Joe Ferguson forever Posted March 14, 2023 Posted March 14, 2023 15 hours ago, ChiGoose said: We’re generally good at the first part and bad at the second part. So we get (as you aptly described) privatized profits and socialized losses. sounds eerily similar to the American healthcare industry.
All_Pro_Bills Posted March 14, 2023 Posted March 14, 2023 21 minutes ago, redtail hawk said: https://www.wsj.com/articles/inflation-report-arrives-as-fed-confronts-bank-failures-5f0e10ae this is the quandary. Consumer spending is still too high to slow inflation enough. Make credit more expensive and it goes down. Seems like holding rate increases for a few months and stopping deferred payment from consumers to credit companies in that time while card rates increase might be a good strategy. on the bright side, stock futures are up again this am. How about slowing Federal government spending? They borrow a lot of money too. 3
Joe Ferguson forever Posted March 14, 2023 Posted March 14, 2023 4 minutes ago, All_Pro_Bills said: How about slowing Federal government spending? They borrow a lot of money too. Yes, what percentage is discretionary tho? Cutting safety net programs in a time of high inflation might result in civil unrest. Can't remember the economist that proposed it but some believe it's cheaper for the gov't to give away money than to pay for the consequences of unrest on the economy. I don't know but it wouldn't be pleasant - it's happened before. French revolution comes to mind. Cutting spending is however a needed part tho, imo.
Tommy Callahan Posted March 14, 2023 Posted March 14, 2023 17 hours ago, ChiGoose said: We don’t know yet. This is the start of a classic bank run panic. Depositors are concerned that their money won’t be available anymore so they are trying to withdraw it. It’s basically that famous scene from It’s A Wonderful Life. Even smaller banks who don’t have underlying issues would be at risk if their customers wrongly believe there’s an issue and begin to withdraw all of their funds. The FDIC and Treasury stepping in to guarantee all depositors at SVB and Signature Bank is meant to send a message to consumers that their money is safe no matter which bank it’s in. The question is whether or not the public will believe this. The FDIC can cover the deposits for these banks with its own funds. If people stop withdrawing funds from their banks, we’ll probably be ok after a short but bumpy ride. If people continue to withdraw their funds, it’ll put additional banks at risk to the point that we would need Congress to step in to provide a bigger backstop and fight the panic. There’s a broader conversation to have about ways to prevent this and potential punishment for the risk managers at SVB, but ensuring depositor confidence is the #1 thing you have to do if you want to have a chance at preventing a broader collapse. Thankfully, the government is not backstopping investors or management for these banks. Just depositors. if its that simple, if nothing is changed. rates will rise and the pressure on the banks will continue and then.... that's sociology what about that firm interest rate narrative that caused the bank to fail, that you stated was the only reason it failed?
All_Pro_Bills Posted March 14, 2023 Posted March 14, 2023 14 minutes ago, redtail hawk said: Yes, what percentage is discretionary tho? Cutting safety net programs in a time of high inflation might result in civil unrest. Can't remember the economist that proposed it but some believe it's cheaper for the gov't to give away money than to pay for the consequences of unrest on the economy. I don't know but it wouldn't be pleasant - it's happened before. French revolution comes to mind. Cutting spending is however a needed part tho, imo. I'd simply argue the trajectory of the financial system, including government spending and consumer spending for that matter, is unsustainable and either you make conscious decisions to rein in spending and debt or you'll be forced by circumstances to do it later under less pleasant conditions. 1 2
Tommy Callahan Posted March 14, 2023 Posted March 14, 2023 30 minutes ago, redtail hawk said: Yes, what percentage is discretionary tho? Cutting safety net programs in a time of high inflation might result in civil unrest. Can't remember the economist that proposed it but some believe it's cheaper for the gov't to give away money than to pay for the consequences of unrest on the economy. I don't know but it wouldn't be pleasant - it's happened before. French revolution comes to mind. Cutting spending is however a needed part tho, imo. Welp. We saw in the summer of rage. government gave out money, people still burned the country. but inflation wasnt a thing then. like going full circle
