Getbig.com: American Bodybuilding, Fitness and Figure
Getbig Main Boards => Gossip & Opinions => Topic started by: Irongrip400 on March 10, 2023, 02:47:47 PM
-
https://www.reuters.com/business/finance/global-markets-banks-wrapup-1-2023-03-10/
Reading this article and a few others, I’m wondering if this is the beginning of something larger. Similar to “novel coronavirus” back in late 2019/early 2020. I know it’s a bank that deals with tech start ups, but I’m sure these higher interest rates for borrowing and having to sell off bonds at a loss to cover losses could happen with any bank that invested in these types of assets. Thoughts my mensa, economist getbiggerz?
-
I think you should trust your instincts.
Once theres a precedent set next thing you know 'regulators' have taken over your bank. For your own good of course.
Just like mandates were for your own good too.
Its like our government has been taken over. Hijacked.
It's beginning to look like any dystopian movie or novel come true.
-
WTF!
This sucks for everyone. Not just Silicon Valley tech weirdos. Everybody.
-
There was chatter when FTX went down that that’s why your money should only be in banks.
The crypto exchanges are still a risk obviously, but the sentiment behind what some were saying seems to be BS more or less.
-
I’ll give some background.
What has happened to SVB is an ongoing risk to smaller banks up during an inflationary period meaning this will linger on for many years.
2020-22 people deposited oodles of money in banks. Banks purchased govt 2yr-10yr treasuries with those deposits. treasury price goes up if rates fall, treasury price goes down if rates rise.
So these banks Bought a stack of treasuries paying 0.5%. Today it’s 3.5% meaning the price has fallen considerably vs 2021. Now, it’s ok providing nobody wants their money and you can hold out for maturity. However, if people want their money (which is what has happened) the banks must sell their treasuries on the market. Because they have 0.5% treasuries vs 3.5% it’s discounted heavily and they no longer can cover their deposits.
This hasn’t been a problem for over a decade with falling rates making the treasury more valuable. In an inflationary cycle we do the reverse. Rates rise for years making the price of treasuries less valuable over time and therefore a risk on asset for a bank if you get a run on deposits.
-
There was chatter when FTX went down that that’s why your money should only be in banks.
The crypto exchanges are still a risk obviously, but the sentiment behind what some were saying seems to be BS more or less.
Just moved a large sum to a CD from a savings account with the same FDIC bank. These accounts should be as safe as is possible with a bank. I like that the interest earned will add several thousand to my nest egg each year and the money is still accessible with a small penalty, should something unforeseen come up where I need to access it before the CD matures.
-
Just moved a large sum to a CD from a savings account with the same FDIC bank. These accounts should be as safe as is possible with a bank. I like that the interest earned will add several thousand to my nest egg each year and the money is still accessible with a small penalty, should something unforeseen come up where I need to access it before the CD matures.
I put some in short term CD and some in MMA but neither keeps pace with inflation right now.
-
https://www.reuters.com/business/finance/global-markets-banks-wrapup-1-2023-03-10/
Reading this article and a few others, I’m wondering if this is the beginning of something larger. Similar to “novel coronavirus” back in late 2019/early 2020. I know it’s a bank that deals with tech start ups, but I’m sure these higher interest rates for borrowing and having to sell off bonds at a loss to cover losses could happen with any bank that invested in these types of assets. Thoughts my mensa, economist getbiggerz?
They better not let them get a fucking bailout. But a lot of companies like Roku are going to go out of business. FDIC only covers for 250k and most of these companies had all of it in
-
They better not let them get a fucking bailout. But a lot of companies like Roku are going to go out of business. FDIC only covers for 250k and most of these companies had all of it in
Why not?
If the good people of Getbig have funds in these banks would you not want them to be made
Whole? A bailout would help us plebs from losing money.
-
Crypto exchanges risky and banks safer, but maybe not as much as you’d think, makes me think the gold/silver rush of 2023 might not be far away.
Only problem is that it is artificially held down and there is so much “paper” metal out there.
-
Why not?
If the good people of Getbig have funds in these banks would you not want them to be made
Whole? A bailout would help us plebs from losing money.
