SoCal Deek Posted March 13, 2023 Share Posted March 13, 2023 10 hours ago, Gene Frenkle said: The problem, apparently, is that they bought long-term debt that lost value and they couldn't get out of without taking a huge loss. Kind of like "Oh, we're sure interest rates will remain at 0% for the next 10 years, so we should base our risk analysis around that and make lots of money". What could go wrong? No schitt dummass, they are all corrupt. Plenty of greedy blame to go around. This is rich vs. poor, not left vs. right. Thanks Gene….this is my understanding of what happened as well. There are/were always bound to be all sorts of ‘reactions’ to the Fed raising rates so aggressively. As we all learned in school, every action creates an equal and opposite reaction. And I couldn’t agree more on your final sentence except I categorize it as Inside vs Outside, rather than Rich vs Poor. The Rich aren’t competing with the Poor. They don’t even give them a second’s thought. It’s why I laugh at those…insert your favorite poster here…who stick to some old two party line nonsense. Or lazily toss the word Cult around. 👍 1 Link to comment Share on other sites More sharing options...
Tommy Callahan Posted March 13, 2023 Share Posted March 13, 2023 4 minutes ago, redtail hawk said: over his lifetime? what's that average per year. Now do McCarthy or McConnell. What is it with the Mc's?. Thats a false dichotomy. those two sucks. But has nothing to do with the fact he does take lobby money, when you said he didnt. And on a side note, dude has never actually worked. just says the same thing and has made a nice living off that stick. Link to comment Share on other sites More sharing options...
SoCal Deek Posted March 13, 2023 Share Posted March 13, 2023 6 minutes ago, redtail hawk said: over his lifetime? what's that average per year. Now do McCarthy or McConnell. What is it with the Mc's?. Hey! Leave Coach out if this. I’m sure he had almost nothing to do with the collapse of that bank. Unless it took thirteen seconds, of course. 😉 2 Link to comment Share on other sites More sharing options...
Tommy Callahan Posted March 13, 2023 Share Posted March 13, 2023 3 minutes ago, SoCal Deek said: Thanks Gene….this is my understanding of what happened as well. There are/were always bound to be all sorts of ‘reactions’ to the Fed raising rates so aggressively. As we all learned in school, every action creates an equal and opposite reaction. And I couldn’t agree more on your final sentence except I categorize it as Inside vs Outside, rather than Rich vs Poor. The Rich aren’t competing with the Poor. They don’t even give them a second’s thought. It’s why I laugh at those…insert your favorite poster here…who stick to some old two party line nonsense. Or lazily toss the word Cult around. 👍 And right now there are voices and reporting on why the fed needs to stop raising rates, for just that reason. Its NUTZ ignoring the reasoning behind why rates are rising. I guess the choice is Bank runs and recession or runaway inflation. Good times. 1 Link to comment Share on other sites More sharing options...
Joe Ferguson forever Posted March 13, 2023 Share Posted March 13, 2023 5 minutes ago, SoCal Deek said: Thanks Gene….this is my understanding of what happened as well. There are/were always bound to be all sorts of ‘reactions’ to the Fed raising rates so aggressively. As we all learned in school, every action creates an equal and opposite reaction. And I couldn’t agree more on your final sentence except I categorize it as Inside vs Outside, rather than Rich vs Poor. The Rich aren’t competing with the Poor. They don’t even give them a second’s thought. It’s why I laugh at those…insert your favorite poster here…who stick to some old two party line nonsense. Or lazily toss the word Cult around. 👍 lesser of evils 8 minutes ago, SoCal Deek said: They don’t even give them a second’s thought. which one gives it more milliseconds, the Koch's or George Soros? 1 Link to comment Share on other sites More sharing options...
SoCal Deek Posted March 13, 2023 Share Posted March 13, 2023 9 minutes ago, redtail hawk said: lesser of evils which one gives it more milliseconds, the Koch's or George Soros? And here you are right back to the Party Line. One day you’ll figure out that NONE of these people give a rats arse about you. It doesn’t make them evil. It makes them human. 1 1 Link to comment Share on other sites More sharing options...
Tommy Callahan Posted March 13, 2023 Share Posted March 13, 2023 Just now, SoCal Deek said: And here you are right back to the Party Line. One day you’ll figure out that NONE of these people give a rats arse about you. It doesn’t make them evil. It makes them human. Im like "the two are the same" like that comic strip where you find what's different. but both pictures are exactly the same. Link to comment Share on other sites More sharing options...