BillStime Posted March 14, 2023 Posted March 14, 2023 10 hours ago, Big Blitz said: Man made Covid hysteria led to it - government (which totally cares about you) caused that. This took about 1 year after masks came off. Can’t wait to see what’s next. But only white people are successful - white men that is - right? I mean - your cult leader bankrupted how many of his businesses? F’n idiots
SoCal Deek Posted March 14, 2023 Posted March 14, 2023 21 minutes ago, nedboy7 said: I hope wokeness doesn’t make it snow today. Nah…but we are expecting more rain out here on the west coast. Thanks for asking. 1
B-Man Posted March 14, 2023 Posted March 14, 2023 ANDY KESSLER: Who Killed Silicon Valley Bank? Was there regulatory failure? Perhaps. SVB was regulated like a bank but looked more like a money-market fund. Management screwed up interest rates, underestimated customer withdrawals, hired the wrong people, and failed to sell equity. You’re really only allowed one mistake; more proved fatal. Was management hubristic, delusional or incompetent? Sometimes there’s no difference. https://www.wsj.com/articles/who-killed-silicon-valley-bank-interest-rates-treasury-federal-reserve-ipo-loan-long-term-bond-capital-securities-startup-jpmorgan-bear-stearns-lehman-brothers-b9ca2347 Get woke, go broke. 1
Joe Ferguson forever Posted March 14, 2023 Posted March 14, 2023 1 hour ago, nedboy7 said: I hope wokeness doesn’t make it snow today. It's snowing right now in Virginia. I blame Youngkin (altho I like him better than Desantis). It's swampy, muggy and inhospitable in Fla today. 20 minutes ago, B-Man said: ANDY KESSLER: Who Killed Silicon Valley Bank? Was there regulatory failure? Perhaps. SVB was regulated like a bank but looked more like a money-market fund. Management screwed up interest rates, underestimated customer withdrawals, hired the wrong people, and failed to sell equity. You’re really only allowed one mistake; more proved fatal. Was management hubristic, delusional or incompetent? Sometimes there’s no difference. https://www.wsj.com/articles/who-killed-silicon-valley-bank-interest-rates-treasury-federal-reserve-ipo-loan-long-term-bond-capital-securities-startup-jpmorgan-bear-stearns-lehman-brothers-b9ca2347 Get woke, go broke. That's not what the piece says.
B-Man Posted March 14, 2023 Posted March 14, 2023 6 minutes ago, redtail hawk said: That's not what the piece says. Yes it does. You forgot to remove your blinders first. 1 1
nedboy7 Posted March 14, 2023 Posted March 14, 2023 1 hour ago, SoCal Deek said: Nah…but we are expecting more rain out here on the west coast. Thanks for asking. That is good for the drought Biden created. Like a MAGA rain!!! 1
Joe Ferguson forever Posted March 14, 2023 Posted March 14, 2023 4 minutes ago, B-Man said: Yes it does. You forgot to remove your blinders first. please cut and paste a piece of the WSJ article that expresses your sentiment Get Woke, Go Broke. It's catchy tho, on the level of Desanctimonious 1
aristocrat Posted March 14, 2023 Posted March 14, 2023 11 minutes ago, redtail hawk said: please cut and paste a piece of the WSJ article that expresses your sentiment Get Woke, Go Broke. It's catchy tho, on the level of Desanctimonious Did you see any nazi recruiting posters at SVB? Maybe they're responsible? 1
Joe Ferguson forever Posted March 14, 2023 Posted March 14, 2023 8 minutes ago, aristocrat said: Did you see any nazi recruiting posters at SVB? Maybe they're responsible? No, but I saw this: https://www.msn.com/en-us/news/us/swastikas-image-of-hitler-drawn-on-jewish-students-door-at-stanford/ar-AA18AhoB
aristocrat Posted March 14, 2023 Posted March 14, 2023 1 minute ago, redtail hawk said: No, but I saw this: https://www.msn.com/en-us/news/us/swastikas-image-of-hitler-drawn-on-jewish-students-door-at-stanford/ar-AA18AhoB strange that your nazi recruiting posters never made thenews. perhaps because you created it in your mind for some reason
Joe Ferguson forever Posted March 14, 2023 Posted March 14, 2023 3 minutes ago, aristocrat said: strange that your nazi recruiting posters never made thenews. perhaps because you created it in your mind for some reason It was small potatoes compared to what I just posted. I suspect that there are so many incidents, only the most disgusting make it to press.
Joe Ferguson forever Posted March 14, 2023 Posted March 14, 2023 on a happier note: https://finance.yahoo.com/news/stock-market-news-today-live-updates-march-14-2023-112356261.html
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