Quote:
Originally Posted by Firebot
https://twitter.com/user/status/1635268439488233477
Pretty clear cut and obvious?
Feds effectively nearly broke the banking system with their incessant quick raising of rates to combat inflation (that inflation they once deemed transitory and kept historically low interest rates for 2 years). They tried to brute force a recession without taking in consideration the fallout at banks in a rapidly increasing rate environment and subsequent loss of confidence, as a result they have to do damage control. Only government intervention and bailout saved the banking industry from potential total collapse and mass contagion. This intervention of course has its own side effects, it will make for an interesting year.
Western Alliance down 50% after being initially down 80%
First Republic Bank down 63% today alone
Charles Schwab stock down 10% after initially being down 20%
What would the numbers have looked like had the government not stepped in to secure deposits?
In other news HSBC bought SVB's British branch for 1 pound  , but deposits are safe.
https://www.cnn.com/2023/03/13/inves...hnk/index.html
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Yeah, I saw that (really last night there were suggestions that this was going to happen, after I posted that). I'm quite curious to see this week though. CPI comes out tomorrow and while I don't believe in conspiracy theories, I do wonder how good that will look for the fed because they need a positive outcome.