Banking failure

[jazz]

There will be a bailout and they will sell it as a national security risk to our tech economy.

Book it. No way they let these banks go down.

If Ukraine can get $150b so can the tech unicorn economy.

[Grahamp]

I’m a bit conflicted I hate bailouts but deposits should be safe, or at the least the limits should be higher. If no bailout (at least for depositors) every regional bank in US is at risk. It doesn’t seem right if you sell a combine in Iowa you could lose half your sale because a run. It depositors aren’t backstopped by Monday morning and you have more than 250k in a bank you simply must move it out. It is irresponsible not to. I’d hate to see the First National Bank of Iowa or some other farmer/small business bank fail due to a run just because they don’t have 100% cash for all deposits. There are many well run banks who have assets in a variety of securities that could not handle every dollar over 250k withdrawn monday morning.

[biglentil]

I’m a bit conflicted I hate bailouts but deposits should be safe, or at the least the limits should be higher. If no bailout (at least for depositors) every regional bank in US is at risk. It doesn’t seem right if you sell a combine in Iowa you could lose half your sale because a run. It depositors aren’t backstopped by Monday morning and you have more than 250k in a bank you simply must move it out. It is irresponsible not to. I’d hate to see the First National Bank of Iowa or some other farmer/small business bank fail due to a run just because they don’t have 100% cash for all deposits. There are many well run banks who have assets in a variety of securities that could not handle every dollar over 250k withdrawn monday morning.

For most of U.S. history, laws require banks to hold a reserve for all of the money on their books.

Banks, by law, were required to hold a minimum of 10% of their holdings in reserves so they can meet their obligations in case of an emergency.

They just got rid of that requirement on March 26, 2020.

Banks are no longer required to keep any percentage of their deposits in reserves.

Canada same zero reserve requirements.

[biglentil]

It ain't just SVB.

[errolanderson]

This past week senate committee media question: Do you see any systemic risk to markets with the raise in rates?

Fed Chair Powell: No

I guess he couldn’t say yes . . . .

[jazz]

Some say Powell is a clandestine white hat, fighting the deep state USD weaponization.

How does a bank like this go under in a day. Sounds more like it was a deep state hit job.

[Austrian Economics]

For most of U.S. history, laws require banks to hold a reserve for all of the money on their books.

Banks, by law, were required to hold a minimum of 10% of their holdings in reserves so they can meet their obligations in case of an emergency.

They just got rid of that requirement on March 26, 2020.

Banks are no longer required to keep any percentage of their deposits in reserves.

Canada same zero reserve requirements.

Nearly everybody cheered for that nonsense in 2020. By dropping reserve requirements to zero, banks could essentially loan out their entire depositor base. In the short term, it boosted the economy by making all those deposits available for loans. Now we will find how how many are actually going to pay it back.

[errolanderson]

Will The Fed panic AKA: pivot and cut rates next week?

Oh, how the cookie crumbles . . . .

[TOM4CWB]

Signature Bank taken over by Regulators:






Apparently President Biden Administration will back and will cover ALL US uninsured Bank deposits

[TOM4CWB]

US Fed was causing contagion by raising interest rates… so quickly…without matching deposits /liabilities at Banks… new bail out for US Banks now is in place.



Will be interesting to see what PM Trudeau does for Canadian Banking Sector….

Cheers

[shtferbrains]

Crypto dependant?

[TOM4CWB]

Systematic risk in crypto currency liquidity is being analyzed … US Fed is quandary on duty interest rate increases… extreme action to stop contagion…



“Move fast and Break Things “ has been the Tech Industry Mantra. .. the US Fed has been caught in the current of destabilizing Conventional protocols…






Drop in US Dollar…likely…. no change in Japanese Yen policy… Japanese Yen likely to strengthen to 120…

Negative Yields are back in Japanese system

Cheers

[shtferbrains]

Anybody here a Gold Bull?

[fjlip]

So they lent out WAY the phuck more than they had on deposit...what happens to the outstanding LOANS?

[errolanderson]

Appears official . . . It’s a Fed bailout!

That goodness for manipulation. Bitcoin rallying, gold rallying, stock futures surge. Thank goodness, this crisis is averted.

Annoying problem for The Fed though . . . true economics always rules.