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OT- Did it just get serious that fast? FED, FDIC, Treasury, and all of Congress just met

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Ibdancin

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I'm not interested in the blame game. But when a meeting takes place on a Sunday night and it's with ALL of congress about run on banks after 3 just collapsed, it makes you kinda want to talk to like minded people about it.

So avoid the blame game or the thread, BUT this just happened:
















There are even lines at friggin Kohls to redeem billions in Kohl dollars. You would think that is a joke... but it's not.


Not sure what we are looking at here, but what are you all hearing around home?
 
57stratdawg

57stratdawg

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It would be pretty surprising. There’s nothing wrong with the assets these banks are holding. This is close to meme-stock territory.

FYI - Dow Futures are way up after tonight’s reporting.
 
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Shmuley

Shmuley

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57stratdawg said:
It would be pretty surprising. There’s nothing wrong with the assets these banks are holding. This is close to meme-stock territory.

FYI - Dow Futures are way up after tonight’s reporting.
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I think we’re in for major turbulence in the market next week. Better strap it on tight, MFers. There are going to be several banks that go into the s h i t t e r.
 
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Ibdancin

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57stratdawg said:
It would be pretty surprising. There’s nothing wrong with the assets these banks are holding. This is close to meme-stock territory.

FYI - Dow Futures are way up after tonight’s reporting.
Click to expand...
Then I would by Puts!

we are in a money contraction right now and it's the first time the USA has done so in 100ish years. Might want to look into that to verify.
 
karlchilders.sixpack

karlchilders.sixpack

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SyonaraStanz said:
Meh. They’re simply trying to instill confidence in an extremely overreactive public after a couple closures. We’ll continue to see the number of banks decrease, as the weak and poorly managed are weeded out. The more stable banks have great opportunities for growth.
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I thought all of these banks recently passed a stress test.
 
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T-TownDawgg

T-TownDawgg

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57stratdawg said:
It would be pretty surprising. There’s nothing wrong with the assets these banks are holding. This is close to meme-stock territory.

FYI - Dow Futures are way up after tonight’s reporting.
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Of course futures are up. Those insidious shitstainbastards in congress and the blood sucking hedge high-rollers want to hold the status-quo to cash out before they burn down the casino. Typical.
 
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jethreauxdawg

jethreauxdawg

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Ibdancin said:
Why yes. How could we do it any other way.

we are in a money contraction with the Feds. We are in the negative by 2%. Look that history up.
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It’s a brilliant plan. Clearly works great. FDIC Insures deposits to make up for careless management and then the govt (with a loan from the Fed) just gives out more money to cover the uninsured deposits. If you’re in charge of a large bank and aren’t being absurdly risky, you’re a fool. The key is too be big enough or have enough investors with political pull (probably one and the same).
 
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Podgy

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Nothing to be concerned about. Our financial elites would never do anything to harm this country. Never, ever, ever and our govt would never let them get away with it either. They are all selflessly devoted to appropriate risk management and would never gamble with anyone's deposits. Nothing like having a financial system that allows financial elites to gamble with deposits and keep their winnings when their risky bets pay off and also get bailouts using taxpayer money when their risky bets screw up and ruin institutions. Such an awesome system. It's nice to have a system that's incredibly complicated and boring that taxpayers don't know how much they get screwed over. It's a lot easier to get angry with someone we see buying stuff using an EBT card.
 
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karlchilders.sixpack

karlchilders.sixpack

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Podgy said:
Nothing to be concerned about. Our financial elites would never do anything to harm this country. Never, ever, ever and our govt would never let them get away with it either. They are all selflessly devoted to appropriate risk management and would never gamble with anyone's deposits. Nothing like having a financial system that allows financial elites to gamble with deposits and keep their winnings when their risky bets pay off and also get bailouts using taxpayer money when their risky bets screw up and ruin institutions. Such an awesome system. It's nice to have a system that's incredibly complicated and boring that taxpayers don't know how much they get screwed over. It's a lot easier to get angry with someone we see buying stuff using an EBT card.
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What's worse, these larger banks have Fed Regulators that are housed in their main offices, and see much of what is going on, in real time.
 
