- Joined
- May 6, 2020
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
- Jul 18, 2017
No joke, if Credit Suisse goes under shit will get ugly fast. I wonder how Biden will justify bailing out a Swiss bank.
Citron
kiwifarms.net
- Joined
- Jan 4, 2023
If you look at the FDIC balance sheet which groups information on all banks in the US as an aggregate, banks are likely sitting on at least 2 trillion in unrealized losses, probably more, from their assets, which outpaces their ~1.7 trillion in equity. In other words the entire banking industry is insolvent to the tune of $400 billion because high interest rates killed the value of their investment securities. The banks have panic borrowed $250 billion from the FHLB in the past quarters to stay afloat.
I've been wondering when TPTB would try introducing CBDCs and this crisis is likely the backdrop for it. Central banks would issue CBDCs directly; they don't even need commercial banks to issue money anymore, it's no skin off their backs if the small ones go broke. The plan could be to let the banks fail and offer CBDCs as the "solution" when people have lost their deposits or Venezuela-level hyperinflation sets in - the form the crisis will take depends on the Fed's actions. Bo Li gave away part of the plan at the last IMF meeting by saying they could increase 'inclusion' (AKA get more people in the CBDC trap) by making CBDCs legal tender and rolling it out to welfare recipients first (1/3 of the US receives some kind of benefit). CBDCs are checkmate for freedom, they're programmable and the controllers can decide which stores your dystopia bucks work at and how far from your house you can spend them, what you're allowed to buy & when you're allowed to do it, where you're allowed to travel to, which foods you're allowed to eat, etc. Bo Li seemed especially keen on controlling food, bringing it up twice.
I've been wondering when TPTB would try introducing CBDCs and this crisis is likely the backdrop for it. Central banks would issue CBDCs directly; they don't even need commercial banks to issue money anymore, it's no skin off their backs if the small ones go broke. The plan could be to let the banks fail and offer CBDCs as the "solution" when people have lost their deposits or Venezuela-level hyperinflation sets in - the form the crisis will take depends on the Fed's actions. Bo Li gave away part of the plan at the last IMF meeting by saying they could increase 'inclusion' (AKA get more people in the CBDC trap) by making CBDCs legal tender and rolling it out to welfare recipients first (1/3 of the US receives some kind of benefit). CBDCs are checkmate for freedom, they're programmable and the controllers can decide which stores your dystopia bucks work at and how far from your house you can spend them, what you're allowed to buy & when you're allowed to do it, where you're allowed to travel to, which foods you're allowed to eat, etc. Bo Li seemed especially keen on controlling food, bringing it up twice.
ATI Escapee
kiwifarms.net
- Joined
- Apr 7, 2022
I don't think the US is gonna be able to even if it wanted to....
- Joined
- Jul 18, 2017
Does anyone even know how big their balance sheet is? If I was a wealthy depositor in them I would be shitting bricks right now. Lets hope they kept a decent reserve handy for circumstances like this...aww who am I kidding. I bet they are full up on Bonds like everyone else instead of cash.
- Joined
- Nov 16, 2022
If the banks hold their long dated bonds to expiry then technically they don't get a loss. SVB fucked up by putting just about all of their deposits in bonds, and then selling at a loss when the curve inverted.
CS shouldn't be a surprise to anyone given the problems it's been having for *years* now. Anyone who gets fucked, was alseep at the wheel and deserves it.
CaptainRockall
kiwifarms.net
- Joined
- Dec 12, 2022
In the UK, Barclays is shutting over 100 branches and whsipers are that they are the next 'Northern Rock'.
- Joined
- Jul 18, 2017
There is just something so visceral about seeing a straight line on a graph.
- Joined
- May 9, 2017
I see, so that's where we can find the headquarters of the legendary Based Department...
- Joined
- Mar 30, 2019
Aren't they also the last remnant of the Holy Roman Empire? IIRC they were the only one of the hundreds of tiny polities not to be incorporated during the German Unification.
- Joined
- Jun 24, 2020
We've dumped billions into Ukraine, which is not a NATO member and which we were not treaty-bound to defend. What's a few billion dollars more to "protect our allies' finances? Do you want Putin to win?"
- Joined
- Oct 21, 2018
You cant escape it if CS fucking dies. They are a counter party in pretty much every field of investing and if they go, everything grinds to a hold.
yes, history just forgot about them sometime in the 19th century.
- Joined
- Sep 29, 2018
It's the Dark Souls of banking.
(yeah, I'm gonna kick my own ass for that one)
- Joined
- Mar 30, 2019
Honestly, being a forgotten country sounds like a blessing in disguise. Can't get fucked with much if nobody knows who (or if you're American, where) you are and you don't serve much of a purpose for TPTB.
- Joined
- May 9, 2017
What bothers me about this isn't that people who do this sort of thing for a living could've seen this coming, or that the taxpayer is going to have to bail the banks out for their gambling problem, or that no one involved will ever be seriously punished. I could live with all that.
What really chafes my ass is that absolutely nothing will be done to prevent it from happening again.
What really chafes my ass is that absolutely nothing will be done to prevent it from happening again.
- Joined
- Jul 18, 2017
They honestly believed they were so smart they could do the exact same shit as in 2008, but this time it would work because the knew better. They call it modern money theory and it's essentially tinkerbell economics. Actual value is immaterial. If you clap your hands and believe, and everyone else's claps along and believes REALLY HARD, money can be worth whatever you want it to be worth.
That's not a joke btw. That is honestly what the banking and political class think.
- Joined
- Feb 13, 2019
Wonder how big the bricks Biden and Co are shitting over this right now. They've got to keep the lid on this particular bomb for another year and a half if they want to stand a chance at reelection. Good fucking luck with that, they might hold things off for a few months, but beyond that? Lmao.
- Joined
- Dec 12, 2022
I still need to write up on how the venture capitalists are trying to salvage their reputations after begging Uncle Sam to save them from the disruption they oh so enjoy inflicting upon others, but beyond laughing at those I deem to be beneath myself, I can't bother to care. When people complain that the young don't want to work or save their money, remember shit like this that makes all of it pointless.
- Joined
- Oct 21, 2018
Best case is that the bomb will go booom at market closing on fryday(without intervention). but thats the best case, the chain is rapidly breaking with some counter parties not giving out new CS CDSs. That means the whole system is minutes away from breaking and everyone is looking at swiss regulators right now, if they fail to calm the situation ECB and FED have to act this night or the stockexchanges dont even have to open up tomorrow because they will be stopped out as fast as possible.
- Joined
- Dec 4, 2013
33 banks on the list, you say... interesting.