Big Blitz Posted March 13, 2023 Share Posted March 13, 2023 “Listen, everyone that sold their house to take advantage of low interest rates should be ashamed - you greedy f***s. You should have known high rates were coming and your new home might soon be underwater.” —-Lib Logic on SVB These rates are rising because we wanted everyone to stay “employed” during the Covid Coup and spent 10 trillion dollars to prop this disaster up. No Covid coup - you still should be able to buy eggs for 99 cents a dozen. 1 Link to comment Share on other sites More sharing options...
Joe Ferguson forever Posted March 13, 2023 Share Posted March 13, 2023 (edited) 7 minutes ago, Big Blitz said: “Listen, everyone that sold their house to take advantage of low interest rates should be ashamed - you greedy f***s. You should have known high rates were coming and your new home might soon be underwater.” —-Lib Logic on SVB These rates are rising because we wanted everyone to stay “employed” during the Covid Coup and spent 10 trillion dollars to prop this disaster up. No Covid coup - you still should be able to buy eggs for 99 cents a dozen. If they weren't dumb enough to buy with an ARM, they're fine, at least for now. You gotta live somewhere. Rents are at record highs in most places. Those that bought rental units on low rates are doing well. Buying a home looks like a good investment to me, historically but a black swan is always possible https://fred.stlouisfed.org/series/MSPUS Edited March 13, 2023 by redtail hawk 1 Link to comment Share on other sites More sharing options...
Precision Posted March 13, 2023 Share Posted March 13, 2023 27 minutes ago, Gene Frenkle said: I mean, they weren't very smart with their money, I guess. Still, Forbes just named SVB the best bank in the country for 2023, so how does one safely navigate this mess? This is 100% on our overleveraged banking system and they deserve to fail and likely see prison time for some of it. People/companies banking with them are mostly just collateral damage. The bank deserves the blame, but individuals have a responsibility to manage their money. Many have made the argument that $250K is too low of an amount but if that is the rule then individuals should be smart enough to live by it. I am far from an expert, but I typically move money around and time multiplex the movement in smaller amounts. We also have accounts at a couple of institutions and only pool large amounts of equity on a very short-term basis for transactions requiring it (real estate purchases/etc). Similarly, we have a few annuities that we had to divide into smaller chucks ($175K) to make sure they are insured (I know, annuities are not FDIC insured for those about to flame me) even though I would have preferred a single annuity at one institution. Link to comment Share on other sites More sharing options...
Joe Ferguson forever Posted March 13, 2023 Share Posted March 13, 2023 4 minutes ago, Precision said: The bank deserves the blame, but individuals have a responsibility to manage their money. Many have made the argument that $250K is too low of an amount but if that is the rule then individuals should be smart enough to live by it. I am far from an expert, but I typically move money around and time multiplex the movement in smaller amounts. We also have accounts at a couple of institutions and only pool large amounts of equity on a very short-term basis for transactions requiring it (real estate purchases/etc). Similarly, we have a few annuities that we had to divide into smaller chucks ($175K) to make sure they are insured (I know, annuities are not FDIC insured for those about to flame me) even though I would have preferred a single annuity at one institution. When you can't trust cash as a safe investment it's a big problem. This bank appears to have engaged in malpractice. Laws were changed to protect against this but were rescinded. Time to reenact those laws. In the meantime, spreading your cash around in "reputable" banks seems wise to me. Link to comment Share on other sites More sharing options...
Wacka Posted March 13, 2023 Share Posted March 13, 2023 17 minutes ago, redtail hawk said: In economics? What I was talking about was all undergrad subjects. I worked in a department in the Stanford Medical School (was when Chelsea Clinton went to Stanford). My PhD is in Molecular and Cellular Bio from UB. Link to comment Share on other sites More sharing options...
Big Blitz Posted March 13, 2023 Share Posted March 13, 2023 Oh. 1 Link to comment Share on other sites More sharing options...
