Yes
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Were the bank’s high rollers involved somehow in the various green energy scams?
JWK
80% of green energy money taxed away from the wages of hard working American Citizens WENT TO Obama’s corporate donors!
Up to the elbows.
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Not sure if this belongs in this thread, or some BLM thread.
Either way, it’s woke-upon-woke, and a nasty tryst of bad players.
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I suspected so.
JWK
History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance. James Madison
There are more banking regulations now than ever in US history.
All those calling for “mah reglations!” don’t know what they’re talking about. Centgov will use this as another excuse.
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I’m from the government, and here to help you.
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Yeah well . . .
Their stock traded in exactly the same pattern as a ponzi scheme would trade.
“Lack of regulation” or “failure to buy insurance” or “Long term bonds”
sound like attempts to avoid mentioning the emperor’s nakedness.
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I assume most of the ones who had deposits in this bank and others like it that failed were venture capitalists and swindlers, not regular folks whose direct deposit goes in on the 1st and 15th.
Does anyone think the regular banks will eventually be hit, or maybe the media will try to scare folks into bank runs on normal, small-town banks? That could kill two birds with one stone for the leftists: it would be an indictment of “capitalism” and also would be the perfect pretext to force the CBDC on everyone, for their “safety”.
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Successful established business people also routinely have accounts over $250,000…
EX. Years ago I worked in a Walmart produce section. (Let’s consider that roughly to one small produce store, one small bodega etc…) Our gross sales were $20,000/day on an average weekday…----> $20k/day X 30 days = $600,0000
That might happen.
The recent Fed/Treasury announcement
- guarantees the big banks no matter what
- provides the small banks enough “magic money” that as long as there is no run on the small banks, they have no worries.
But Sec. Janet Yellen botched her comments in front of a congressional committee, and the video is circulating on social media. It is immediately triggered numerous large account-holders to move their accounts out of small banks. That MIGHT be the start of a bank run on small banks.
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Apparently US banks are holding securities equaling over $600 billion of unrealized losses. Of course all banks don’t have the same exposure levels, but there is probably some exposure at every bank, large and small.
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Yes, but since banks are restricted iot investing in bonds
and
bond values go down every time bond rates go up
so banks have always sat on varying amounts of unrealized losses.
“Unrealized losses” are so common the phrase is not even a new one.
$600b should raise an eyebrow would be wrong of us to pretend “They have $600 billion now and the normal number is zero.”
Worse still, it would be demagoguery to pretend that, and then use it to push a pre-conceived agenda.
It’s all about the decisions they made in the portfolios when rates started rising. They should have identified their longest duration holdings for trade and reinvestment into short duration holdings and as rates rose, more and more should have been transferred to shorter yields. This is a problem of incompetence leading to illiquidity.
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Yes.
Over in Twitter financial discussions (Fintwit) and stocktwits.com, and on CNBC and on Bloomberg I sometimes encounter people who, no matter which way the wind blows they take it as a sign “The Fed is going to pivot. The free money will come back.” We call them Permabulls.
It’s kind of a dumb narrative, but it is fairly common.
In 2008 people laughed because at some of the big banks different portfolio managers were actually betting against each other. Well at SVB and other places it appears 100% of the money was being bet that interest rates below 2% are the norm, they will come back soon. Stocks only go up etc…
It’s not always a “Critproglandia” thing.
It can also happen when a 22-year-old engineer with zero business experience thinks he can run a business.
There is always some emotionally foolish rational behind incompetence. Debt securities are one of the most difficult instruments to manage. I learned a serious lesson about markets early on. They don’t telegraph the next winner, but they do tend to point out what should be avoided. And when something is favorable across an asset class by more than 2 standard deviations for an extended period, it will swing negative in the future by more than 2 deviations.
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Hmm I have not heard that particular rule, but certainly there are identifiable patterns. In human experience anything that happened more than “X” years ago might as well have happened 2,000 years ago and X is almost always a number between 8-16.
