OT: 110th Obsequious Banter Thread: Giving 110% and more

[JojoTheWhale]

I know another person like that.

 

[Hollywood Cannon]

Ok, ok, I know another person like that.

 

[Embiid]

Whoever follows mainstream charlatans like Kramer deserve to lose all their money.

The regular folk though do not. Get ready for more bank chicanery this year...gonna be bumpy.

Wells Fargo says 'technical issue' causing customers to report missing deposits

The bank sought to reassure frustrated customers that their accounts remained secure and said it was working to resolve the issue.

www.nbcnews.com

 

[Beef Invictus]

So, Chuck was fired today & little one #2 "arrived" this morning; just wanted to post it here.. Because... This is a good day.

Yes! Congrats!! How are you?

 

[Jack Straw]

 

[ajgoal]

Ok, ok, I know another person like that.

Is it @Beef Invictus? I feel like it's him.

 

[Beef Invictus]

@JojoTheWhale

Does anyone actually do anything he says, or is his entire viewer base built on watching him blow it?

 

[Embiid]

I suppose he is a good distraction to the Federal Reserve ..the real unregulated market manipulator. It is only a matter of time before their attempts at avoiding a hard landing fail as usual with a financial crisis ....then of course you have the debt ceiling game of chicken to add to the perfect storm brewing.

The Silicon Valley Bank crisis will force the Fed to slash rates by 100 basis points to prevent contagion, market guru says

"In essence, the Fed is causing this bank run," said Larry McDonald, founder of The Bear Traps Report.

markets.businessinsider.com

Silicon Valley Bank imploded in a single day. It could be just the tip of the iceberg.

It turns out getting easy money at rock-bottom interest rates can come back to bite you if you're careless. More firms are about to find that out.

markets.businessinsider.com

 

[Tripod]

Buy a shovel when you land. Not from the first shovel store you see, they charge too much. Wherever your wife decides to sit you guys at the beach, walk 18’ towards the water, into it if you must, and 23’ west. Dig down that spot 8’.
Let me know how many dabloons you find.

I only found one.

 

[ellja3]

Yes! Congrats!! How are you?

All good, thanks!!

 

[Flybynite]

insider trading. He 100% knew the bank was collapsing.

 

[Embiid]

insider trading. He 100% knew the bank was collapsing.

But but Jim Cramer....

 

[Cody Webster]

 

[Embiid]

That is what they get for befriending Cramer...

 

[Lindberg]

That is what they get for befriending Cramer...

Please respect their privacy.

 

[trostol]

 

[Flybynite]

Please respect their privacy.

 

[Embiid]

Yellen and the Fed chair are going to pull a Greenspan and say they were "shocked" when things get worse....

US government moves to stop potential banking crisis

The U.S. government took extraordinary steps Sunday to stop a potential banking crisis after the historic failure of Silicon Valley Bank, assuring depositors at the failed financial institution that they would be able to access all of their money quickly.

www.seattletimes.com

 

[Flybynite]

Yellen and the Fed chair are going to pull a Greenspan and say they were "shocked" when things get worse....

US government moves to stop potential banking crisis

The U.S. government took extraordinary steps Sunday to stop a potential banking crisis after the historic failure of Silicon Valley Bank, assuring depositors at the failed financial institution that they would be able to access all of their money quickly.

www.seattletimes.com

I feel like financial media and those with stakes in it are deliberately trying to panic and cause it to become 'worse' just because they want their government hand-outs.

So I have really mixed feelings. I do think it's possible it could get worse, but I also feel like there's extortion being carried on by those people to deliberately MAKE IT WORSE just because they want government bail-outs.

Fact is those who deposited money into SVB were doing it out of greed and taking a risk. When Bank of America was offering like 0.90% interest on deposits, SVB was offering like 2.30%. It was more than double the going rate that banks were offering for deposits. If something seems too good to be true.

It was all because SVB was funneling those deposits into buying long-term treasury bonds that SVB was predicting they could make money off of because before the fed raised interest rates you could only get new treasury bonds being issued at super low returns. But with the fed raising interest rates that meant new treasury bonds/notes/bills were being issued at much higher return rates which meant the old existing treasury bonds they purchased were now going to return less than a new one which lowered their tradeable value.

