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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".
I just opened this thread. I know I might be late to the drama party. Any TL;DR?
IS THE END NIGH ?!
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?
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.
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.
I have $438.32 at SVB from a transaction. Still can't transfer it out.
Agreed that the average inflation was way higher in the past, but there are numerous and heavy caveats with that:
Let's illustrate just one of the examples, the size of the economy and one past source of inflation:
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:
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.
Today the market is rewarding those, at least temporarily, who bought regional banks yesterday.
Definitely a risky game...
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.
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.
Lol yes!! That pedophile is the president of USA. The superpower!
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.
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.
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
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.
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.
This thread is about SVB, not Trump, Biden, wars, rumors of wars, or how disgusting Pepsi Peeps soda is.
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.
I can be whoever the fuck I want.
That's the beauty of free country and free speech - something a commie like you hate.
True, 2008 came after a long string of neocon "deregulations".
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.
Taxpayer bail-out is a loose term. Yes, the taxpayer lends some money, but they get it back.
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.
Actually, what was the net effect of the bail-out of the really fucked-up banks in 2008?
Before the bailout:
After bail-out:
Of course, the forces at play were very different back then but today too that would apply, just for different reasons.
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.