khaine
kiwifarms.net
- Joined
- Jan 31, 2021
Capitalism is supposed to be about profit and loss, you bail out the losers, there is no end to the loss.
Bank Run Watch 2023 after Silicon Valley Bank shutdown - Over 97% of SVB's assets were not FDIC insured
- Thread starter chiobu
- Start date
- Joined
- Dec 19, 2022
- Joined
- Jul 30, 2016
lmao the cope on CNBC right now.
"Bank runs happen all the time, we just don't hear about it"
"Bank runs happen all the time, we just don't hear about it"
- Joined
- Sep 19, 2018
They have steel-toed boots bought and paid for by the taxpayer so they don't have to worry about hurting themselves.
A distinction without a difference and you know it.
ATI Escapee
kiwifarms.net
- Joined
- Apr 7, 2022
Youre right, depositors are going to be taken care of shareholders and the likes.....nope. Stocks worth zero now for SBV and Signature I assume?
- Joined
- Jul 4, 2014
Like I said earlier in this thread this is going to be more like the early 00's. Not a whole lot happened with that one, they just swept it under a rug somewhere .
spinal gas chamber
kiwifarms.net
- Joined
- May 19, 2020
Not entirely true. Deposits being covered means the assets are (going to be) there, which means there’s a currency base to make loans against, which means there’s a reason to acquire assets (read: accounts) in the FDIC sale. So there is value for shareholders.
E: it also means we are fucked. This is the federal government not guaranteeing the dollar, but also guaranteeing that there is never any risk in loans. And we all saw what happened when that model was applied to college loans.
- Joined
- Jul 18, 2017
Its always fun to speculate how often they can do that before they run out rugs.
- Joined
- Dec 18, 2022
Here I was thinking it was going to be Auto loan backed securities. Or terrible debt. I still can't believe it was fucking treasury bonds though.
- Joined
- Dec 12, 2022
- Joined
- Jan 21, 2020
Second bank shuttered
The sheer fucking cope going on right now on cnbc is unreal.
The sheer fucking cope going on right now on cnbc is unreal.
- Joined
- Sep 19, 2018
They plan on stuffing it under the rug until the Republicans come into office.
They also plan on never letting the Republicans take office again after Trump happened.
No, these things aren't completely contradictory. Why do you ask?
Likely not fucked unless they were more exposed than they led on, though banking as a whole is a whole lot of bankers playing fuck-fuck games with your money. Sure would be nice if there was a stop to that idea! Glass-Steagall stopped the fun for the financial industry though and it had to go in the 90's.
- Joined
- Dec 18, 2022
I mean just let a republican president get elected, and hold the house and Senate. None of the power all of the blame
- Joined
- Jan 17, 2021
Depositor protection was expected at minimum, but it doesn't really do anything to assuage the market come tomorrow. The second bank failure tells the tale: there's going to be several more failures, and the only question is how long the Fed and Biden admin both can hold out before having to make the politically suicidal decision of direct bailout for the sake of stability and avoiding devastating employment figures. I give it a week.
- Joined
- Jul 18, 2017
The issue is the Banks were not using the T-Bonds for their intended purpose. As a store of value independent of their own fractional reserves. You hold the T note because it has a guaranteed return. That return is what you should count as value on your books, not the entire value of the note itself. But in todays hyper fast economy, the idea of waiting 10-30 years for a Note to mature just had too little financial incentive. So they packaged their bonds, resold them, counted them in their entirety as assets held to back the accounts payable that they were using to loan money with and the explosive charge was set.
While this made perfect sense in 2021 (when I wrote the "issues" thread). The value of the bonds were increasing because inflation was low and interest rates were stable. The problem though was those Bonds were being used to back up incredibly risky market speculation. Speculation like investing billions of dollars in Silicon Valley Start Ups. Eventually inflation WOULD hit and the Fed would have to start raising rates. Which in turn has caused the value of the bonds to drop. Which is a problem if those bonds have been securitized to back up existing obligations.
The issue was there, plain as day to see. I saw it 2 years ago. But I guess I am just a simple retard on a fruit farming forum. Not some high speed new york banker.
- Joined
- Dec 12, 2022
Well I'm somewhat relieved, I know chase can be fucky but they're also huge; hopefully they can survive this and I chose a battleship instead of a raft. Also Glass-Steagall?
- Joined
- Jul 1, 2015
Is there a chance that this fiasco will end reaching Evergrande-levels of fail? And I think the CCP didn't bail them out at the time, or did they?
- Joined
- Jul 18, 2017
So long as your account is below 250,000 dollars and your Bank is part of the FDIC, you don't have to worry about anything, even if your bank tomorrows. If the Government has to literally print 100 dollar bills and mail them to you, they will do just that. The problem is FDIC backed accounts are chump change compared to the accounts that are not FDIC insured.
China did in the end Bail Out Evergrande, but in true Commie fashion they also rounded up the executives and nobody has heard from them since. They also gave the small time investors the shaft. All those people who bought apartments never got them, and were never reimbursed. The only thing the CCP cared about was the macro level stability. They can do that because they are an authoritarian state not answerable to anyone but themselves.
At the moment its not AS bad as Evergrande, but it could rapidly get much worse depending on how next week goes.
- Joined
- Sep 25, 2019
The fed backstopping deposits just means that there's not a liquidity crunch. The main goal is still to sell to another bank, who are going to lowball the shit out of it since the FDIC doesn't really have any incentive to do anything other than covering depositors.
- Joined
- Dec 12, 2022
Uh, that limit will be no issue. And it's Chase, so yes, I am insured. This is one of the few times being a scrub has advantages. At least I have no loans or investments.