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Ibdancin

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1msucub said:
Can you explain what that means, dancin?
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Yes. The Federal Reserve has been sucking money out of the economy. The money supply in the economy is contracting. We crossed over into the negative and we have been for 3 months straight and is at a 35 year low.

When the money supply contracts while inflation rises, it creates a “nasty combination”. The Feds want to raise the rates again. yet if they do, the money supply will contract even more. Because there are fewer dollars available to pay for higher prices, eventually leading to a deflationary crash.
You add to this that during Covid, the Federal Reserve removed safe guards. Make sense? We are stuck.


Historically here is whqt it looks like:


 
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Podgy

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Good. The superwealthy won't lose their uninsured deposits. They're likely Dem donors, it's Silicon Valley, so this is another reason you shouldn't be poor and instead be super wealthy. The govt will protect you. I'm sure all of the people in East Palestine, Ohio are pleased with the government's rapid response to the mega wealthy potentially being less mega wealthy. "Officials took the extraordinary step of designating SVB and Signature Bank as a systemic risk to the financial system, which gives regulators flexibility to guarantee unnsured deposits. Officials said that depositors at SVB will have access to all of their money on Monday.” https://www.wsj.com/articles/federa...sis-ba4d7f98?mod=hp_trending_now_article_pos3
 
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1msucub

1msucub

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Ibdancin said:
Yes. The Federal Reserve has been sucking money out of the economy. The money supply in the economy is contracting. We crossed over into the negative and we have been for 3 months straight and is at a 35 year low.

When the money supply contracts while inflation rises, it creates a “nasty combination”. The Feds want to raise the rates again. yet if they do, the money supply will contract even more. Because there are fewer dollars available to pay for higher prices, eventually leading to a deflationary crash.
You add to this that during Covid, the Federal Reserve removed safe guards. Make sense? We are stuck.


Historically here is whqt it looks like:


Click to expand...
Holy crap. What is that 26% reflective of? Government giveaway money?

I’m in the middle of building a new facility for my business, so I’m super pumped about the possibility of a freaking depression. Yay.
 
jethreauxdawg

jethreauxdawg

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1msucub said:
Holy crap. What is that 26% reflective of? Government giveaway money?

I’m in the middle of building a new facility for my business, so I’m super pumped about the possibility of a freaking depression. Yay.
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I’ve been burying cash in mayonnaise jars, if you need to sell that building, let me know.
 
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Ibdancin

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1msucub said:
Holy crap. What is that 26% reflective of? Government giveaway money?

I’m in the middle of building a new facility for my business, so I’m super pumped about the possibility of a freaking depression. Yay.
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LOL... Not me.

I'm not sure the asnwer, but they can not raise rates. If they lower, (inflation still rising) it will cause inflation to rise even more. I see no out but going through the pain.
 
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Podgy

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Ibdancin said:
LOL... Not me.

I'm not sure the asnwer, but they can not raise rates. If they lower, (inflation still rising) it will cause inflation to rise even more. I see no out but going through the pain.
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It would be nice if the pain involved depositors losing money uninsured by FDIC. But, that's not likely to happen. There's a lot of risk in financial capitalism, but that doesn't mean a risk of losing money for financial elites. I just hope we don't give those greedy, ungrateful students in debt a dime of student loan relief. Unlike this bailout, like the one in 2008,, that would be wrong.
 
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1msucub

1msucub

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Ibdancin said:
LOL... Not me.

I'm not sure the asnwer, but they can not raise rates. If they lower, (inflation still rising) it will cause inflation to rise even more. I see no out but going through the pain.
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How did it hit 26%?
 
