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Silicon Valley Bank seized by FDIC after largest failure since the Great Recession - Page 4
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Silicon Valley Bank seized by FDIC after largest failure since the Great Recession

124

Comments

  • @Maounique said:

    Bond Yield! Not bond prices.

    This signals EXACTLY THE OPPOSITE of what you are saying. The dropping interest rates on governmental debt is almost never a bad sign. The system collapses in case of HIGH yields, like in Greece, when the Greeks could no longer refinance their debt because the interest was simply too high.

    Bro forgot about inflation the tax we don't talk about

  • MaouniqueMaounique Host Rep, Veteran

    @johnnyquestion said: Bro forgot about inflation the tax we don't talk about

    And how the bond yields dropping would create inflation or would be a sign of it?
    Seriously, I am curious how trumpistanis are "thinking".

  • defaultdefault Veteran
    edited March 2023

    I just opened this thread. I know I might be late to the drama party. Any TL;DR?

    IS THE END NIGH ?!

    Thanked by 1yoursunny
  • TimboJonesTimboJones Member
    edited March 2023

    @Maounique said:
    Under Trump we again "deregulated", "helicoptered" money over wall-street and now we are paying the price of high inflation and bad infrastructure.

    Between this and the train spill, I have no idea how Trump can show his face in public and not be blamed for both. Anyone still supporting him or his politics needs a psychological evaluation.

  • MaouniqueMaounique Host Rep, Veteran

    @TimboJones said: Between this and the train spill, I have no idea how Trump can show his face in public and not be blamed for both. Anyone still supporting him or his politics needs a psychological evaluation.

    In addition to that, Biden is blamed because, you know, as someone was saying earlier, 'Murica.

  • @Maounique said:

    @TimboJones said: Between this and the train spill, I have no idea how Trump can show his face in public and not be blamed for both. Anyone still supporting him or his politics needs a psychological evaluation.

    In addition to that, Biden is blamed because, you know, as someone was saying earlier, 'Murica.

    Who is blaming Biden, other than the Putin cockholsters in this thread?

  • ralfralf Member

    4% is not high inflation. The average inflation rate over the 20th century was 7%. To put that into perspective, at 7% prices double approximately every 10 years. When my gran bought her house in the 1920s it cost £100.

    Nor are current mortgage rates particularly high. I was on a 5.5% fixed rate mortgage for the first 5 years of owning a house. In the 80s, my parents were paying 12% interest on their mortgage. It's a massive anomaly that interest rates have been near zero for the last 10 years or so.

  • MaouniqueMaounique Host Rep, Veteran

    @TimboJones said: Who is blaming Biden, other than the Putin cockholsters in this thread?

    Trumpistanis. Trump made a special pilgrimage at the first derailment site and they blamed Biden not only for the infrastructure issues, but also for "wasting" the "infrastructure money" on defending Ukraine from their god of "anti-wokeism", Putler.

  • ArkasArkas Moderator

    I have $438.32 at SVB from a transaction. Still can't transfer it out. :neutral:

  • MaouniqueMaounique Host Rep, Veteran
    edited March 2023

    @ralf said: 4% is not high inflation.

    Agreed that the average inflation was way higher in the past, but there are numerous and heavy caveats with that:

    1. Wars;
    2. Transitions from the gold standard and industrial revolution to a services-oriented economy;
    3. Oil shocks;
    4. Cold war and less integration of the "global West";
    5. Way lower productivity rates;
    6. Much less migration;
    7. Keynesism;
    8. Arms races;
    9. Much-much smaller economies unable to absorb a lot of money printing like today;
    10. This list could go on for a page.

    Let's illustrate just one of the examples, the size of the economy and one past source of inflation:

    1. Printing 1 bn when the economy is 100 bn, all other things unchanged, the inflation would be 1% spread over a certain time;
    2. Printing the same 1 bn when the economy is 10 tn means the inflation would be 0.01 spread over a certain time as well.

    This also does not consider the fact that a modern economy supplies things way cheaper, so 1 bn in 2023 in equivalent gold prices would be roughly 6 times more today than 100 years ago and the technological advances make technological goods way more performant and way cheaper, therefore further multiplying the governmental purchase power compared to basic commodities, such as grains.