Joe Ferguson forever Posted March 13, 2023 Share Posted March 13, 2023 (edited) 10 minutes ago, Big Blitz said: Oh. from your citation: "The regulatory rollback is overwhelmingly supported by Republicans, but it could not have cleared the Senate without the support of 17 Democrats. Members of that coalition continually cited Frank's stance to make their case." 17 dems, maybe they're dirty, maybe not but 17 out of over 50. So who is more culpable? R's or D's? Who signed the bill into law?. " And though he said he would vote against the measure, " "Frank is one of the “non-employee” members on Signature’s board of directors. In this role, Frank said, he has mostly worked with a community group upset over some of Signature’s lending practices." Edited March 13, 2023 by redtail hawk Link to comment Share on other sites More sharing options...
T&C Posted March 13, 2023 Share Posted March 13, 2023 20 minutes ago, redtail hawk said: When you can't trust cash as a safe investment it's a big problem. This bank appears to have engaged in malpractice. Laws were changed to protect against this but were rescinded. Time to reenact those laws. In the meantime, spreading your cash around in "reputable" banks seems wise to me. The Spectator Index @spectatorindex · 15m BREAKING: Bloomberg reports US Treasury as saying there are other institutions with similar problems to Silicon Valley Bank Link to comment Share on other sites More sharing options...
Joe Ferguson forever Posted March 13, 2023 Share Posted March 13, 2023 3 minutes ago, T&C said: The Spectator Index @spectatorindex · 15m BREAKING: Bloomberg reports US Treasury as saying there are other institutions with similar problems to Silicon Valley Bank Hopefully they have mostly "retail" depositors. With $250k or less in the bank... Link to comment Share on other sites More sharing options...
SCBills Posted March 13, 2023 Share Posted March 13, 2023 Link to comment Share on other sites More sharing options...
Joe Ferguson forever Posted March 13, 2023 Share Posted March 13, 2023 1 minute ago, SCBills said: Fear and panic...just what America needs... Link to comment Share on other sites More sharing options...
Precision Posted March 13, 2023 Share Posted March 13, 2023 17 minutes ago, redtail hawk said: When you can't trust cash as a safe investment it's a big problem. This bank appears to have engaged in malpractice. Laws were changed to protect against this but were rescinded. Time to reenact those laws. In the meantime, spreading your cash around in "reputable" banks seems wise to me. I agree that there is malpractice at SVB but they had expectations of the Fed/market/economy that other banks do as well. That's why there will be more defaults in the near future. I have never viewed cash as a safe investment, cash is a medium of exchange. It's a tough read but try "When Money Dies" by Adam Ferguson. In 1915 the dollar and German mark were roughly on par in value. An excerpt from the book..... "In 1923, with its currency effectively worthless (the exchange rate in December of that year was one dollar to 4,200,000,000,000 marks), the German republic was all but reduced to a barter economy. Expensive cigars, artworks, and jewels were routinely exchanged for staples such as bread; a cinema ticket could be bought for a lump of coal; and a bottle of paraffin for a silk shirt. People watched helplessly as their life savings disappeared and their loved ones starved. Germany's finances descended into chaos, with severe social unrest in its wake." Link to comment Share on other sites More sharing options...
JDHillFan Posted March 13, 2023 Share Posted March 13, 2023 6 minutes ago, redtail hawk said: from your citation: "The regulatory rollback is overwhelmingly supported by Republicans, but it could not have cleared the Senate without the support of 17 Democrats. Members of that coalition continually cited Frank's stance to make their case." 17 dems, maybe they're dirty, maybe not but 17 out of over 200. " And though he said he would vote against the measure, " "Frank is one of the “non-employee” members on Signature’s board of directors. In this role, Frank said, he has mostly worked with a community group upset over some of Signature’s lending practices." Civics lesson - there are only 100 senators not 200. Nice try. Also from the article: “Frank has served on Signature's board for three years and has received more than $1 million in payments from the bank during that time.” “And though he said he would vote against the measure, Frank said it would not help the biggest Wall Street banks and denied it would increase the risks of another financial crisis.” Your selections from the article are fascinating coming from someone that has spent the better part of the week whining about ol’ Tuck. Very well done! 1 Link to comment Share on other sites More sharing options...
