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Run on the Banks

Old 03-13-2023, 04:10 PM
  #11  
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Hmmmm, didn't think this years catastrophe would be another good old fashioned financial crisis. Thought it would be something more out of the ordinary considering the 2020-21 COVID and 2022 war crises.
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Old 03-13-2023, 05:12 PM
  #12  
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Originally Posted by SonicFlyer View Post
No, it's not the government's job to protect the banks, investors, and prop up bad business decisions.
I think it's OK for the gov to gently intervene to prevent a panic attack from spreading to all of the other banks which are operating under perfectly reasonable and widely accepted basis'.

I'm all about free market but it occasionally does need some guard rails. Just occasionally.
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Old 03-13-2023, 05:43 PM
  #13  
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Originally Posted by rickair7777 View Post
I think it's OK for the gov to gently intervene to prevent a panic attack from spreading to all of the other banks which are operating under perfectly reasonable and widely accepted basis'.
The US Constitution disagrees with you.

Originally Posted by rickair7777 View Post
I'm all about free market but it occasionally does need some guard rails. Just occasionally.
Have to abandon the free market in order to save the free market, right?

But anyway, from my understanding it looks like FDIC is using their pool of money to cover the gap for SVB between now and the time their bonds are available for liquidation.
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Old 03-13-2023, 07:13 PM
  #14  
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Originally Posted by trip View Post
I went in this morning to make my monthly cash withdrawal from a regional west coast bank that has solid footing and has stayed out of the limelight. They've always had no problem with it and advised if I needed more to call ahead so they'd be sure to have it. Today was different as they immediately balked and looked as if they seen a ghost, after offering half my request the teller muttered she was just doing what she was told, I guess things have changed. After some push back I was given my original withdrawal request but the awkward exchange sure didn't give me the warm fuzzy everything is OK.
Just out of curiosity, what are you doing making large, monthly cash withdrawals for? And how much cash do you take out that the bank was hesitant to do?!?
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Old 03-13-2023, 08:20 PM
  #15  
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Let’s see. Invest heavily in mortgage securities. Government prints tons on money, Fed raises interest rates. Mortgage securities now losing tons of money. I think we’ve seen this play out before?
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Old 03-14-2023, 01:35 AM
  #16  
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Originally Posted by at6d View Post
Let’s see. Invest heavily in mortgage securities. Government prints tons on money, Fed raises interest rates. Mortgage securities now losing tons of money. I think we’ve seen this play out before?
The Fed raised interest rates to slowly. They needed to stifle economic growth for a bit to slow the inflation. But the small increases along with the passage of the latest round of spending before the election kept everything too hot. They needed to raise the interest rates to 8% overnight last year but they didn’t.
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Old 03-14-2023, 04:06 AM
  #17  
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Originally Posted by SonicFlyer View Post
The US Constitution disagrees with you.

Have to abandon the free market in order to save the free market, right?

But anyway, from my understanding it looks like FDIC is using their pool of money to cover the gap for SVB between now and the time their bonds are available for liquidation.
Better file a lawsuit and get it in front of your Supreme Court since it's so against the Constitution. I'm sure all the conservative think tanks and law firms just missed that one.
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Old 03-14-2023, 05:01 AM
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Originally Posted by CBreezy View Post
Better file a lawsuit and get it in front of your Supreme Court since it's so against the Constitution. I'm sure all the conservative think tanks and law firms just missed that one.
Better watch out for nesting birds, straw man. 🦅

But, it isn’t a violation of OUR constitution. Libs mishandling the economy is more or less tradition.

Last edited by Forward lav; 03-14-2023 at 05:16 AM.
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Old 03-14-2023, 05:19 AM
  #19  
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Originally Posted by DownWithNarita View Post
Hmmmm, didn't think this years catastrophe would be another good old fashioned financial crisis. Thought it would be something more out of the ordinary considering the 2020-21 COVID and 2022 war crises.
To this “re-run” point, how did they pass the stress tests banks have to go through now? Maybe the stress test is not stressing the right stuff?? It is kinda refreshing that though we may have lost control of our republic to corporations we can shut the corporations down if we (the people) ask for our FDIC money back.
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Old 03-14-2023, 05:25 AM
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Originally Posted by Round Luggage View Post
To this “re-run” point, how did they pass the stress tests banks have to go through now? Maybe the stress test is not stressing the right stuff??
They probably did pass eye, depending on when the audit was run. They invested heavily in govt bonds that was effected due to the inverted yield curve and mortgaged backed securities. Any bank that has ever invested in those deserves their fate.
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