In terms of assets. SVB still has a lot of money tied up into treasury bonds. I saw one market person estimating as much as maybe 90%(which is on the high end) of depositor money may be returned. 90% of the money you deposited at a bank giving you a RIDICULOUSLY high rate on deposit compared to other banks which should have given you pause and a hard look doesn't seem that unfair to me.


Those in the financial media are trying to frighten with a 'lost confidence in money deposited in banks', but that's not what happened here. You had greed on both sides. From those picking SVB and from SVB itself, and it was ALLOWED to happen because of lack of regulations some of which were rolled back 5 years ago.

If this was 2011, 2012, 2013, 2014, 2015, 2016, 2017... What happened at SVB probably wouldn't have happened. From July of 2010 to May of 2018 the Dodd-Frank Act would have required any bank with $50b or more of value/assets to have a compliance officer routinely running and submitting 'financial stress tests' to the Government to show the financial stability/solvency of the bank. These stress tests would take the current financial situation of the bank and then throw various scenarios at it over a theoretical 2 year period.

Things like interest rate hikes, market crashes, etc... and see how the money the bank hand on hand and lent out or invested would fare. This would be to keep banks from getting too heavily into something that would come back to burn them. But SVB among other smaller banks lobbied Congress to change these regulations and in 2018 it succeeded and got the threshold raised from $50B to $250b. SVB was around $200B when they collapsed so they were under that new threshold put into law in May of 2018.

 

[Embiid]

Sure there is a taper tantrum element to all of this from the "markets" but it runs way deeper than that and we're seeing the lag effect kick in from the Fed's aggressive rate hikes. SVB ("Bank") is a canary in the coal mine in many respects..it is part of the 1.6 Trillion shadow non-bank industry (private lending) that has taken on a ton of risk and has not been subject to Dodd-Frank and attempts to institute more regulations were squashed by Trump and the current administration hasn't taken much action either alhough they've "talked" about doing so. There are fundamental problems with the shadow non-banks like SVB that have been doing most of the lending since 2008. The big banks are not necessarily the problem this go around (although they are looking to benefit as people move more money to their coffers)...it is these shadow non- banks. Big fish still eat litlle fish.

Update: SVB Fallout Spreads Around World From London to Singapore

 

[Jack Straw]

So, I'm watching the World Baseball Classic and the British are playing Canada. They just mentioned that there is a pub in London (apparently a chain of pubs actually) called "Passyunk Avenue". American Dive Bars & Restaurants | Passyunk Avenue London

In Philadelphia, dive bars are the cultural centers of the city. We’ve created authentic dive bars in London for American Expats and aficionados alike to hang out, guzzle down American beer, eat authentic American food, watch the Superbowl and other sports like college football, basketball and baseball. But, don’t expect shiny new decor – just enjoy the relaxed vibe and frank and friendly service in one of our venues that have been obsessively curated to mimic life in a Philly dive bar.

@Appleyard - what do you know about this?

 

[Hollywood Cannon]

So, I'm watching the World Baseball Classic and the British are playing Canada. They just mentioned that there is a pub in London (apparently a chain of pubs actually) called "Passyunk Avenue". American Dive Bars & Restaurants | Passyunk Avenue London

In Philadelphia, dive bars are the cultural centers of the city. We’ve created authentic dive bars in London for American Expats and aficionados alike to hang out, guzzle down American beer, eat authentic American food, watch the Superbowl and other sports like college football, basketball and baseball. But, don’t expect shiny new decor – just enjoy the relaxed vibe and frank and friendly service in one of our venues that have been obsessively curated to mimic life in a Philly dive bar.

@Appleyard - what do you know about this?

Chase Utley was there, i'm pretty sure, before he boarded a plane to come here for the World Series game.

 

[BernieParent]

Honestly, I never even thought that there would be a day where I posted a hymn (okay, "hymn") that was pertinent to this board. I need a reverse "Today is not that day!" meme.

 

[Embiid]

The zombie economics of big "L" Libertarians is always precious in times of financial turmoil..nothing new.

 

[BackToTheBrierePatch]

My prediction is coming true. We are going to get most of our snow in March. Another storm late tomorrow into Wednesday morning