Higher inflation
-
85%+ uninsured deposits, not great
No wonder people got the yips and started running once things started escalating
-
Higher inflation
Having your property worth 50% more than 2020 not working for you yet?
Billions go into Ukraine which is Fed back to the govt senate and business ties but you draw the line at a measly few billion for plebs?
I’m not having a dig but it shows how much the wealthy have brainwashed us plebs into thinking bailing out the plebs is the cause of all our woes.
-
I’m not sure why these companies have so much money in one account. I was reading about a start up that got their first million in the bank and now it’s frozen and they’re crying about it. FDIC insures up to $250k, not sure why they wouldn’t have a few accounts, especially as a small business. You can’t leave all that money in your business account.
-
Is the Silicon Valley a reference to BHank's torn pec?
-
It'll be ok. The government will just rape the taxpayers to cover it.
-
Roku just lost 500 million in cash over this , chump change for elite getbiggers
-
There is no conspiracy (unless you count the CEO selling his shares 2 weeks ago)
My only surprise is that it took this long for this kinda thing to happen. Loads of regional and smaller banks will be under similar pressure now
Also there probably wont be a bailout here as it doesn't look like this carries any direct contagion over to any of the big banks. Everyone should get most (90% plus) of their money back.
-
I’m not sure why these companies have so much money in one account. I was reading about a start up that got their first million in the bank and now it’s frozen and they’re crying about it. FDIC insures up to $250k, not sure why they wouldn’t have a few accounts, especially as a small business. You can’t leave all that money in your business account.
If you have more than one account at the same bank is each account insured to 250k or just the total amount across all accounts? (for example checking, savings, business etc)
-
If you have more than one account at the same bank is each account insured to 250k or just the total amount across all accounts? (for example checking, savings, business etc)
https://www.fdic.gov/resources/deposit-insurance/faq/
-
Roku just lost 500 million in cash over this , chump change for elite getbiggers
How do companies like this protect themselves?
If you have 5 million in the bank do you just open 20 separate accounts?
-
How do companies like this protect themselves?
If you have 5 million in the bank do you just open 20 separate accounts?
They diversify the cash into CDs and money markets with multiple institutions to maximize return.
But there is always risk albeit very very low.
-
Just moved a large sum to a CD from a savings account with the same FDIC bank. These accounts should be as safe as is possible with a bank. I like that the interest earned will add several thousand to my nest egg each year and the money is still accessible with a small penalty, should something unforeseen come up where I need to access it before the CD matures.
Just out of curiosity, what's the APY and term on that CD?
-
Two good reads on this:
https://market-ticker.org/akcs-www?post=248293
https://alexberenson.substack.com/p/on-bank-runs-mrnas-and-existential
Every financial collapse over the past 40 years has resulted from moral hazard.
-
They diversify the cash into CDs and money markets with multiple institutions to maximize return.
But there is always risk albeit very very low.
a company of any decent size needs cash on hand for payroll, vendors, etc. it’s not about maximizing return, it’s about working capital
-
How do companies like this protect themselves?
If you have 5 million in the bank do you just open 20 separate accounts?
Silicon Valley marketed themselves well to all the start ups and tech companies from around 2016-recently. Some of the smarter ones did just what you described, multiple $250,000 accounts, Vimeo was one of these. Roku, Etsy, Roblox(Minecraft), and a few others just seemed to let it ride, and they're all playing a game of who can get their money out the fastest now.
This video, basic explains it exactly like Mayday did, the interesting part is SVB growth chart at 1:30-2 minutes in -
.
That massive jump between 2019-2022 has to crush something when it comes down.
-
Having your property worth 50% more than 2020 not working for you yet?
Billions go into Ukraine which is Fed back to the govt senate and business ties but you draw the line at a measly few billion for plebs?
I’m not having a dig but it shows how much the wealthy have brainwashed us plebs into thinking bailing out the plebs is the cause of all our woes.
Agreed. I think they have no choice but to bail it out. I don’t think it will stop what’s coming though.
-
Agreed. I think they have no choice but to bail it out. I don’t think it will stop what’s coming though.
It’s not meant to stop, it’s meant to create reason.
