The second largest bank failure in American History?…C’mon man, no joke.

[Fogie]

Yep…who woulda thought?

https://www.cnn.com/2023/03/10/investing/svb-bank/index.html

 

[The_Duck_Master]

Tip of the iceberg. All that free money banks took a few years ago and had to invest in 0% treasuries might just bite us all in the butt if folks realize the house of cards many have become in an era of 5% risk free returns and a crashing stock market. Also, remember that during covid the fed suspended the 10% bank reserve due to logistical issues? As I pointed out a few months ago, they never have renewed that requirement. Makes one wonder if they are trying to eliminate cold hard cash as a thing.

I said in the polling thread that I expect a republican to win in 2024 because brain dead Joe is going to make Carter look like an economic savant.

 

[Goosekiller]

There is more to come, with ridiculous amount of printed money and borrowing at an all time high.

 

[stevena198301]

There is more to come, with ridiculous amount of printed money and borrowing at an all time high.

Only thing that can fix it is printing more money, and allowing more borrowing. Bet that.

 

[The_Duck_Master]

There is more to come, with ridiculous amount of printed money and borrowing at an all time high.

In another recent thread it was pointed out that almost everyone locked in mortgages at historically low fixed rates the past few years. It makes zero sense to move or sell in the current environment. What most don't understand is that the larger risk we face is not from private mortgages this time. The risk is from corporate debt that usually has a much shorter term. They will start to have to pay it off or refinance at MUCH higher rates this year. Prepare for widespread layoffs and another 20-30% drop in stocks.

Only thing that can fix it is printing more money, and allowing more borrowing. Bet that.

In order to service the debt they will need to lower the rate back to near zero and that risks rampant inflation. Think Jimmy Carter type inflation rates along the lines of 15%.

I'm not saying we're going to have a choice, but what I see coming is not good.

It sort of makes sense why brain dead is talking about rent controls. It is one of the few things he can theoretically do to curb the housing part of CPI given how upside down the housing market will be in that scenario.

 

[Lip Shooter]

And the peasants scream

“We want government control of money”

“We are okay with inflation”

Decentralized (bitcoin) money is dumb, it eliminates government control and inflation.

Opps forgot to add:

“We are okay with banks failing “

 

[pintail2222]

The risk is from corporate debt that usually has a much shorter term. They will start to have to pay it off or refinance at MUCH higher rates this year.

And circle gets the square.

As in the case of the OP where SVB sold a bunch of securities at a loss and then announced that it would sell $2.25 billion in new shares to shore up its balance sheet. That triggered a panic among key venture capital firms, who reportedly advised companies to withdraw their money from the bank.

 

[JP]

Citizens' savings accounts now at historic lows coupled with credit card debt at all time highs may well be the other shoe to drop..

Batten the hatches.

 

[CookMan]

The big short all over again and again just a different scenario. FYI This Is All Trumps Fault!

 

[stevena198301]

along the lines of 15%.

We are already there, IMO. Books have been cooked to make it not look so, but I sure feel like my money isn’t even going 85% as far as it was just a few years ago.