How’s the stock market?

[casa_mugrienta]

"Tech executives, former government officials and at least two Democratic lawmakers called for safeguarding depositors with money at stake in the collapse if a buyer for the bank’s assets isn’t found by Monday, arguing that it’s the only way to limit a cascade of bigger problems."

Bailout talk roils Washington after Silicon Valley Bank’s collapse

 

[PRCD]

"Tech executives, former government officials and at least two Democratic lawmakers called for safeguarding depositors with money at stake in the collapse if a buyer for the bank’s assets isn’t found by Monday, arguing that it’s the only way to limit a cascade of bigger problems."

Bailout talk roils Washington after Silicon Valley Bank’s collapse

So only schmucks like me are expected to manage money anymore.

 

[Driftcoast]

"Tech executives, former government officials and at least two Democratic lawmakers called for safeguarding depositors with money at stake in the collapse if a buyer for the bank’s assets isn’t found by Monday, arguing that it’s the only way to limit a cascade of bigger problems."

Bailout talk roils Washington after Silicon Valley Bank’s collapse

F that kind of "Socialism"

 

[Aruka]

What would you have done about inflation?

Well, since much of it has been caused by price gouging and supply chain issues and therefore cannot be solved only by increasing interest rates I would probably try not to raise rates so fast that I crashed the economy.

But Im not an expert like casa.

 

[PRCD]

Well, since much of it has been caused by price gouging and supply chain issues

How much?

and therefore cannot be solved only by increasing interest rates I would probably try not to raise rates so fast that I crashed the economy.

How quickly and how much? What are the Fed's other options?

 

[casa_mugrienta]

Well, since much of it has been caused by price gouging and supply chain issues and therefore cannot be solved only by increasing interest rates I would probably try not to raise rates so fast that I crashed the economy.

But Im not an expert like casa.

I'm by no means an expert, but I did pay attention in school.

But it's pretty clear from the first sentence you're a long way from understanding inflation and further, how interest rates work.

Also, thank you for proving my point from my earlier post:

It is so much easier, from a political perspective, to let inflation run because high prices can always be blamed on something else.

 

[casa_mugrienta]

@Driftcoast, this pertains to the link I posted regarding your $30k and Dodd-Rank.

"By allowing @SVB_Financial to fail without protecting all depositors, the world has woken up to what an uninsured deposit is — an unsecured illiquid claim on a failed bank."

https://twitter.com/i/web/status/1634662286844411904

https://twitter.com/i/web/status/1634564398919368704

 

[sdsrfr]

let’s see those short positions! Lol.

imo this whole svb thing is similar to other banking info leaks as it shows the M.O. of startups and how naive a cfo can be.

 

[casa_mugrienta]

imo this whole svb thing is similar to other banking info leaks as it shows the M.O. of startups and how naive a cfo can be.

No leaks necessary






In other news, Newsome intervenes!

"California Gov. Gavin Newsom said Saturday that he’s talking with the White House to help “stabilize the situation as quickly as possible, to protect jobs, people’s livelihoods, and the entire innovation ecosystem that has served as a tent pole for our economy.”

From wine country to London, bank's failure shakes worldwide

NEW YORK (AP) — It was called Silicon Valley Bank, but its collapse is causing shockwaves around the world.

apnews.com

I'm noticing more articles mentioning deposits are only "safe" up to $250k, and I am sure the vast majority of the public is unaware of this. If they start to realize they're only insured up to $250k per bank things could get interesting.

EDIT:

Yellen says no bailouts, "We good!"

US government moves to stop potential banking crisis

NEW YORK (AP) — The U.S. government took extraordinary steps Sunday to stop a potential banking crisis after the historic failure of Silicon Valley Bank, assuring all depositors at the failed institution that they could access all their money quickly, even as another major bank was shut down.

apnews.com

 

[sdsrfr]

EDIT:
Yellen says no bailouts, "We good!"