We need a reason for the 2nd inflationary wave. Hence the US senate laying groundwork that it’s about jobs because the govt will claim the Fed is incompetent and then blast trillions in fiscal spending which allows inflation to go higher.
The 2nd wave is going to be the one which utterly wrecks People, especially those thinking a property collapse is coming because we have rate cuts on the horizon and the largest stimmy of our generation which will send prices higher before they can collapse.
-
Silicon Valley marketed themselves well to all the start ups and tech companies from around 2016-recently. Some of the smarter ones did just what you described, multiple $250,000 accounts, Vimeo was one of these. Roku, Etsy, Roblox(Minecraft), and a few others just seemed to let it ride, and they're all playing a game of who can get their money out the fastest now.
This video, basic explains it exactly like Mayday did, the interesting part is SVB growth chart at 1:30-2 minutes in -
.
That massive jump between 2019-2022 has to crush something when it comes down.
A company like Roku probably goes through a million everyday in just operating expenses. Do you think they pay those bills via multiple bank accounts?
Think of Roku’s monthly payroll, would they have all these different banks making those payments?
Or would a company that size or larger (Walmart/Amazon) have a different method of dispersing funds?
This is something I’ve always wondered.
-
Silicon Valley Bank exec was Lehman Brothers CFO prior to 2008 collapse
https://finance.yahoo.com/news/silicon-valley-bank-exec-lehman-000556735.html
-
Why not?
If the good people of Getbig have funds in these banks would you not want them to be made
Whole? A bailout would help us plebs from losing money.
I really go back and forth on the bailout aspect. I am all for the government trying to strong arm one of the big banks to purchase SVB in its entirety, but as far as Congress passing special legislation to protect uninsured deposits for one particular bank (if a full purchase cannot be arranged) I think I am a NO. Are we now going to run around and protect every failing bank and banker at tax payer expense?
But maybe it is time to think about raising FDIC protection to more than $250,000 given that so many companies keep all of their payroll money at one isolated bank.
-
Occupy Silicon Valley
-
It’s not meant to stop, it’s meant to create reason.
We need a reason for the 2nd inflationary wave. Hence the US senate laying groundwork that it’s about jobs because the govt will claim the Fed is incompetent and then blast trillions in fiscal spending which allows inflation to go higher.
The 2nd wave is going to be the one which utterly wrecks People, especially those thinking a property collapse is coming because we have rate cuts on the horizon and the largest stimmy of our generation which will send prices higher before they can collapse.
Jobs report last week said jobs are at an all time high. They are going to raise interest rates more to combat what they are describing as decades of inflationary pressure.
Real estate has to come crashing soon. Real estate agents are still marketing properties at 2020 levels, then the appraisal is done and banks reject lending based on the appraisal.
-
I'm no economist but these assholes shut down the world for 2 years and handed out a bunch of "free money." Now we have inflation and banks are failing. Whodathunkit.
-
I’ll give some background.
What has happened to SVB is an ongoing risk to smaller banks up during an inflationary period meaning this will linger on for many years.
2020-22 people deposited oodles of money in banks. Banks purchased govt 2yr-10yr treasuries with those deposits. treasury price goes up if rates fall, treasury price goes down if rates rise.
So these banks Bought a stack of treasuries paying 0.5%. Today it’s 3.5% meaning the price has fallen considerably vs 2021. Now, it’s ok providing nobody wants their money and you can hold out for maturity. However, if people want their money (which is what has happened) the banks must sell their treasuries on the market. Because they have 0.5% treasuries vs 3.5% it’s discounted heavily and they no longer can cover their deposits.
This hasn’t been a problem for over a decade with falling rates making the treasury more valuable. In an inflationary cycle we do the reverse. Rates rise for years making the price of treasuries less valuable over time and therefore a risk on asset for a bank if you get a run on deposits.
The whole system is ass backwards. You don’t put money in the bank so they can lend it out. You do so to warehouse the money, no different from leaving you car in a public garage.
So you shouldn’t get paid interest. You should have to pay a fee.
Currently, you put your money in the bank and you have no idea what the fuck the bank is doing. That’s why you need all this deposit insurance.
