Here We Go Again. Wall St. Billionaires Demanding Bailouts Of Big Banks

[beagle9]

Okay.

So we're just re-arranging chairs on the deck of the Titanic.

Trump warned everybody about Biden during the campaign. He's got to feel vindicated and sad for us all at the same time.

 

[Dekster]

Oh yes they will for the same reason that the bank got seized.

No they won't. Even you aren't stupid enough to buy this bank at a loss.

The only way you are going to sell mortgages, bonds, etc with a 2.5-3% yield in today's interest environment is to offer them at a deep discount.

If SVB bought $2 billion worth of bonds and lost $1 billion on them, do you think the buyer is going to pay $2 billion for them? DURR.

SVB lost $2B selling existing assets to raise cash, durrr and that triggered a run on the bank duh. Try to actually learn a fact every now and then

 

[SweetSue92]

The Democrats do not let Biden run again after this.

The next few months are going to be VERY interesting

 

[multivita-man]

The Democrats do not let Biden run again after this.

The next few months are going to be VERY interesting

They don't have any real alternatives at the moment.

 

[multivita-man]

Government's job is to insulate the Americans from these things, so is government inept, corrupted or what ?

Government's job is to stabilize the economy. That's why sometimes growth, as much as it's desired by investors, is not necessarily a great thing, if it's too much, too fast.

The Federal Reserve started a completely new way of doing business after the 2008 crash because it had to thaw credit markets that had been flash frozen during the near collapse of the financial system. We've never really moved back toward normalcy, and in fact, the pandemic made us double down on it.

We're in a generation of massively expanded fed balance sheets, super low interest, and loose money, and in creating this new regime, we've created a "new" economy, and with it, the expectation - the political demand, even - that these conditions will and must continue. The Fed balance sheet used to be currency. Now it's a lot of other things and it's massive.

When the next collapse happens, I fear it will be a systemic collapse that will destroy the entire system. There won't be anything taxpayers can do to stop it once they realize it's about to happen, either. Picking up the pieces would take decades, and that assumes there's political stability to see that effort through to the end.

 

[multivita-man]

Basically, tl/dr, the government is treating these smaller banks (similar to SVB) like bigger, systemically important banks (SIBs). It is not obligated to do so under the law, but it pretty much had to in order to avoid a contagion event.

As I understand it (and I could be wrong), this does not bail out the bank as an institution; it just protects its clients (account holders) until they can figure out what they want to do with their money. If it were JP Morgan or BOA, they would still be planning future business most likely.

Necessary evils aside, this action by the Fed/Treasury/FDIC was the right move because otherwise, account holders at technically less important banks in the US and outside the US would start sucking money out of their accounts.

On the other hand, without regulatory reforms going forward, we're going to create a much bigger disaster in the future. We need Frank-Dodd to apply to a wider net of banks and financial institutions, and we need more stringent stress tests. I am not confident that current stress tests really prove that banks could survive sudden withdrawals like the ones we saw this past week.

 

[Cellblock2429]

The fact that Silicon Valley Bank (SVB) has been seized by federal regulators is a big deal and will have a huge impact on Silicon Valley’s startup scene. They are the financial institution for every new tech company in Northern California.

Something is really rotten at SVB. The bank has $209 billion in assets and $175.4 billion in deposits, yet it collapsed because it failed to raise a mere $1.75 billion in new financing. The consequences should ripple across a significant segment of the economy, particularly in the San Francisco-San Jose region.

But whatever, shit happens, right? Economic sectors are disrupted all the time, and this one, at least, should hit a more affluent crowd. We’re not talking the destruction of manufacturing in small towns all across America, and Silicon Valley is resilient enough to bounce back. It always does.

Except this isn’t small-town America. This is some of the wealthiest, most powerful interests in our country. And if there’s one thing wealthy financial interests love more than anything else, it’s privatizing profits but socializing the risks. So like clockwork …

Here we go again: Wall Street billionaires demanding public bailouts of failed banks

UPDATE: Friday, Mar 10, 2023 · 8:19:42 PM +00:00 · kos Just watch, all the usual suspects will make the same f’n arguments: They can f’ themselves. I am so livid, I am still throwing shit around my house. Sorry if you come into my house and see the...

www.dailykos.com

No. Hell no. Fuck no. Eat shit and fucking die no.