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ronpolk

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Podgy said:
Good. The superwealthy won't lose their uninsured deposits. They're likely Dem donors, it's Silicon Valley, so this is another reason you shouldn't be poor and instead be super wealthy. The govt will protect you. I'm sure all of the people in East Palestine, Ohio are pleased with the government's rapid response to the mega wealthy potentially being less mega wealthy. "Officials took the extraordinary step of designating SVB and Signature Bank as a systemic risk to the financial system, which gives regulators flexibility to guarantee unnsured deposits. Officials said that depositors at SVB will have access to all of their money on Monday.” https://www.wsj.com/articles/federa...sis-ba4d7f98?mod=hp_trending_now_article_pos3
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Do you really want the FDIC to just let a bank fail and every deposit over $250k be wiped out? That would ruin a lot more than super wealthy people. Tons of businesses have deposits that exceed insurance, normal mom and pop business. You’d be talking about no telling how many payroll accounts that would be gone and how many businesses would go bankrupt. The feds can’t let deposits not be paid. The US banking system would fail immediately if the feds did that.

So far, the banks that have been closed aren’t closing for terrible loans, like we saw in 2008.
 
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Podgy

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ronpolk said:
Do you really want the FDIC to just let a bank fail and every deposit over $250k be wiped out? That would ruin a lot more than super wealthy people. Tons of businesses have deposits that exceed insurance, normal mom and pop business. You’d be talking about no telling how many payroll accounts that would be gone and how many businesses would go bankrupt. The feds can’t let deposits not be paid. The US banking system would fail immediately if the feds did that.

So far, the banks that have been closed aren’t closing for terrible loans, like we saw in 2008.
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We've heard that before, and it's a reason for yet another bailout. Should we believe that? Are we going to believe that when it happens again in a few years too? These are two banks. Do you really believe this is another Lehmann-like failure that's potentially devastating to our financial system? Open accounts at other banks. Cover deposits with DIF. There are ways to insure money. Capitalism involves risk. It's time to make sure big business and big finance face some of it. I really don't know if there's a systemic threat. I see yet another bailout of the financial sector, a regular action in our free market, capitalistic society. This also points to systemic, regulatory failure of our financial institutions. I'm no socialist but spare me the limited govt, free market talking points regarding our financial system. Big banks and financial institutions don't play by those rules and the govt protects them when they screw up. Of course, it's to protect the little guy, the mom and pop businesses. Mom and pop should be pissed.
 
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ronpolk

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Podgy said:
We've heard that before, and it's a reason for yet another bailout. Should we believe that? Are we going to believe that when it happens again in a few years too? These are two banks. Do you really believe this is another Lehmann-like failure that's potentially devastating to our financial system? Open accounts at other banks. Cover deposits with DIF. There are ways to insure money. Capitalism involves risk. It's time to make sure big business and big finance face some of it. I really don't know if there's a systemic threat. I see yet another bailout of the financial sector, a regular action in our free market, capitalistic society. This also points to systemic, regulatory failure of our financial institutions. I'm no socialist but spare me the limited govt, free market talking points regarding our financial system. Big banks and financial institutions don't play by those rules and the govt protects them when they screw up. Of course, it's to protect the little guy, the mom and pop businesses. Mom and pop should be pissed.
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Thankfully I believe you are very much in the minority with this belief. I really can’t understand what you think will be solved by allowing people and companies to lose their deposits. I don’t think you realize just how many average joes have deposits in excess of the deposit limits. Lastly, the feds are shifting losses on deposits off to taxpayers. Trust me, other banks are begging for deposits right now. The deposit accounts will be sold to another bank
 
Perd Hapley

Perd Hapley

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The biggest issue seems to be that banks everywhere seem to be reporting bond values on their balance sheets that are far in excess of what they could actually sell them for today.

During the zero interest days of COVID, banks loaded up on bonds that are now worth far less since the feds started skyrocketing interest rates. They will eventually have to unload them all at a much bigger loss than they are currently showing. Some more smaller banks will go under. The Goldman’s and the JPM Chase’s of the world will probably be fine.
 
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