-
Silicon Valley Bank exec was Lehman Brothers CFO prior to 2008 collapse
https://finance.yahoo.com/news/silicon-valley-bank-exec-lehman-000556735.html
This guy was able to get another job in an executive role? Isn’t FINRA supposed to be making sure things like this don’t happen?
-
This guy was able to get another job in an executive role? Isn’t FINRA supposed to be making sure things like this don’t happen?
The supposed reason for the FTX fail was a lack of regulation. The excuse here will be that we need even more regulation.
-
The supposed reason for the FTX fail was a lack of regulation. The excuse here will be that we need even more regulation.
LOL.
It's funny that a self regulating organization like FINRA is supposed to be the ever present "eyes and ears" safeguarding the securities and banking industry BUT they let clowns hold prominent roles over and over again.
-
LOL.
It's funny that a self regulating organization like FINRA is supposed to be the ever present "eyes and ears" safeguarding the securities and banking industry BUT they let clowns hold prominent roles over and over again.
Anyone with something on the ball wants to work in the private. So, you always have second rate people at these agencies.
Regulatory capture is inevitable, because the benefits of cooperation are greater than those of confrontation.
-
Silly Value Bank is raciss.
-
Jobs report last week said jobs are at an all time high. They are going to raise interest rates more to combat what they are describing as decades of inflationary pressure.
Real estate has to come crashing soon. Real estate agents are still marketing properties at 2020 levels, then the appraisal is done and banks reject lending based on the appraisal.
US unemployment got an uptick to 3.6%. The Fed is targeting 4.5%. We need to see UE rise across consecutive months to ensure a trend is established. Fed will raise rates along with rising UE which makes it worse of course.
Nein! There is fuck all supply of property available for sale and occupation.
1) fix interest mortgages are holding and not selling = no rush for exits
2) largest equity of home owners in decade = majority are flush with equity and comfortable
3) average build time went from 6mths to 18mths = supply is drip Fed to market = no excess supply
A property cool-down, yes, but only from areas that have boomed 50%+ which means the pullback is still well ahead of 2020 pandemic price. Commodity price inflation and lack of labour is what floats property prices. Average Joe will be utterly wrecked whilst yelling ‘but but but but it can’t!’.
FWIW I picked the inflation play when the pandemic hit and took max risk on property which would make your eyeballs bleed. I picked the first growth price for the next sale in my estate to the dollar (nobody believed me when I said it in advance). I gave my brother in law his house value for 2021 and 2022 a year in advance, even when I got 2021 right and gave him 2022 nobody believed me. I got the land sale prices right in my estate when the auction happened and again, nobody believed me.
The first real test is IR peak. I have 5.5% May. If I’m ballpark right then the strategy is still correct and my price guide continues.
-
Early in the Covid scam you had a tech bubble predicated on the idea that “Everything has changed.” Money poured into stocks that were supposedly the leaders for this new era, the ARKK stocks. The chick who runs this ETF Kathie Wood was hailed as a genius. If you ever hear her, she has a very annoying pretentious sounding voice.
The story, much like everything else about Covid was bullshit and these stock plummeted. My guess is this bank funded a lot of these companies and is on the hook for bad loans:
-
NY’s Signature bank was just closed by regulators.
-
NY’s Signature bank was just closed by regulators.
Fed announced backstop. Futures rise sharply.
-
The whole system is ass backwards. You don’t put money in the bank so they can lend it out. You do so to warehouse the money, no different from leaving you car in a public garage.
So you shouldn’t get paid interest. You should have to pay a fee.
Currently, you put your money in the bank and you have no idea what the fuck the bank is doing. That’s why you need all this deposit insurance.
That's why we need crypto on private wallets. My crypto is locked on exchanges which are no different than having your money in a bank account. Once it is unlocked I need to move it off the exchanges
-
As of tonight 3/12/23
You voted for it..you know who you are. Too fucking stupid to vote
“Regulators Announce Closure of NY’s Signature Bank, Which Held Significant Crypto Stakes”
https://www.theepochtimes.com/regulators-announce-closure-of-nys-signature-bank-which-held-significant-crypto-stakes_5117763.html
-
Get ready for a possible banking collapse….
https://www.thegatewaypundit.com/2023/03/bidens-budget-director-unable-to-answer-basic-question-about-us-banking-system-video/?fbclid=PAAablGs6VL2ygHg9HLdAx11cocUxyQbwbABjCrY5rAz27cqIUYNIvKAeuDCc
-
Could brokerage accounts be at risk? Investments at Schwab, for example?
