Run on the Banks
03-13-2023 | 04:10 PM
#11
Gets Weekends Off
Joined: Jan 2023
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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.
03-13-2023 | 05:12 PM
#12
Prime Minister/Moderator
Joined: Jan 2006
Posts: 44,618
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From: Engines Turn or People Swim
I'm all about free market but it occasionally does need some guard rails. Just occasionally.
03-13-2023 | 05:43 PM
#13
Banned
Joined: Apr 2017
Posts: 4,208
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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.
03-13-2023 | 07:13 PM
#14
Gets Weekends Off
Joined: Nov 2012
Posts: 3,730
Likes: 68
From: 1900D CA
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.
03-13-2023 | 08:20 PM
#15
— No Relief On Scope —
Joined: Mar 2015
Posts: 4,484
Likes: 265
From: B737 Left Seat
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?
03-14-2023 | 01:35 AM
#16
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Joined: Feb 2023
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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.
03-14-2023 | 04:06 AM
#17
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Joined: Jul 2013
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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.
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.
03-14-2023 | 05:01 AM
#18
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Joined: Feb 2023
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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.
03-14-2023 | 05:19 AM
#19
Line Holder
Joined: Feb 2022
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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.
03-14-2023 | 05:25 AM
#20
Gets Weekends Off
Joined: Feb 2023
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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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