How about the people charged with oversight, actually do their job?
Most that don't understand, don't have $250,000 in deposits either.
I have said that exact thing as well. But could you imagine the shitshow on Capital Hill if a regulator told a bank they held too many 10yr Treasuries?How about the people charged with oversight, actually do their job?
Here's the shit they are focused on.....U.S. Federal Reserve to review its oversight of Silicon Valley Bank
The U.S. Federal Reserve announced on Monday it is reviewing its oversight of Silicon Valley Bank in the wake of its abrupt failure Friday.www.reuters.com
The fundamental problem is that banks don't work without some type of leverage. There is no viable model where a bank takes your deposits and then holds them 100% so you can fully withdraw at any time. That would be "rent_secure_matress.com". They would have to charge very large fees to all depositors to essentially be a cash security firm, not a bank.
Nahh, 2008 and the Pandemic have taught central bankers that since money is now a mathematical fiction they can just "create" as much as they need to meet depositor needs. And that is probably a lot less than you would guess because SVB and the like aren't actually losing tens of billions - they are just not sufficiently liquid. But modern money is infinitely liquid since it only takes the press of a key to generate.
The moral hazard of the FDIC - they have no reason to be educated and thoughtful about their money.
This was my very first thought when I heard the SVB news. Debt ceiling games at this point would be suicide. But I wouldn't put anything past the dumbest 5 congress members of each party.
Its not the 1% or less with $250k in deposits that I worry about, but maybe we should. In SVB’s case, many people with way over the $250k mark were the ones trying to withdraw in a run. But millions of people with just a thousand bucks or so all withdrawing at once could collapse all the banks. Thats a lot of money that adds up quickly. It is literally what happened in 1929.
Flat land, no cliffs, obviously not prime lemming real estate
I'm buying stocks in shovel and coffee makers and . They will need to put that money somewhere and burying a coffee can in the back yard would seem like a great idea.
Just waiting for the frost to go out...
I am not worried about a 1-percenter and their $250K, rather it is the small to mid-sized businesses that have >$250k payrolls they can't meet and the working class folks not getting paychecks on Friday. 90% of bailing out of the "rich" is really making sure the sh*t flowing down hill to everybody else isn't fatal - see, Great Depression.
Which is the reasoning by backing SVB 100%. People are panicky creatures, the fed has to go hard right out the gate.
My new frost-proof business plan. Buy a large mattress and stick it in my locked firearms area. You send me all your cash and I will stuff it in my mattress and have my two labs guard it. When you want it back I will send it all minus $100 processing fee. What could go wrong? #securemattress.com
This is perhaps the only time that "trickle down" economics works.
