Miscellaneous News
- Thread starter bd popeye
- Start date
John China might get executed if Joe slurs his order.
Yep, confirmed on that Signature Bank collapse, another one. Contagion risk likely.
You might have seen all the people who want to paper this crisis over saying "oh SVB is just an one off. They're not some yolo bank and have been following the rules very well, just got unlucky due to fed interest rate hike".
Consider this: then the actual yolo banks, are they not also affected by interest rate hikes? How many unexploded ordinance is out there in the banking sector?
You might have seen all the people who want to paper this crisis over saying "oh SVB is just an one off. They're not some yolo bank and have been following the rules very well, just got unlucky due to fed interest rate hike".
Consider this: then the actual yolo banks, are they not also affected by interest rate hikes? How many unexploded ordinance is out there in the banking sector?
Getting our of Yemen, the bottomless pit of blood and treasure, more contracts for the largest consumer of oil and gas in the world, and thawing of relations with Iran allow MBS to plough money into his vanity projects, with Chinese expertise.
Contagion risk only for those bank that mismanaged their asset-liabilities like those 2. Major banks hedged against interest risk and invest across all asset classes instead of going all in Tbills.
The main root case of SVB is due to 2019-2021 huge swell in deposits because those are the record years for startups' funding raising and they happened to make up the most of SVB's clients. Secondary cause is the funding raising drought in 2022, leading many of these cash burning startups to start using their cash reserve(instead of fund raising), thus forcing SVB who over invested in 1.9% yield TBills to offload them at loss.
supercat
Colonel
I will give this report today's "Putin soiled himself" investigative journalism award.
BTW, the US was suspected to have blown up another Russian pipeline before.
No surprise here, considering that unlike Russia, China's manufacturing prowess is as great as the US and EU combined.
Today's fine example of Western values:
I will give this report today's "Putin soiled himself" investigative journalism award.
If Washington Post reported this instead of NY Post I would’ve thought that it’s a case of projection. NY Post is no fan of Biden though.
The SVB(US$175 billion) and Signature(US$88 billion) situation won't be the only cases.
Thanks to rapidly rising interest rates, many other banks are also sitting on mountains of Treasuries that have lost a lot of value…
Banks are big investors in assets like Treasuries because they need lots of safe places to store their money. Many financial institutions invested in these investments during a period of historically low interest rates that spanned the early years of the pandemic, when banks took in tons of new deposits and lending was somewhat restricted.
But now the Fed is raising rates quickly, with the Fed chairman warning earlier this week that the central bank may have to accelerate the pace of its rate hikes to further cool the economy. The problem it creates for banks is simple: Higher rates reduce the value of their existing bonds.
According to CNN, US banks “were sitting on $620 billion in unrealized losses” at the end of last year…
For a detailed breakdown of why this is causing so much pain for other banks right now (including the big banks), I would like to recommend reading:
Lol they’re no fan of Putin either.
Making fun of Russia is a bi-partisan activity.