    During the pandemic the money supply (Phisical notes and associates) in the US grew about 4 times, which would have translated in prices 4 times higher in the Roman Empire times, but the M2 aggregate which reflects the wider money definition grew by only some 20% out of which Inflation already "ate" at least half, and the GDP growth the other half (since 2019).

    Considering historical inflation and money printing by governments is a very-very serious undertaking, but, overall, I can spell out a few conclusions:

    1. 4% YoY is high inflation in the world of today;
    2. That is not the current inflation YoY in US, more like 6.5% which is considerably higher;
    3. Money printing during the pandemic, while one of the causes of today's inflation, is NOT the main cause, the main cause is the adjustment of the world economy to the new reality of deglobalization and the collapse of long and JIT supply chains, this greatly increases costs for the gain of supply security.

    Final conclusion:

    The US inflation, while high by any standards, is not catastrophic and not uncovered, the adjustment for the money supply growth already happened, what remains is exclusively the structural inflation as the world economy adapts to the new realities of (cold) war and deglobalisation. This kind of inflation is largely resistant to interest rates hikes which are having a much higher effect over the GDP than on the inflation, therefore must remain subdued or risk tipping the world into recession.

  • jbilohjbiloh Administrator, Veteran

    Today the market is rewarding those, at least temporarily, who bought regional banks yesterday.

    Definitely a risky game...

  • BingoBongoBingoBongo Member
    edited March 2023

    @Maounique said:

    @TimboJones said: Who is blaming Biden, other than the Putin cockholsters in this thread?

    Trumpistanis. Trump made a special pilgrimage at the first derailment site and they blamed Biden not only for the infrastructure issues, but also for "wasting" the "infrastructure money" on defending Ukraine from their god of "anti-wokeism", Putler.

    Lol! No one is blaming Biden. The whole world knows very soon Sleepy Joe will collapse in a world forum.

    He is totally incompetent to be a leader no matter if it's USA or North Korea.

    But one thing for sure his son will enjoy the money he made from CCP

    BTW! Why don't you ask that joker in Ukraine why he had so itching to join NATO?

    He neither have oil nor any need of Democracy. Then why he's dancing for Sleepy Joe!??

    Did he get paid for this massacre in his personal bank account somewhere in a offshore country?

  • Page 4 and Putin is already the culprit.

    Thanked by 1dosai
  • treesmokahtreesmokah Member
    edited March 2023

    @TimboJones said:

    @Maounique said:

    @TimboJones said: Between this and the train spill, I have no idea how Trump can show his face in public and not be blamed for both. Anyone still supporting him or his politics needs a psychological evaluation.

    In addition to that, Biden is blamed because, you know, as someone was saying earlier, 'Murica.

    Who is blaming Biden, other than the Putin cockholsters in this thread?

    Biden is the most pathetic president USA has ever seen.
    Dude is on life support and barely talks, he is a puppet.

    Not to mention his obsession with "sniffing" little girls in public.

    Thanked by 1BingoBongo
  • BingoBongoBingoBongo Member
    edited March 2023

    @treesmokah said:

    @TimboJones said:

    @Maounique said:

    @TimboJones said: Between this and the train spill, I have no idea how Trump can show his face in public and not be blamed for both. Anyone still supporting him or his politics needs a psychological evaluation.

    In addition to that, Biden is blamed because, you know, as someone was saying earlier, 'Murica.

    Who is blaming Biden, other than the Putin cockholsters in this thread?

    Not to mention his obsession with "sniffing" little girls in public.

    Lol yes!! That pedophile is the president of USA. The superpower! :lol: :lol:

    Who knows some few years back he molested some neighbor's kids

    International Court of Justice... are you listening??

  • treesmokahtreesmokah Member
    edited March 2023

    @BingoBongo said:

    @treesmokah said:

    @TimboJones said:

    @Maounique said:

    @TimboJones said: Between this and the train spill, I have no idea how Trump can show his face in public and not be blamed for both. Anyone still supporting him or his politics needs a psychological evaluation.

