Posted on 03/15/2023 8:32:09 AM PDT by packagingguy
U.S. stock were sharply lower Wednesday morning as two economic prints showed a slowdown in February, coupled with fresh turmoil at Credit Suisse that weighed on sentiment.
The S&P 500 plunged 1.4%, while the Dow Jones Industrial Average fell 1.6%. Contracts with the technology-heavy Nasdaq Composite dropped 1%...
But fresh troubles at Credit Suisse injected more jitters into markets Wednesday. The European bank's stock fell more than 20%, plunging to a record low after its biggest backer said it could not provide any more assistance. Credit Suisse on Tuesday disclosed in a report that it had identified "material weaknesses" in controls over financial reporting.
(Excerpt) Read more at finance.yahoo.com ...
It’s the end of the world. Armageddon is starting to occur all over the world. Bank failures nuclear wars ahead. Not a great time when we don’t have a real leader in Washington DC.
Biden’s economy is GREAT! The last 12 months stock market returns proves it.
Zhao must go, right now. MTG has articles already written up. Can the politicians wisen up in time? /rhetorical question
Too much bank capital tied up in low yield T notes. With interest rates rising and inflation these notes are declining in value. Book value of mandatory reserves are also declining. Call it what you like but a big bailout is coming. The Saudis are buying physical gold.
80 million ballots is THE big lie.
It’s the end of the world. Armageddon is starting to occur all over the world. Bank failures nuclear wars ahead. Not a great time when we don’t have a real leader in Washington DC.”
Good-—I’m ready. I know where me and my family are going and living in the middle of this lunacy needs to be “shaken up”. The lies, division and sheer stupidity of people only has one cure-—Christ! And they will only seek Christ when they are in despair. It has to crash and crumble-—I know it will get UGLY but a reset of the soul, of sorts, is needed.
SVB had a huge exposure to Treasuries. That’s one of the reasons it cratered.
All risk is gone.
No one can fail. Which means those who study are chumps - those who take insane risk with 'learning' will win. In the short run. In the long run the University system becomes worthless.
By telling Silicon Valley they're covered it tells all banks they can go for the highest profits no matter what and hire the dumbest cool people they can find because the US will guarantee the whole ball of wax. (problem is Federal Deposit Insurance is an illusion - it can cover a few banks at minimum level but not the US Banking Industry)
More so crypto rat poison. The bond issue is cover. Svb and the rest of these banks are fishy, jpm is strong and reliable. I suspect svb and similar scum were doing the give us money and we promise high rate of return. The amount of cash sitting in such a bank, without them diversifying defies logic. Sounds like a Sam bankman fried scam.
No!!!! SVB had excess exposure to LONG TERM BONDS.
Banking 101 says don’t do that with low yield bonds. If SVB had more short term bonds there would be no collapse.
The Fed will turn dovish and halt rate hikes to prevent further decline in treasury values. You can always count on the Fed to take care of the banks.
There are probably other sub rosa measures the Fed is taking to prop things up. If only we knew...
Bookmark
Its like the people running these banks had never heard of the concept of bond duration.
This hot mess also makes one wonder where the oversight agencies were? Prolly having woke parties of their own.
The problem is that many banks have their reserves tied up in now low yield treasury notes to varying extents that are declining in value. These banks need more real capital to stay solvent. The Federal Reserve is making life very difficult for the Treasury . Biden is oblivious and keeps spending. Old rule in banking. When governments print money, banks fail.
Pretty much true
The unbelieving world 🌎🌍 is going to get Satan’s anti-messiah for 7 years of so-called ‘Peace and Security’
(Lurkers please see my FR homepage by clicking on my screen name)
Foisted upon us by a godless, demonic bunch of lying, cheating bassturds that need to be arrested, tried and publicly hanged.
Foisted upon us by a godless, demonic bunch of lying, cheating bassturds that need to be arrested, tried and publicly hanged.
which would mean endemic inflation, destroying wealth of people who plan save.
You are right, inflation is an insidious erosion of purchasing power. Its surprising that few people seem to realize the destructive compounded effect of it.
Because of inflationary pressures most people are seeing their disposable income steadily decline. The rising costs of the necessities of life (food, shelter, utilities, insurance, transport, health care, etc) are chipping away what little discretionary income is left over for purchasing other things. A very bad situation for a consume driven economy.
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