US government moves to stop potential banking crisis

NEW YORK (AP) — The U.S. government took extraordinary steps Sunday to stop a potential banking crisis after the historic failure of Silicon Valley Bank, assuring all depositors at the failed institution that they could access all their money quickly, even as another major bank was shut down.

apnews.com

Back room buddies have agreed, let the non-GSIBs bleed.

2022 List of Global Systemically Important Banks (G-SIBs)

Thirty banks identified as G-SIBs through the annual identification process.

www.fsb.org

 

[r32]

Longest tweet all time?

https://twitter.com/i/web/status/1634564398919368704

 

[Sharky]

Now Elon Musk says he's 'open to the idea' of buying crisis-hit Silicon Valley Bank | Daily Mail Online

 

[Driftcoast]

@Driftcoast, this pertains to the link I posted regarding your $30k and Dodd-Rank.

Yay for this kind of "Socialism':

https://twitter.com/i/web/status/1634564398919368704

F Bill and his billion dollar cries for "socialism of loss"

PS
my money lives in a credit union in Santa Rosa

 

[hammies]

Roku has got to be shitting bricks right now. Wondering if they're ever gonna get their money and make payroll.

 

[casa_mugrienta]

Roku has got to be shitting bricks right now. Wondering if they're ever gonna get their money and make payroll.

I’m just wondering if my Roku box is going to stop working.

 

[vanrysss]

It's not really "bailing out depositors". FDIC is going to sell SVB's assets to cover depositors, but might be a while until everyone is made whole which could obviously fuck over people and businesses that bank with them.
Read somewhere that one of the major wall Street banks will probably buy the whole bond portfolio for 100 cents on the dollar just to avoid the headache of this whole thing turning sour. It's not like SVB was buying up dog sh!t mortgages.
Shareholders are fucked, that's what bankruptcy does, lenders to SVB probably fucked too.

 

[casa_mugrienta]

FDIC auction underway now for Svb assets.

Could be some cool sh!t at barg prices.

BTW, my invitation still stands for anyone who still wants to make a bet the “hawkish” Fed won’t pivot and cut. Any takers? Lol.

 

[casa_mugrienta]

Read somewhere that one of the major wall Street banks will probably buy the whole bond portfolio for 100 cents on the dollar just to avoid the headache of this whole thing turning sour.

Turning sour?

I think you are rather underestimating what is about to go down.

There's a pretty good chance some large depositors are going to start pulling their $$$ out of certain banks in a big way, starting tomorrow AM. It's hard to believe people don't know about the 250K rule, but most do not. Now every news article has it in the first three paragraphs. They're going to begin parking their money elsewhere - other banks, T-bills, etc.

There's also a good chance the tide is going to start pulling out and a lot of banks are going to be naked. In other words, unable to provide owed funds to depositors in the coming days/weeks. Just like SVB. So what then? They'll start selling stuff like mortgage debts (low yielding at that - those amazing and mortgage/refi rates everyone jumped on are awful for lenders of course) at a loss. Not good.

But as @grapedrink said - depositors have no need to fear - the FDIC is here!

Where does the FDIC get it's money? From the government.

But the government is broke. So where would the government get the money?

The Fed.

Oh, but the Fed is doing QT.

Oops.

In other words, the Fed is going to have to pivot, cut rates, and resume QE in order to bail out the FDIC/depositors and let inflation run...likely precipitating a crash of the dollar.

OR

The Fed keeps fighting inflation, the bond market crashes and takes out more banks, and depositors take it up the ass.

 

[r32]

Roku has got to be shitting bricks right now. Wondering if they're ever gonna get their money and make payroll.

It was 26% of their cash, so they can probably make payroll a few more times.

 

[casa_mugrienta]

Maybe offer up a coherent rebuttle?

Seems odd the you're laughing while twice you've shown you had no idea what the current rate of inflation was, nor the fed funds rate and were operating under the assumption that everything between the two was fine 'n dandy.