Welcome to the PMBug forums - a watering hole for folks interested in gold, silver, precious metals, sound money, investing, market and economic news, central bank monetary policies, politics and more.
Why not register an account and join the discussions? When you register an account and log in, you may enjoy additional benefits including no Google ads, market data/charts, access to trade/barter with the community and much more. Registering an account is free - you have nothing to lose!
moreHow much do you know about Silicon Valley Bank, Larry W. Sonsini, Wilson Sonsini Goodrich & Rosati, Twitter, China, the 2020 election, Hunter Biden's laptop, COVID-19, censorship, the FBI, Obama & Biden? They're all intricately linked in problematic ways.
Here's how.
.@elonmusk pic.twitter.com/rVIXb09Jpk
— Political Moonshine (@PoliticalMoons2) March 11, 2023
I just don't give a f what people do in their private life. The key word there is private of course. Before this whole alphabet gender movement took shape there wasn't any programs at anyplace I ever worked promoting straight sex between a man and a woman. When did it become normal to promote sex of any type in the workplace?
So where exactly is the money coming from to bail out these banks?
The Fed, Treasury and FDIC have built a SPV that will provide loans to banks against their Treasuries and MBS collateral at mark to par (mark to fantasy). Essentially, the Fed is raising rates for everyone (markets) but the banks now (who can now get "backdoor" loans to mitigate interest rate exposure).So where exactly is the money coming from to bail out these banks? ... Looks like the fed is backstopping everything.
That statement is nowhere near correct. Hyperbole does not contribute to understanding.... The Fed has now taken control of all deposits for all banks. ...
Senator Elizabeth Warren tweeted Tuesday morning that Federal Reserve Chairman Jerome Powell "must recuse himself" from the Fed's investigation into the demise of Silicon Valley Bank.
...
Meanwhile, many folks on Twitter responded negatively to the senator's tweet, indicating blame resides on lawmakers.
...
U.S. regulators may have stemmed a banking crisis by guaranteeing deposits of collapsed Silicon Valley Bank (SVB), but some experts warn that the move has encouraged bad investor behaviour.
...
Yet by guaranteeing that depositors would lose no money, authorities have again raised the question of moral hazard - removal of people's incentive to guard against financial risk.
"This is a bailout and a major change of the way in which the U.S. system was built and its incentives," said Nicolas Veron, senior fellow at the Peterson Institute for International Economics in Washington. "The cost will be passed on to everyone who uses banking services."
"If all bank deposits are now insured, why do you need banks?"
...
"... If the Fed is now backstopping anyone facing asset/rates pain, then they are de facto allowing a massive easing of financial conditions as well as soaring moral hazard," Rabobank bank strategists Michael Every and Ben Picton wrote in a note to clients.
...
You can say it was the dereg crap in 2018 (dodd-frank, etc.) that caused it.