Considering the Average American Savings account has less than $20k in it, and the Median Savings account has under $5k, your point isn't quite as effective as you think.
Let's not get all Reagan and faint because No One Cares About The Job Creators
Again, you're not getting it.
Banks work by depositing money from rich people, and then lending it to poor people at interest. If there's no rich people money in the ####ing bank, there's not money available to loan to poor people who aren't the surest ####ing bet at returning on investment. Nobody who isn't worth the risk is getting money.
We are all connected, rich and poor alike. This is just one example.
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Banks work by depositing money from rich people, and then lending it to poor people at interest. If there's no rich people money in the ####ing bank, there's not money available to loan to poor people who aren't the surest ####ing bet at returning on investment. Nobody who isn't worth the risk is getting money.
We are all connected, rich and poor alike. This is just one example.
So you're buying into the hyperbolic RW ragebait that Biden tanked the economy because ???reasons???
This isn't the First Domino. It's a ####ty exposed bank reaping what they sowed.
Dude, Psycnet, you're creating a narrative that isn't there.
EVERY single bank has exposure to buying treasury bonds. This was just an institution that was more vulnerable than most to exposure, and the hedge fund guys called them on it to try and lower interest rates.
This is insider ####, and it sucks because it hurts everyone else. I'm not going to bat for the right or against Biden. Get a grip.
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How on earth did you get to that place from what he posted?
Because we're posting in a thread from one of your brain worm added contemporaries claiming that the entire kit and kaboodle is about to come crashing down around us because there was a minor shakeup that the govt stepped in to save the poor VCs from over the weekend.
TradFi being spooked (while crypto got a nice bounce oddly) doesn't spell the demise of the entire US banking system and pretending this is anything more than expected (seriously read any articles over the last 6 months about SVB) is denying reality.
Some rumours that the tech tycoons (Thiel cough cough ) did a run on the banks to force the fed to consider stopping rate hikes
It’s really just a liquidity issue and timing of assets valuation/maturity issue
The bonds don’t loose money unless the bank is forced to sell - so it’s very different from the mortgage financial crises where the asset truely devalued
The issue is having to borrow money at 6% to cover withdrawals when your bonds are paying 1.5%.
And if you didn’t want the thread to be a joke , try having a proper thread title and a first post with some substance
It probably wont be the start of a cascading failure in the economy ala 2008 but it could be, somehow we have got ourselves into a place were we insure banks for any stupid crap they pull while at the same time not regulating them, it's like we have given our drunken crack head brother in law the credit card and the pin number with the 20,000 limit because we need a litre of 2%
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I am normally an optimistic person when it comes to these particular things and have a decent banking background, but a lot of things with the banking sector and the markets as a whole these days, don't make much sense.
I don't have a ton of faith in the powers at be, like government officials and the regulators/ central banks.
What I do worry about is a lack of tools in the tool box to deal with our next financial crisis, whenever that may be. That one, could be the next big one and could involve 1930's era level of desperation and despair.
Bottom line for those who don't understand what may be potentially starting here and has in some ways happened with SVB is this. Clients and businesses may not be able to access their money and their credit facilities.
What happens if you or a company can't access their money? What if you can't pay for goods, services and payroll? It doesn't take too long before this domino effect can ripple across the economy potentially.
A good rule of thumb is to actually have some cash on you to pay for basic items during an emergency. I know we have mostly gotten away from cash but trust me, when s*** hit's the fan, and it always does, cash is required.
If anything, we've seen the first casualty of the inflation problem only having one solution, and that is to jack interest rates very quickly.
All of a sudden 'oh the Fed is looking at reversing course on the rate increases.'
Will be interesting to see what the inflation numbers will be.
We're moving from a supply chain issue into a shortage of workers = shortage of goods issue. Especially in Canada. And the corporate world loves it like that because they can keep prices elevated.
If anything, we've seen the first casualty of the inflation problem only having one solution, and that is to jack interest rates very quickly.
All of a sudden 'oh the Fed is looking at reversing course on the rate increases.'
Will be interesting to see what the inflation numbers will be.
We're moving from a supply chain issue into a shortage of workers = shortage of goods issue. Especially in Canada. And the corporate world loves it like that because they can keep prices elevated.
Ya, "fragilized". Keep your stupid regulations away from crypto! Sorry, choking on salt here, Psycnet.
There's a lot of overlap between cryptobros and the chicken littles who think the whole thing is going to come crashing down, but I was too lazy to repost the screencap so I included the reactionary comment tweet as well.
There's a lot of overlap between cryptobros and the chicken littles who think the whole thing is going to come crashing down, but I was too lazy to repost the screencap so I included the reactionary comment tweet as well.
That's a shocker.... You mean people with a massive vested interest in an alternative currency system are over exaggerating issues with the current currency system?
This one niche bank got screwed by a group of large investors.... Guess I'd better throw everything I own into a currency system where the best case scenario is multiple massive fluctuations in value per year... And no cryptocurrency has ever gone under before.
Is it too late to pay tens of thousands for pictures of cartoon apes?
If you are going to post a thread, shouldn't you start the discussion? Do you think others are wanting to discuss this topic, but were waiting for you to start the official thread?
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