/——-/ All part of Dementia Joe’s booming economy. Let’s go Brandon.

 

[skews13]

/——-/ All part of Dementia Joe’s booming economy. Let’s go Brandon.

All part of the Trump roll back of protections under the Dodd- Frank law stress testing banks.

But the good news is

 

[Toddsterpatriot]

Take some classes in finance, and you might be able to actually discuss issues instead of just posting idiot one liner questions you would never understand the answers to anyway, since you don't know squat.

I don't know of any colleges in my area that offer classes in gibberish.

How does someone "leverage those tranches in CDO's at 35 to 50 times the averages values in the overnight markets"?

That's some funny shit right there.

 

[Toddsterpatriot]

SVB lost $2B selling existing assets to raise cash, durrr and that triggered a run on the bank duh. Try to actually learn a fact every now and then

SVB lost $2B selling existing assets

And you think a buyer is going to lose that $2 billion....again? DURR

 

[Cellblock2429]

All part of the Trump roll back of protections under the Dodd- Frank law stress testing banks.

But the good news is

View attachment 765305

/---/Dementia Joe and the democRATs had two years to re-regulate Dodd-Frank, but they were consumed with pushing the Jan 6 Insurrection Farce.

 

[multivita-man]

/---/Dementia Joe and the democRATs had two years to re-regulate Dodd-Frank,

Which you would have objected to, so stifle yourself, Edith.

The real problem is we have two fake democrats, Sen. Sinema and Joe Munchkin. DINOs. And we have a few others like Schumer, Feinstein, and Coons who basically are corporate lapdogs.

 

[Cellblock2429]

Which you would have objected to, so stifle yourself, Edith.

The real problem is we have two fake democrats, Sen. Sinema and Joe Munchkin. DINOs. And we have a few others like Schumer, Feinstein, and Coons who basically are corporate lapdogs.

/------/ "Which you would have objected to, so stifle yourself, Edith."
Perhaps I would have, but as you well know, I would be powerless to stop it. Looks like democRATs had no issue with re-regulating DF, I doubt it was ever on their agenda. It was all the JAN 6 Scam. BTW, Edith was a nice person and wasn't stupid, but you're the perfect Meathead.

 

[DudleySmith]

I don't know of any colleges in my area that offer classes in gibberish.

How does someone "leverage those tranches in CDO's at 35 to 50 times the averages values in the overnight markets"?

That's some funny shit right there.

lol keep proving you don't know anything, you just like posting dumbass one liners all day.

 

[DudleySmith]

Which you would have objected to, so stifle yourself, Edith.

The real problem is we have two fake democrats, Sen. Sinema and Joe Munchkin. DINOs. And we have a few others like Schumer, Feinstein, and Coons who basically are corporate lapdogs.

All Democrats are corporate lap dogs. They all take bribes.

 

[skews13]

Which you would have objected to, so stifle yourself, Edith.

The real problem is we have two fake democrats, Sen. Sinema and Joe Munchkin. DINOs. And we have a few others like Schumer, Feinstein, and Coons who basically are corporate lapdogs.

You are dealing with people that believe Donald Trump is normal, and horse dewormer is medicine for a respiratory virus, who watch a television version of Tokyo Rose for the truth.

A for effort, but...

 

[Toddsterpatriot]

lol keep proving you don't know anything, you just like posting dumbass one liners all day.

Keep running away like a little pussy.

 

[Toddsterpatriot]

and horse dewormer is medicine

How many horses take it? How many people take it?

 

[Ringo]

And what if Russia's stolen assets abroad turned out to be time bombs, and now Putin has activated them and the Western banks have begun to collapse?!

 

[DudleySmith]

Keep running away like a little pussy.

Keep hoping you don't look stupid, and not even able to follow a discussion but having to jump in with your usual dimwitted one liners. Keep avoiding admitting you don't have any idea what was being discussed.