-
This looks like the sort of bank that looked down its nose at credit unions and their members.
My local credit union may not be flashy or woke, but it's opening as usual this morning.
-
There's always a Black Swan event that comes out of nowhere to cause the next financial meltdown.
It seems to come out of nowhere but in reality was staring you in the face all along.
Will this be it?
-
NY’s Signature bank was just closed by regulators.
Barney Frank serves on the board of this second failed bank. Smells rotten.
https://investor.signatureny.com/governance/management/person-details/default.aspx?ItemId=582f632a-8fad-4d82-a932-c65735da6443 (https://investor.signatureny.com/governance/management/person-details/default.aspx?ItemId=582f632a-8fad-4d82-a932-c65735da6443)
-
Barney Frank serves on the board of this second failed bank. Smells rotten.
https://investor.signatureny.com/governance/management/person-details/default.aspx?ItemId=582f632a-8fad-4d82-a932-c65735da6443 (https://investor.signatureny.com/governance/management/person-details/default.aspx?ItemId=582f632a-8fad-4d82-a932-c65735da6443)
Barney Fa6
-
Barney Frank serves on the board of this second failed bank. Smells rotten.
Like his pervert-libturd crank, after butt-blasting his boyfriend...
-
I put some in short term CD and some in MMA but neither keeps pace with inflation right now.
Almost the only income coming close to keeping up with inflation this past year was the 8.7% COLA increase in Social Security. Since Social Security benefits make up less than a third of my income, the increase is barely noticeable. Unfortunately it is the essentials like food which suffered the highest rate of inflation.
MMA's aren't paying much more than a regular savings account, but you money is more accessible. I decided on a 11 month CD. If something major happens and I need to take money out early the penalty isn't that big a deal.
Interestingly, televisions were down 14.4% for the 2022 year. Guess this helped when I recently purchased a 48" LG OLED at Costco for around $1,000. The 13 year old Sony Bravia still worked fine but lacked the technology available today. The LG magic remote lives up to its name... the universality is truly magic. Both the sound and picture quality are noticeably improved. -Funny thing is I paid considerably more for the Sony Bravia when I bought it in 2010.
-
Get ready for a possible banking collapse….
https://www.thegatewaypundit.com/2023/03/bidens-budget-director-unable-to-answer-basic-question-about-us-banking-system-video/?fbclid=PAAablGs6VL2ygHg9HLdAx11cocUxyQbwbABjCrY5rAz27cqIUYNIvKAeuDCc
If there is a banking collapse you can blame it on Trump's roll back on bank regulations in 2018. The bill axed regulatory requirements for regional banks with less than $250 billion in assets.
-
Barney Frank serves on the board of this second failed bank. Smells rotten.
https://investor.signatureny.com/governance/management/person-details/default.aspx?ItemId=582f632a-8fad-4d82-a932-c65735da6443 (https://investor.signatureny.com/governance/management/person-details/default.aspx?ItemId=582f632a-8fad-4d82-a932-c65735da6443)
Barney Frank is one of those old school Democrats who actually are respectable. Lives in a studio apartment with his husband, assets and net worth is less than a million, worked with Ron Paul for online gaming, and refused to collect a Congressional Pension & Benefits and pays for it out of pocket. Politics aside, its nice to see someone not mooching off the taxpayers
-
If there is a banking collapse you can blame it on Trump's roll back on bank regulations in 2018. The bill axed regulatory requirements for regional banks with less than $250 billion in assets.
Holy shit Prime, you’re a walking left talking point and you fell for it. How about this then, if this is true (which it’s total bullshit because the vote went right down party lines) then why didn’t Biden reverse that regulation as well since he was hell bent on reversing damn near everything else Trump did? Just like blaming Trump for Ohio train derailment that was debunked right after the NTSB said what the cause was, this just another “smoking gun” that fell flat yet again.
