Mingus Dew
Microphone Assassin
- Oct 7, 2013
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FDIC appointed as receiver for Silicon Valley Bank. 16th largest bank in the US.
Stay safe folks. Level of contagion unknown.
Stay safe folks. Level of contagion unknown.
OT: Sens Lounge CVII - The Summer (of Dorion) Edition
- Thread starter AchtzehnBaby
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AchtzehnBaby
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Mingus Dew
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- Oct 7, 2013
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I am not financially responsible.
2CHAINZ
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Mingus Dew
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- Oct 7, 2013
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Super strange situation. They aren’t going to declare BK so I’m not sure what happens to depositors. Sounds like eventual repayment as certain securities on their books mature.
You’re about to see a lot of rich people pull bank deposits in favor of treasury bills and other assets. Not good.
2CHAINZ
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It's a very scary situation unfolding this could trigger a lot of collapses.
AchtzehnBaby
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coladin
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Nac Mac Feegle
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- Jun 10, 2011
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Sounds like the rich in the US are about to feel some pain. Considering what the rest of us went through for the last 20 years while the Big Boys all got bailouts, it's hard to feel any empathy on this one.
The whole system is bullshit, anyways.
SPF6ty9
Registered User
The incentives get totally screwed up via bailouts; when banks make money, they keep it, when they lose money, the taxpayers foot the bill. Charlie Munger said "show me the incentive and I'll show you the outcome". Well it seems like the incentive is returns and who cares about the risk because they don't bear it.
Add the fact that increasingly complicated and convoluted financial products are being created. Risks that not all counterparts understand are being taken with large amounts of capital. And there's always potential for some affect of contagion when some counterparts gets it wrong or overlooks something.
Anyways, treasuries are yielding as much as the S&P these days. Last time that happened was the dotcom bubble. Equity market is due for a correction. And with the historic speed of rate increases, you would figure something was likely to break. Maybe this will be the start.
Mingus Dew
Microphone Assassin
- Oct 7, 2013
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Not so much rich people but regional banks will get squeezed as deposits flee to larger institutions, crypto and government securities.
People are going to be loathe to keep more than $250k at any bank that isn’t too big to fail.
That said SVB was unique in that over 50% of its balance sheet was invested in low yield and long term assets like T Bonds and fixed rate mortgages so they took a monstrous bath when they needed to sell for liquidity. No other bank of their size has close to the same exposure. Some of the dumbest risk management since Enron.
Mingus Dew
Microphone Assassin
- Oct 7, 2013
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When they tinted the windows and put the rack on I basically would have signed a blank check lol
Alex Chiasson just scored a goal for the Detroit Red Wings in this, the year of our lord, 2023. My mind is blown.
Everyone stay safe, covid isn't over by any means.
My partner's family is all down with Covid. Her mom is a nurse and everyone is knocked out right now. Aside from flu season messing me (i've got a decimated immune system since getting covid) up, it just reminds me how scary it'd be to end up sick and in the hospital.
My partner's family is all down with Covid. Her mom is a nurse and everyone is knocked out right now. Aside from flu season messing me (i've got a decimated immune system since getting covid) up, it just reminds me how scary it'd be to end up sick and in the hospital.
Beech
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- Nov 25, 2020
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you cannot stop this!!! it is a virus and is circulating. There is only one way to protect yourself and that is with masking, social distancing and a strong level of isolation...
That has a huge price.. I have posted on here, but they get deleted.
if you need an x-ray and it is not urgent, you could be looking at 2-3 trips to a clinic and a wait of hours. If you do not arrive at 8 am and register, you risk not getting a time. Then you have to come back...my wife went through cancer in covid days.. It was insane. Some prices of goods and services are 60% higher. Stores install cctv for theft (we are talking food stores). A bank just collapsed.
Whether you believe it came from a bat to humans or escaped from a lab, who cares. It is here.. And we have to live with it. It will circulate for years and years. And kill the weak and injure the semi weak and weaken the strong. We are probably 1-2 years away from a 100% infection rate and 2-3 years away from a 200% infection rate.
Don’t know if you guys have been following JPs latest hilarious meltdown on Twitter but this made me LOL
Don’t know if you guys have been following JPs latest hilarious meltdown on Twitter but this made me LOL
Don’t know if you guys have been following JPs latest hilarious meltdown on Twitter but this made me LOL
Nac Mac Feegle
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- Jun 10, 2011
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Yep. Our workplace has been decimated since early February. Easily double the people out for illness now than at the worst part of the pandemic.
Whatever is circulating now is spreading like crazy.
Tnuoc Alucard
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- Sep 23, 2015
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When you see this message, does it mean a thread has been removed, or accidentally “ignored”?
AchtzehnBaby
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AchtzehnBaby
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LevelingSolo
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coladin
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AchtzehnBaby
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I have the body of a senior, but the maturity of millennial.
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