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Ignore that smoke coming from the flaming
ruins of West Coast banks

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Posted By: Dreadnought, 5/4/2023 10:40:48 PM

You learn a lot on Twitter about banking, and it’s fascinating. Simple stuff to start, like if Jim Cramer says “This is the GREATEST [fill in the blank]!!!” I now know to giggle and run the other way as fast as I can. If I had any money, that is, so this is rhetorical, of course. Since I don’t, I’ve learned to sit back and watch whatever he’s loving explode shortly after he acts the fool about it. I’ve also learned that the people in charge of our finances right now – with Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell at the top of the power structure

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Reply 1 - Posted by: Venturer 5/4/2023 11:13:35 PM (No. 1462995)
I see the names Janet Yellen and Jerome Power. I just shake my head. What a mess we are in. There isn't a capable person at the head of any Agency in te biden Administration.
25 people like this.

Reply 2 - Posted by: LadyHen 5/4/2023 11:20:04 PM (No. 1462997)
Our true Southern banks have been far less influenced by the woke and liberal foolishness. Much more conservative in their practice. Just look at at their investment portfolios. Always do that before investing.
6 people like this.

Reply 3 - Posted by: DVC 5/5/2023 12:00:07 AM (No. 1463009)
Incompetent Demonrats trash everything that they gain control of.
18 people like this.

Reply 4 - Posted by: Trigger2 5/5/2023 2:55:37 AM (No. 1463018)
This is a plot by Treasury with WH approval to ruin banks and your wealth so they can usher in their grand digital currency to ruin your life more.
13 people like this.

Reply 5 - Posted by: frankiems 5/5/2023 6:48:45 AM (No. 1463062)
There is a lot more going on here than the author seems to know about. The Fed is raising rates not just to tame inflation, but to break the ECB (European Central Bank). The more Jerome Powell tightens, the more The Davos crowd screams. The Yellen/Biden/Obama bunch are firmly in bed with the Davos crowd and are at war with The Fed and the American Banks which are trying to stop the takeover of American banking system and our sovereignty by the Europeans and the ECB
8 people like this.

Reply 6 - Posted by: frankiems 5/5/2023 7:04:49 AM (No. 1463066)
Just a little more food for thought - https://tomluongo.me/2023/05/04/this-debt-ceiling-fight-is-truly-different-this-time/
2 people like this.

Reply 7 - Posted by: JackBurton 5/5/2023 8:37:13 AM (No. 1463117)
First of all, a bank that is well run can still have a liquidity crisis, a fatal one, if there is a run on the bank. Yes, some of the stupid ESG stuff cuts profits and strength but that's not fatal. What IS fatal is the lack of a smart government response. Think back to '08 when there was a real liquidity crisis (on the order of Jack Ryan Shadow Recruit... which I think was pretty much 'on the money' about what happened then). What was the CORRECT response? Why something to assure people that they needn't have a run on the banks. It was TARP. (which actually made money for the government, enough even to cover the losses on the Dems' extending TARP to GM and Chrysler which both lost money.). Basically, the Dems learn nothing and remember nothing. A smallish TARP project right now would stop this.
1 person likes this.

Reply 8 - Posted by: Quigley 5/5/2023 9:26:51 AM (No. 1463161)
The triggering problem SVB had was deposits that people could withdraw any time which withdrawals were to be funded out of SVB’s 30 year bond holdings. In other words a duration mismatch, ie, immediate demand deposits vs 30 year maturity bonds. I thought banks were routinely examined to make sure they didn’t have such mismatches. Then the 30 year treasury bonds lost a lot of value and the could sell them because the huge losses would evaporate their capital and they would be insolvent. After the bonds were purchased and as they lost value there was nothing that could have been done by the regulators. Hard to believe that wasn’t a regulatory no no.
2 people like this.

Reply 9 - Posted by: MickTurn 5/5/2023 11:14:31 AM (No. 1463263)
Wokie Brokie.
2 people like this.

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