How about this. Even on CNN this morning they said that bank was the Democrats ATM machine. But I’ll digress on that point. Bottom line they went all “woke” just like big tech and lost in the climate change bullshit. It still stands…Go woke go broke
-
Jeez, people who work for the government in any capacity that doesn’t involve risking one’s life shouldn’t be allowed to vote.
-
If there is a banking collapse you can blame it on Trump's roll back on bank regulations in 2018. The bill axed regulatory requirements for regional banks with less than $250 billion in assets.
So w all democrat control Biden could not reverse it ? Seek help you maskaholic vaccine boosted idiot
-
This is worth a watch….
-
his husband
::)
Fucking phaggot ass clown world we live in that people actually think this abomination is normal or good.
-
This is worth a watch….
There's a real rough, shit production podcast called Run Your Mouth. You might dig the latest epispde 3.13.23. The guy basically says that Dodd/Frank regulation requiring banks to hold a certain level of bonds (so all banks) led to a balance sheet problem as interest rates rose, and that TPTB have instituted an industry wide bail out (but not calling it that) by paying out the difference on low interest bonds in this higher interest environment, and the question becomes how much sin the fed can eat.
So although SV had it's own problems as a tech bubble bank, it IS a systemic issue.
It's on spotify and I don't have the financial chops to tell shit from shinola but they're not selling anything. Except underwear at the end, lol.
https://open.spotify.com/episode/6aovhe9UMQAzkb1rdzJkLd?si=v6PLJg09RF6LuNXTx2D-Ag
All these libertarians and anarchists wanna sell you "dual pouch" underwear on these podcasts, lol. Safe to say not many vaginas tuning in.
Dude's a quality jew. Along with Dave Smith. I'd toast a bagel for those guys any time. Getbig jew haters need to hear these people. Not fucking Shapiro.
-
So w all democrat control Biden could not reverse it ? Seek help you maskaholic vaccine boosted idiot
He's an utter clown isn't he
-
So the antithetical question to the shit I just tuned into would be:
Why didn't the banking industry get squeezed in the past when interest rates were far higher?
Were they not invested in government bonds because there was no regulation to do so? Or were they invested and they got squeezed and I just don't know about it?
-
::)
Fucking phaggot ass clown world we live in that people actually think this abomination is normal or good.
The real Andy Griffin believed it was good along with minding one's own business
-
The real Andy Griffin believed it was good along with minding one's own business
If you people stayed in the closet no one would bother you. Instead you demand to be praised, so go die of the AIDS already.
-
If you people stayed in the closet no one would bother you. Instead you demand to be praised, so go die of the AIDS already.
But we are not in a closet so deal with it snowflake
-
But we are not in a closet so deal with it snowflake
Deal with the AIDS, and the fact that Queen Vissy had your replacement lined up a month before he actually left, cockgobbler.
-
Jeez I just wanted to talk about bond liabilities.
Next thing I knew I'd stumbled into The Blue Oyster.
-
.
-
So the antithetical question to the shit I just tuned into would be:
Why didn't the banking industry get squeezed in the past when interest rates were far higher?
Were they not invested in government bonds because there was no regulation to do so? Or were they invested and they got squeezed and I just don't know about it?
1970s many banks linked to property development had huge liquidity issues. It’s the same liquidity crisis but just different assets which all suffer from the same thing. Bad timing.
A run on deposits never happens in a boom, always happens in tightening/recession.
The run on deposits it what creates the liquidity problem because banks have bought assets with deposits that they need to dump to pay back deposits.
The collapsing happens because the liquidity drain occurs in a tightening cycle where assets prices have fallen and suddenly they can’t cover deposits.
My understanding with SVB was when they bought treasuries they then hedged in the wrong direction so exposure was all one sided. Perhaps they thought rate cuts were coming and figured they’d make a quick buck?
One thing is common in history is the bank ponzi will now be incentived to keep rates high even while the central banks cut because they want depositors cash to stay with them and for nobody to want to exit. This is how they’ll help prevent liquidity drain but this is also what fucks the economy royally hard for the years to come.