    In addition to that, Biden is blamed because, you know, as someone was saying earlier, 'Murica.

    Who is blaming Biden, other than the Putin cockholsters in this thread?

    Not to mention his obsession with "sniffing" little girls in public.

    Lol yes!! That pedophile is the president of USA. The superpower! :lol: :lol:

    Who knows some few years back he molested some neighbor's kids

    International Court of Justice... are you listening??

    Didn't his son call him a pedo?
    Contents of Hunter Biden iPhone seem to suggest that.

    Thanked by 1BingoBongo
  • yoursunnyyoursunny Member, IPv6 Advocate

    @default said:
    I just opened this thread. I know I might be late to the drama party. Any TL;DR?

    IS THE END NIGH ?!

    The end is always nigh.
    People should convert their assets to squats and deposit them into @crunchbits account balance.

  • It is as simple as regulators failed at doing their job again (remember 2008). There was a call to pull money from SVB as it was ripe to fail and it failed. Now we deal with another taxpayer bailout to make everyone at SVB whole on the premise that it would have caused a regional bank runs. Now that something broke the Fed is closer to pivot and the bond markets reflect that with lower interest rates and a call for higher inflation. Heads they win, tails you lose.

  • jarjar Patron Provider, Top Host, Veteran

    Honestly I’m just in awe of the concept of being in the actual presence of so many people who are experts on foreign policy, war, military intelligence, banking, Linux administration, religion, social sciences, and more.

  • Silicon Valley Bank gave $73,450,000 to "BLM Movement & Related Causes"
    Senator asks regulators to claw back SVB executives' bonuses

  • @treesmokah said:

    @TimboJones said:

    @Maounique said:

    @TimboJones said: Between this and the train spill, I have no idea how Trump can show his face in public and not be blamed for both. Anyone still supporting him or his politics needs a psychological evaluation.

    In addition to that, Biden is blamed because, you know, as someone was saying earlier, 'Murica.

    Who is blaming Biden, other than the Putin cockholsters in this thread?

    Biden is the most pathetic president USA has ever seen.

    That's demonstrably Trump in the last century. You have no credibility. The stupid shit you say is insane.

  • treesmokahtreesmokah Member
    edited March 2023

    @TimboJones said:

    @treesmokah said:

    @TimboJones said:

    @Maounique said:

    @TimboJones said: Between this and the train spill, I have no idea how Trump can show his face in public and not be blamed for both. Anyone still supporting him or his politics needs a psychological evaluation.

    In addition to that, Biden is blamed because, you know, as someone was saying earlier, 'Murica.

    Who is blaming Biden, other than the Putin cockholsters in this thread?

    Biden is the most pathetic president USA has ever seen.

    That's demonstrably Trump in the last century. You have no credibility. The stupid shit you say is insane.

    Was Trump sniffing children?
    Was Trump funding his junkie son coke & hookers addiction from taxpayers money?
    Did Trump start any war?

    And the list goes on.
    You are chronically insane as pointed out in other threads.
    You are a deranged commie that only lives in your own bubble.

    Cope & seethe.

  • MaouniqueMaounique Host Rep, Veteran

    @treesmokah said: Did Trump start any war?

    Hum, just curious, which war did Biden start? That would be easier to prove than any allegation on the list.

  • @Maounique said:

    @treesmokah said: Did Trump start any war?

    Hum, just curious, which war did Biden start? That would be easier to prove than any allegation on the list.

    Go to Ukraine & Russia thread.
    Ill hold my opinion on this topic from this thread.

    Thanked by 1BingoBongo
  • raindog308raindog308 Administrator, Veteran

    image

    This thread is about SVB, not Trump, Biden, wars, rumors of wars, or how disgusting Pepsi Peeps soda is.

    Thanked by 1equalz
  • @treesmokah said:

    @TimboJones said:

    @treesmokah said:

    @TimboJones said:

    @Maounique said:

    @TimboJones said: Between this and the train spill, I have no idea how Trump can show his face in public and not be blamed for both. Anyone still supporting him or his politics needs a psychological evaluation.

