are literally printing the most ‘hard money’ that they ever have at these metals prices and record margins here at the midway point in Q4.

If there ever was a time for this sector to get overheated and frothy, this would be it… only that isn’t what we’ve seen playing out.

PM producers are still insanely profitable at even at current metals prices and should be far more valuable based on their margins, revenue generating potential, and their resources still in the ground.

The Economics of Precious Metals Stocks Today