In 2024 people will be screaming at banks for not passing on rate cuts and banks will be shrugging saying you bastards did a run on us in 2023 and collapsed the industry so we have to do something to keep your money safe 🤷♂️
-
Like I said…shitty investments
https://www.foxbusiness.com/politics/silicon-valley-bank-donated-millions-black-lives-matter-related-groups-social-justice-causes-records-show
-
https://www.cnbc.com/2023/03/16/group-of-financial-institutions-in-talks-to-deposit-about-20-billion-in-first-republic-sources-say.html (https://www.cnbc.com/2023/03/16/group-of-financial-institutions-in-talks-to-deposit-about-20-billion-in-first-republic-sources-say.html)
Another bank had to be bailed out. This time by other banks.
-
MMA's aren't paying much more than a regular savings account, but you money is more accessible. I decided on a 11 month CD. If something major happens and I need to take money out early the penalty isn't that big a deal.
::)
Fire your financial advisor, CPA, or whoever is feeding you this BS.
A regular savings account: 0.01%
Ally Bank's Online Savings: 3.60%
Vanguard Federal Money Market Fund: 4.53%
Ally Bank's 18 month CD: 5.00%
I bonds (12 month term): 6.89%
I bonds paid 9.62% interest between May and November 2022.
-
::)
Fire your financial advisor, CPA, or whoever is feeding you this BS.
A regular savings account: 0.01%
Ally Bank's Online Savings: 3.60%
Vanguard Federal Money Market Fund: 4.53%
Ally Bank's 18 month CD: 5.00%
I bonds (12 month term): 6.89%
I bonds paid 9.62% interest between May and November 2022.
Teach them something. lol
-
Why should you expect a return on money that you park at a bank for safekeeping any more than you should expect a garage owner to pay you for you leaving your car there? I
Now, if you lend the bank money then you should expect a return but that entails risk.
As usual Prime has it ass backwards. Like every other heavily intervened industry, Banking is so fucked that you can’t even have a real discussion about it.
-
Why should you expect a return on money that you park at a bank for safekeeping any more than you should expect a garage owner to pay you for you leaving your car there? I
Now, if you lend the bank money then you should expect a return but that entails risk.
As usual Prime has it ass backwards. Like every other heavily intervened industry, Banking is so fucked that you can’t even have a real discussion about it.
Because the garage owner is lending out my car. With fractional reserve he's lending out 10 of my cars and is in a constant state of insolvency even though it isn't exposed until everyone wants their car back.
I'm not saying they have to pay you but if one bank does and the other one charges you to garage your money, the first bank will attract more capital. Not that bank 1 would have kept pace with inflation but little has.
Anyway do you interpret the bailout and industry wide promise to forgive bond liabilities to amount to further socializatuon of the financial system? How much more raping of the tax base is possible before people ask why they're going to work?
-
Why should you expect a return on money that you park at a bank for safekeeping any more than you should expect a garage owner to pay you for you leaving your car there? I
Now, if you lend the bank money then you should expect a return but that entails risk.
As usual Prime has it ass backwards. Like every other heavily intervened industry, Banking is so fucked that you can’t even have a real discussion about it.
Tapeworm gave a good answer, but another way to look at it is the banks want you to park your money there, so they incentivise it because you are the product. Net, long term they look to make money from you by offering you loans, insurance and collecting overdraft fees.
-
Because the garage owner is lending out my car. With fractional reserve he's lending out 10 of my cars and is in a constant state of insolvency even though it isn't exposed until everyone wants their car back.
You guys just touched on a topic 98% aren’t even thinking about.
This is exactly why retail bank rates won’t be going down inline with central bank cuts. Because everybody will want their car back and they’ll collapse due to lack of liquidity.
Banks will avoid a liquidity drain by paying more for deposits and hold rates up to prevent a run on the garage.
-
As a valued Schwab client and someone with an active interest in their financial future, I am sure you have seen the recent volatility in the financial markets. In light of these events, I want to make sure you are aware of all the resources that are available to you.
The Schwab Center for Financial Research has some of the most insightful experts in the industry – including Liz Ann Sonders, Jeff Kleintop and Kathy Jones – whose regular perspectives are available in the Insights & Education section of Schwab.com. This section also contains a wealth of information to help clients go deeper into investing topics.
