Banks?

[Fester]

It shows their rate increases are starting to have a serious impact. Also, they my pause in order to help add more confidence in the system near term.

Ahh thanks for the insight.

 

[lunkerslayer]

So did the federal reserve find a boat load of money to pay off these accounts or is our tax dollars being used to pay these accounts that dealt with high risk loans to woke big tech adventures.

 

[lunkerslayer]

 

[lunkerslayer]

 

[lunkerslayer]

https://markets.businessinsider.com...bank-failure-fears-contagion-liquidity-2023-3
Dow is going down watch for more stop trading for big bank this week
Thanks Joe Biden

 

[Fester]

So with all these issues in banks etc. The way I understand it is no matter the bank as long as it is FDIC insured and the account is under 250k your money is safe right?

 

[lunkerslayer]

So with all these issues in banks etc. The way I understand it is no matter the bank as long as it is FDIC insured and the account is under 250k your money is safe right?

Here you go a link to your question
https://www.fdic.gov/news/press-releases/2023/pr23016.html

 

[CAH]

Markets are up

 

[lunkerslayer]

For now

 

[db-2]

Fester:

Safe as long as the USA is financially safe. db




Plus:

FDIC has 50 billion in reserve so one needs to hope your bank is one of the first but then where do you put it? Another bank, under the mattress, gold or silver? Land. Ladies and beer, maybe???????????

Finally, the wife and i have cash in the bank. Now another worry. Not sure i will make it another year with all these worries including the bomb. Damn Trump. But i do have plenty of bullets.
Grandparents and folks made it past the 1920 and 1930. We should be able to.

I will be piss if we lose that cash that we could have spent. But not the first nor the last. db

 

[Fester]

Fester:

Safe as long as the USA is financially safe. db

Thars actually a scary thought. So what happens if it all collapsed? We lose all assets no money un the bank no paycheck if employed?

 

[lunkerslayer]

Hank Williams jr said it best a country boy will survive

 

[Fester]

Hank Williams jr said it best a country boy will survive

Not so sure about that. He will have a hell of alot of city folk headed his way to deal with...would be an ugly scenario.

 

[Maddog]

Many will now blame greed, capitalism, and lack of regulation, but guess what? More regulation would have done nothing because regulation and policy incentivize buying these “low risk” assets. Furthermore, regulation and monetary policy are directly responsible for the tech bubble. The increasingly elevated valuations of unprofitable tech and the allegedly unstoppable flow of capital to fund innovation and green investments would never have happened without negative real rates and massive liquidity injections. In the case of SVB, its phenomenal growth in 2021 was a direct consequence of the insane monetary policy implemented in 2020, when the major central banks increased their balance sheet to $20 trillion as if nothing would happen.

SVB is a casualty of the narrative that money printing does not cause inflation and can continue forever. They embraced it wholeheartedly, and now they are gone.

SVB invested in the entire bubble of everything: Sovereign bonds, MBS, and tech. Did they do it because they were stupid or reckless? No. They did it because they perceived that there was very little to no risk in those assets. No bank accumulates risk in an asset it believes is high risk. The only way in which banks accumulate risk is if they perceive that there is none. Why do they perceive no risk? Because the government, regulators, central banks, and the experts tell them there is none. Who will be next?

Many will blame everything except the perverse incentives and bubbles created by monetary policy and regulation, and they will demand rate cuts and quantitative easing to solve the problem. It will only worsen. You do not solve the consequences of a bubble with more bubbles.

The demise of Silicon Valley Bank highlights the enormity of the problem of risk accumulation by political design. SVB did not collapse due to reckless management, but because they did exactly what Keynesians and monetary interventionists wanted them to do. Congratulations.

 

[lunkerslayer]

I will take my chances with the city folk

 

[Fester]

Many will now blame greed, capitalism, and lack of regulation, but guess what? More regulation would have done nothing because regulation and policy incentivize buying these “low risk” assets. Furthermore, regulation and monetary policy are directly responsible for the tech bubble. The increasingly elevated valuations of unprofitable tech and the allegedly unstoppable flow of capital to fund innovation and green investments would never have happened without negative real rates and massive liquidity injections. In the case of SVB, its phenomenal growth in 2021 was a direct consequence of the insane monetary policy implemented in 2020, when the major central banks increased their balance sheet to $20 trillion as if nothing would happen.

SVB is a casualty of the narrative that money printing does not cause inflation and can continue forever. They embraced it wholeheartedly, and now they are gone.

SVB invested in the entire bubble of everything: Sovereign bonds, MBS, and tech. Did they do it because they were stupid or reckless? No. They did it because they perceived that there was very little to no risk in those assets. No bank accumulates risk in an asset it believes is high risk. The only way in which banks accumulate risk is if they perceive that there is none. Why do they perceive no risk? Because the government, regulators, central banks, and the experts tell them there is none. Who will be next?

Many will blame everything except the perverse incentives and bubbles created by monetary policy and regulation, and they will demand rate cuts and quantitative easing to solve the problem. It will only worsen. You do not solve the consequences of a bubble with more bubbles.

The demise of Silicon Valley Bank highlights the enormity of the problem of risk accumulation by political design. SVB did not collapse due to reckless management, but because they did exactly what Keynesians and monetary interventionists wanted them to do. Congratulations.

I would blame it more on idiots running the show and believing the shit they spew out there own mouths. I would say more common sense investments would not have caused this colapse....which would require non morons running the show. Great example of where jail time should be served and ALL assets of top leadership should be siezed. There bank accounts should be ZERO and no property/cars etc....I mean all assets gone.

 

[db-2]

Lunker:

Me with the ladies and beer. db

 

[lunkerslayer]

I would blame it more on idiots running the show and believing the shit they spew out there own mouths. I would say more common sense investments would not have caused this colapse....which would require non morons running the show. Great example of where jail time should be served and ALL assets of top leadership should be siezed. There bank accounts should be ZERO and no property/cars etc....I mean all assets gone.

If you read up on this financial institution svb, they hired by diversity instead of qualifications. Then they invested in woke green energy big tech start up businesses that have no financial equity in real world commerce. Then I read that the bank owners pulled out billions and dumped stocks ahead of this shit show they new it was going to sink and none of then will be arrested for stealing becuase its legal.

 

[db-2]

They say one needs a financial investor and i would probably have twice the monies i now have if i had one. A guy offers his service a few years ago but i been my own financial advisor. He promises me many monies. Never felt comfortable with putting our hard earn monies in someone else's hand.

Until about 5 years ago a financial advisor asked me to give him $40,000 at a cost of $800. Today i see it is worth a little over $38,000. His comment, just give it time. Age 76 and i would like to spend some monies and not just give it time.

thanks, bbj to trusting but as i said i do have one bullet on hand. db-2

 

[Fester]

If you read up on this financial institution svb, they hired by diversity instead of qualifications. Then they invested in woke green energy big tech start up businesses that have no financial equity in real world commerce. Then I read that the bank owners pulled out billions and dumped stocks ahead of this shit show they new it was going to sink and none of then will be arrested for stealing becuase its legal.

Exactly what's wrong with our syste.. jail time and no assets. Never allowed to work in banking or the field you screwed over ever again.