    In addition to that, Biden is blamed because, you know, as someone was saying earlier, 'Murica.

    Who is blaming Biden, other than the Putin cockholsters in this thread?

    Biden is the most pathetic president USA has ever seen.

    That's demonstrably Trump in the last century. You have no credibility. The stupid shit you say is insane.

    Was Trump sniffing children?
    Was Trump funding his junkie son coke & hookers addiction from taxpayers money?
    Did Trump start any war?

    And the list goes on.
    You are chronically insane as pointed out in other threads.
    You are a deranged commie that only lives in your own bubble.

    Cope & seethe.

    Are you mental? The guy's about to have criminal charges for illegal payoff of Stormy Daniels and on record saying he sexually assaults women.

    And you want to bring up wasting taxpayer money with the least working president (from golfing) and profited from "working from home" off the Secret Service?

    Lol, bringing up coked up son and prostitutes when Trump has at LEAST two sons involved with drugs and prostitutes.

    Don't even get us started on Trump's Golden showers, you douche. If you want to be Trump's cockholster, you be you.

  • @TimboJones said: Don't even get us started on Trump's Golden showers, you douche. If you want to be Trump's cockholster, you be you.

    I can be whoever the fuck I want.
    That's the beauty of free country and free speech - something a commie like you hate.

    Thanked by 1BingoBongo
  • MaouniqueMaounique Host Rep, Veteran
    edited March 2023

    @johnnyquestion said: It is as simple as regulators failed at doing their job again (remember 2008).

    True, 2008 came after a long string of neocon "deregulations".

    @johnnyquestion said: There was a call to pull money from SVB as it was ripe to fail and it failed.

    Nope, no bank would survive a run to it without external help. It is a self-fulfilling prophecy. bank x would fall, people go take money out, other ppl see those taking money out and they take too, banks don't have all assets liquid, won't be able to sell fast enough, would fail, no matter how solid. This is why there is a lender of last resort as well as insurance.

    @johnnyquestion said: . Now we deal with another taxpayer bailout to make everyone at SVB whole on the premise that it would have caused a regional bank runs.

    Taxpayer bail-out is a loose term. Yes, the taxpayer lends some money, but they get it back.

    TARP recovered $441.7 billion from $426.4 billion invested, earning a $15.3 billion profit or an annualized rate of return of 0.6%

    That is when a real fuck-up happened, today these banks are not guilty, the economic context is the problem. It is not only the taxpayer who intervenes, there were parts sold for 1 dollar.
    This time the taxpayer is expected to make a much bigger profit when the market would stabilize, in 2008 they more or less broke even, now the risk is much lower and the assets the bank owns, essentially government debt, is returning to the taxpayer indirectly.

    There is no comparison with 2008. The "deregulation" drive, hard pushed by trumpistanis to have "another wall street record" was nowhere near that the neocons managed in the 2000s.

    @johnnyquestion said: Now that something broke the Fed is closer to pivot and the bond markets reflect that with lower interest rates and a call for higher inflation.

    Actually, what was the net effect of the bail-out of the really fucked-up banks in 2008?

    Before the bailout:

    In 2008, chained inflation was 3.73%

    After bail-out:

    Chained inflation averaged -0.47% per year between 2008 and 2009, a total inflation amount of -0.47%

    Of course, the forces at play were very different back then but today too that would apply, just for different reasons.

  • MaouniqueMaounique Host Rep, Veteran
    edited March 2023

    @raindog308 said: This thread is about SVB, not Trump, Biden, wars, rumors of wars, or how disgusting Pepsi Peeps soda is.

    Whether we like it or not, it is about bail-outs and their history too. There is an "opinion" out there that a financial crisis is imminent and this failure is one of the many to come.

    In theory, yes, that is possible, but many things would need to happen for that. For example, the FED would have to continue raising interest rates and the taxpayer NOT to bail-out targeted banks and this way every "shorter" out there would be able to start a run to any bank. We are not in 1929, things have changed and the ppl running the economy are not complete morons, the chances of a financial crash are only theoretical.

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