Miscellaneous News
- Thread starter bd popeye
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Yup and to think the morons were all freaking out over a Chinese weather ballon... talking about missing the forest for the trees
When Xi banned crypto there were even folks on this forum arguing how China was giving up easy money and oppurtunities for more wealth lol...
I have a feeling this is just the start of the domino chain reaction of things soon to come
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Rule-based order = American rules defined by blinken.
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they've historically picked insane interest rates. In 1981 the interest rate was 20%.
Dam some American are already living from paycheck to paycheck combined with credit card spendings. Americans will own nothing and probably not be happy either.they've historically picked insane interest rates. In 1981 the interest rate was 20%.
Part 2 Awakening
Part 1 here
Part 1 here
Its not looking good, this is as "isolated" to SVB as inflation was "transitory"...
its either 20% interest rates and people living in their cars, or people carting wheelbarrows of USD to buy a single slice of bread.
No.
That is the short answer. We might see a big rally in stocks Monday morning.
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The long story is rather convoluted. Summarize some basic points, very generally since I am not an expert.
1. Capitalism is and always has been an unstable system, subject to booms and busts, along with financial panics, and debt crisis. However, capitalism always manages to come back. The only real stable economic system is central planning, where it starts off okay, then goes straight to life support, until they finally pull the plug. That is why the Chinese Communist Party, has repeatedly said that they want the market to decide the allocation of inputs.
2. What happened in 2008 with the collapse of Lehman Brothers, was due to "systemic risk." That was how the New York financial industry, banks, investment banks, and insurance company, ran their industry, playing with derivatives. Okay, I don't think I want to explain this part anymore. This already looking like a real long ass post, heh.
3. What happened was credit dried up. Since the bank had to pay some other bank, due to derivative losses, they had to sell assets like stocks to pay. But the market was falling so they kept on selling. It got to a point where those financiers realized that something was wrong, and they decided not to lend money to each other. The defaults caused by the Lehman Brothers collapse, caused a credit crunch, which produced the Great Recession of 2008.
4. What is happening today this time to that Silicone Valley bank, appears to be entirely different. Remember, capitalism was always unstable, with panics and bank runs back in the previous century. The Federal Reserve Bank was created to maintain stability in the system. This crisis at that regional bank, seems tailor made for the role of the Fed. What we have here apparently is a classical bank run from antiquity. Bank need to hold reserves, or assets, to buttress their loans. If everyone withdraws their money all at once, the back has no assets, therefore, it is insolvent.
5. The simple solution is for someone bigger to buy this bank, and recapitalize it, and that problem is solved.
There is more to it, but this is already a long ass post. LOL.
Unfortunately for the USA to do as well as possible, the USA firmly intends to cripple its opposition by any means possible. Consider the destruction of the Nordstrom 2 pipelines and their attempts to sanction Russia into the ground to ruin Russia as major evidences of such an attempt. As such, it is no surprise that most of the world wants the USA to fall into ruin by their own hubris as the USA by all evidence available, the USA never intends to conduct themselves with fairness and honor. The USA can be given as many smacks to the head to make them understand that the world does not revolve around them and they still wouldn’t see reason and as the previous tweets show, they would rather repeat the same talking points about democracy and hope the problem will go away. At this rate, it will take a real collapse in society to wake them all up and by then it will be too late. Nothing you can say or do will change the end destination for the USA, so it’s probably better to plan you exit from the USA while their is still time, this is not a joke