Joe Ferguson forever Posted March 13, 2023 Share Posted March 13, 2023 (edited) 6 minutes ago, JDHillFan said: Civics lesson - there are only 100 senators not 200. Nice try. Also from the article: “Frank has served on Signature's board for three years and has received more than $1 million in payments from the bank during that time.” “And though he said he would vote against the measure, Frank said it would not help the biggest Wall Street banks and denied it would increase the risks of another financial crisis.” Your selections from the article are fascinating coming from someone that has spent the better part of the week whining about ol’ Tuck. Very well done! I type ideas then edit. took me about 3 mins to realize my mistake. so sue me. "The initial version of the bill passed the House largely along party lines in December by a vote of 223 to 202, and passed the Senate with amendments in May 2010 with a vote of 59 to 39 again largely along party lines. Dodd–Frank Wall Street Reform and Consumer Protection Act" Guess which party supported it much more... Edited March 13, 2023 by redtail hawk Link to comment Share on other sites More sharing options...
Precision Posted March 13, 2023 Share Posted March 13, 2023 21 minutes ago, Big Blitz said: Oh. What memories, I was an undergrad at Northeastern University when old Barney spoke at commencement (in 1987). The campus newspaper had an insert that said, "Barney Who?" that students brought to the ceremony and waved around. It was a huge embarrassment for the school! Good times, good times! Link to comment Share on other sites More sharing options...
Joe Ferguson forever Posted March 13, 2023 Share Posted March 13, 2023 1 minute ago, Precision said: What memories, I was an undergrad at Northeastern University when old Barney spoke at commencement (in 1987). The campus newspaper had an insert that said, "Barney Who?" that students brought to the ceremony and waved around. It was a huge embarrassment for the school! Good times, good times! Yup, saw G Gordon Liddy speak at my school. I was one of many that held signs saying "Crime pays" while he bragged about burning his hand with a lighter in an apparent show of bravery (stupidity) while in prison. Reagan's sec of the interior's speech at U Vermont was also a hoot. 12 minutes ago, Precision said: I have never viewed cash as a safe investment, cash is a medium of exchange. It's a tough read but try "When Money Dies" by Adam Ferguson. In 1915 the dollar and German mark were roughly on par in value. So where would u have put your nest egg after WW1 if you were a German? 1 Link to comment Share on other sites More sharing options...
JDHillFan Posted March 13, 2023 Share Posted March 13, 2023 (edited) 11 minutes ago, redtail hawk said: I type ideas then edit. took me about 3 mins to realize my mistake. so sue me. "The initial version of the bill passed the House largely along party lines in December by a vote of 223 to 202, and passed the Senate with amendments in May 2010 with a vote of 59 to 39 again largely along party lines. Dodd–Frank Wall Street Reform and Consumer Protection Act" Guess which party supported it much more... You should consider proofreading before posting. It will go a ways in making you look less foolish. Now bipartisan legislation has become “yeah, but those guys supported it more”? 🤦♂️ 🤦 What made you keen on sharing Frank’s non-employee status but not sharing the news of the cool 1M he’s raked in from them? Guess we can start calling you ol’ red. Edited March 13, 2023 by JDHillFan 1 Link to comment Share on other sites More sharing options...
Precision Posted March 13, 2023 Share Posted March 13, 2023 1 minute ago, redtail hawk said: Yup, saw G Gordon Liddy speak at my school. I was one of many that held signs saying "Crime pays" while he bragged about burning his hand with a lighter in an apparent show of bravery (stupidity) while in prison. Reagan's sec of the interior's speech at U Vermont was also a hoot. Good stuff! My daughter, wife and I toured UVM, tried to get a grilled cheese outside the library afterwards but everyone had closed up shop. I guess the grilled cheese is a thing there? Link to comment Share on other sites More sharing options...
leh-nerd skin-erd Posted March 13, 2023 Share Posted March 13, 2023 I’m torn on all this. I certainly hate to see people lose their money, and confidence in the banking system props the rest of this mutha up, but it sure didn’t take long for some unprecedented **** to happen. Pays to have friends in high places I suppose. Link to comment Share on other sites More sharing options...
JDHillFan Posted March 13, 2023 Share Posted March 13, 2023 Just now, JDHillFan said: You should consider proofreading before posting. It will go a ways in making you look less foolish. Now bipartisan legislation has become “yeah, but those guys supported it more”? 🤦♂️ 🤦 What made you keen on sharing Frank’s non-employee status but not sharing the news of the cool 1M he’s raked in from them? Guess we can start calling you ol’ red. I didn’t proofread my own stuff just now. 🤦♀️ 🤦♂️ 🤦 Link to comment Share on other sites More sharing options...
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