As of Sunday night, 3/12, the feds etc said that all deposits in the bank, insured and uninsured would be covered, but the bank stock would become worthless. It is a bail out of the depositors, not the bankers. Sounds good and no "taxes" are going to be used to pay for it. Instead a special fee is going to be charged to the banks on top of the usual fee for the FDIC insurance. This will be a bank expense and as such you and I will pay for it when we do business at the bank. In addition the feds are going to loan money to the banks to cover the loss in value of the treasury bonds and bail out that sector. Basically loan a $100 on a bond with a value of about $85 or so. We will see tomorrow if it will work. US regulators say SVB customers will be made whole as second bank fails | News Channel 3-12 Fed Panics: Signature Bank Closed By Regulators; Fed, TSY, FDIC Announce Another Banking System Bailout | ZeroHedge The feds are raising the interest rates and you and I will pay more for future loans, but the banks will be covered against the policy. Some folks are more equal than others, but at least someone lost money due to bad business decisions. They hope to keep kicking the can down the road for the rest of the banking system. . Move on folks, nothing to see here.
Ya right , My bank balance is 50 bucks , all spent on woman and coke ,booze ,speed cars & bikes .. Get er done and out !! S
Signature bank in NY just failed. That 3 in 3-4 days so far .Signature Bank is closed by regulators, the third US bank failure in a week
EyesIsWatchin Podcast #88 - Major Distractions, Race War, Gut Health, Next Plandemic Safety boxes are NOT YOURS , Pull it OUT S
I am beyond baffled, but also very thankful that I found out about this when it happened right here. Look at the nonsense that was in my "Top Stories" when I googled "World News" that night. Google really doesn't want us to know what time it is and what's going on in the world. Seriously? "Which cheese was in the news?" was more important than the SVG bank collapse? Yikes! And when I scrolled down the page there wasn't a single trace of it.
This fella reviewed SVB's Dec 2022 10-K, his comments are hilarious... SVB was toast for a while... link: Thread by @peruvian_bull on Thread Reader App salient comments:
The power of a fiat currency and a fractional banking system, 100 % backed by pure hopmium rather than any real asset. It only works as long as everyone accepts that it does work. The bank was short a couple billion, but they had a couple hundred billion floating on top of that and once the depositors started to want their money back, they couldn't get the money back from their loans quickly enough to pay and it all collapsed. They had US bonds bought at $100 carried on their books at $100 but the money was to be paid back over time and anyone buying them now wants to get paid for the interest that the bond will earn as well as the face value. Well the interest rate went fro say 1% to 3%, so the price of the bond for sale today dropped from $100 to some lower value, the same for MBS etc. The following article explains it and while it is assumes that the non insured will not get paid, it describes the problem well. If the none insured do get their money, either the tax payer or the bank customer is going to have to pick up the check. Heads I win, tails you lose. Hang on to your hat and pray, that is about all you can do as an individual at the moment. Silicon Valley Bank Followed Exactly What Regulation Recommended | ZeroHedge Drop the interest rate, support the banks and stop the fed, inflation and new bubble grows even bigger. Stand up on interest rate, slow down inflation, and we find out how high the house of cards was built. As usual the "science" of economics has 6 different answers and no real chance any one of them will work. Basically we still have checks in the checkbook, but no money in the bank and a loan may well be good, but it is only worth what is paid off every month at the old rate, not the new higher interest rate on the new loans. Now add in the real effects of limiting inflation, your old house is worth less as is your car and the old MBS securities are no longer as sure of a thing and "panics" happen if you can't bail the system out. The problem is no one has the money, feds, government, etc, all are broke and in debt up to the limits and may not be able to bail them out. At worst the system collapses, at best we kick the can farther down the road and live with inflation and try to limit it. Time to be sure you have some cash, that may become worthless, as well as beans, bullets and band aids. Old curse, "May you live in interesting times" is in full effect. While it is confusing, here is a quick introduction to what a property is actually worth if sold at action, ie fore closure sale, and a quick look into all the ways it can be figured and what you actually get for it. Indicates that interest rates and cash flow do make a lot of difference in the value. Calculations regarding real property at auction
They had to have a deal in place by 6pm EDT sunday because if the Asian markets opened without this resolved today would have been a blood bath. I was prepped for a blood bath. I guess I'm not going to profit this time. There is always next time.
Unfortunately, I find myself above the threat minimums, but fortunately my banking is covered elsewhere and backed up internationally! This kinda splains why Billy Gates and the other billionaires are buying up all the farmland in America, land is king, it's value never really drops to zero at least, so the risk level is lower then other investments!
Gold back up at $1920... It's been hovering around $1800-$1850... I think we'll know within 2 weeks how this is going to play out.
THAT IS WHAT I TRIED TO TELL SOME PEOPLE! When the bank is closed, for any reason, you are SOL and no power on Earth can help you! Not a banker, elected official, or lawyer!
Well, I didn't do too bad. I made some profit on ultra shorts at open of the market. Gold/Silver miners went up. And so did the stack. Granted, I was prepped for a blood bath .. it wound up only been a minor flesh wound but I grabbed some of the market uncertainty for the win. sometimes even a blind squirrel can find an acorn.