Of course, one prominent aspect of recent events is uncertainty in the banking sector, which we are watching very closely here at Schwab. While there is a lot of attention on this topic, I can tell you I remain confident in the long-term resilience of the U.S. financial system and in the protections provided to clients' assets. As an investor, it's important to remember that your Schwab investments held at the Broker Dealer are not commingled with assets at Schwab Bank. For more on all the ways your assets are protected, please visit our Account Protection page.
I got this email. A suspicious person might wonder if they're concerned about the viability of their bank.
-
Because the garage owner is lending out my car. With fractional reserve he's lending out 10 of my cars and is in a constant state of insolvency even though it isn't exposed until everyone wants their car back.
I'm not saying they have to pay you but if one bank does and the other one charges you to garage your money, the first bank will attract more capital. Not that bank 1 would have kept pace with inflation but little has.
Anyway do you interpret the bailout and industry wide promise to forgive bond liabilities to amount to further socializatuon of the financial system? How much more raping of the tax base is possible before people ask why they're going to work?
The garage owner is not lending out your car. He is storing it.
But you are correct that the main issue is fractional reserve banking. It creates a perpetually unstable system that requires a government backstop.
These arguments also assume that inflation is the normal course of action when in an honest system money should be getting more valuable with increases in productivity. Everything is ass backwards.
Regarding Bailouts, the system is so hopelessly intervened the only solution is more and more interventions. Eventually, the whole thing collapses under its own weight. In other words, the patient is too far gone.
-
I'm not saying they have to pay you but if one bank does and the other one charges you to garage your money, the first bank will attract more capital. Not that bank 1 would have kept pace with inflation but little has.
This is only the case because of the government backstop. Without it, you could get wiped out in the bank that’s paying you whereas in the fee bank, you know your money is sitting there.
-
This is the endgame. That’s why the Fed rushed to raise rates when prices started to rise. They knew the jig was up.
Inflation Tops 100% in Argentina As the Price of Beef Spikes
https://markets.businessinsider.com/news/currencies/inflation-100-percent-argentina-food-prices-beef-hyperinflation-economic-crisis-2023-3
-
The garage owner is not lending out your car. He is storing it.
But you are correct that the main issue is fractional reserve banking. It creates a perpetually unstable system that requires a government backstop.
These arguments also assume that inflation is the normal course of action when in an honest system money should be getting more valuable with increases in productivity. Everything is ass backwards.
Regarding Bailouts, the system is so hopelessly intervened the only solution is more and more interventions. Eventually, the whole thing collapses under its own weight. In other words, the patient is too far gone.
To stop the devaluation are you and End the Fed/ Gold Standard guy?
-
To stop the devaluation are you and End the Fed/ Gold Standard guy?
Ideally but debt levels are so high that there is zero possibility of this happening. If governments around the world were private sector businesses they would have to declare bankruptcy but the money printing option keeps the scam going.
-
To stop the devaluation are you and End the Fed/ Gold Standard guy?
The biggest wealth creation event you can live through and people don't want it to happen......
My monopoly example is the easiest way to explain exactly why we need inflationary cycles. If we do not have an inflationary cycle we all lose, even the overlords.
Despite what people say, the intent of an inflationary cycle is not to wipe out your purchasing power.
-
https://qz.com/the-feds-discount-window-is-lending-to-banks-at-2008-le-1850237214 (https://qz.com/the-feds-discount-window-is-lending-to-banks-at-2008-le-1850237214)
In October 2008, the month after Lehman Brothers collapsed, the Fed loaned out a then-record $110 billion to banks in one week, through what’s known as the discount window. (This is where the Fed makes liquidity readily available to eligible banks that need it.) That amount is equal to $153.8 billion in today’s dollars.
In comparison, in the week ended March 15, 2023, the Fed lent $152 billion at the discount window—plus another nearly $12 billion under an emergency loan program announced this past Sunday evening in the wake of the SVB failure. (The weekly discount window data is measured every Wednesday.)
Adjusting for inflation, the 2008 and 2023 figures look remarkably similar.