Tenhigh Posted March 13, 2023 Share Posted March 13, 2023 10 hours ago, redtail hawk said: Looks like the street isn't overly concerned: https://finance.yahoo.com 1% up tomorrow would be great. Certainly things can change and if I had a crystal ball it would be on my yacht (I did have a fishing kayak once- sold it- too unstable). https://www.google.com/amp/s/www.cnbc.com/amp/2023/03/12/stock-market-futures-open-to-close-news.html Link to comment Share on other sites More sharing options...
SoCal Deek Posted March 13, 2023 Share Posted March 13, 2023 3 minutes ago, Chris farley said: Im like "the two are the same" like that comic strip where you find what's different. but both pictures are exactly the same. I’m not sure why people believe these ultra rich folks are the slightest bit worried about them. They aren’t! Just like you, me, and everyone else they are living their own lives trying to get ahead in the world…and yes even when they’re already what we would consider ‘ahead’. Sure, they talk a good story from time to time in order to placate their egos, score points in their social circles, and get people outside their circle to think they care, but is that really so different from EVERYONE else? I think not. No matter how much money I’ve made or had at different phases of my life I have never given Bill Gates, Elon, Soros, or any of the rest of them much thought. And they give way less to me. 1 Link to comment Share on other sites More sharing options...
All_Pro_Bills Posted March 13, 2023 Share Posted March 13, 2023 25 minutes ago, SoCal Deek said: Thanks Gene….this is my understanding of what happened as well. There are/were always bound to be all sorts of ‘reactions’ to the Fed raising rates so aggressively. As we all learned in school, every action creates an equal and opposite reaction. And I couldn’t agree more on your final sentence except I categorize it as Inside vs Outside, rather than Rich vs Poor. The Rich aren’t competing with the Poor. They don’t even give them a second’s thought. It’s why I laugh at those…insert your favorite poster here…who stick to some old two party line nonsense. Or lazily toss the word Cult around. 👍 I also agree with Gene that SIVB, which for some unknown reason, was buying the long end of the credit market but as the smoke clears I expect we'll find out they've also employed a lot of leverage. Puts and Calls, Futures, Derivatives, all on top of a fractional reserve banking system. Leverage can compound gains to many multiples but it also has the potential to multiply losses on the way down. My guess is that's what went on here. The fact they employed a clearly losing strategy of going long with lots of leverage in the face of rising rates when the Fed gave no clear signal or statement they were contemplating reversing course or standing pat is incredibly stupid. 3 Link to comment Share on other sites More sharing options...
OrangeBills Posted March 13, 2023 Share Posted March 13, 2023 13 hours 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. correct, this is Leftist entrenched Dems and then Biden, simple as that 2 Link to comment Share on other sites More sharing options...
B-Man Posted March 13, 2023 Share Posted March 13, 2023 JOEL KOTKIN: The SVB collapse marks the end of the Silicon Valley era: The Bay Area is no longer brimming with innovative startups and entrepreneurs. https://unherd.com/thepost/svbs-collapse-marks-the-end-of-the-silicon-valley-era/ Get woke, go broke. 1 1 Link to comment Share on other sites More sharing options...
Tiberius Posted March 13, 2023 Share Posted March 13, 2023 18 hours ago, aristocrat said: If you think the fed is gonna let them fail you’re crazy You'd like it if they just let the system go to hell, wouldn't you? 23 minutes ago, B-Man said: JOEL KOTKIN: The SVB collapse marks the end of the Silicon Valley era: The Bay Area is no longer brimming with innovative startups and entrepreneurs. https://unherd.com/thepost/svbs-collapse-marks-the-end-of-the-silicon-valley-era/ Get woke, go broke. Ya, this is the end! Seriously! 1 Link to comment Share on other sites More sharing options...
aristocrat Posted March 13, 2023 Share Posted March 13, 2023 3 minutes ago, Tiberius said: You'd like it if they just let the system go to hell, wouldn't you? Ya, this is the end! Seriously! They voted for this ass clown. That's capitalism baby. If their companies are worth anything someone will buy them. You didn't like covid bailouts why change your mind now? 1 Link to comment Share on other sites More sharing options...
Tiberius Posted March 13, 2023 Share Posted March 13, 2023 1 minute ago, aristocrat said: They voted for this ass clown. That's capitalism baby. If their companies are worth anything someone will buy them. You didn't like covid bailouts why change your mind now? Damn right! Link to comment Share on other sites More sharing options...
JDHillFan Posted March 13, 2023 Share Posted March 13, 2023 1 hour ago, redtail hawk said: lesser of evils which one gives it more milliseconds, the Koch's or George Soros? Yesterday you made sure to highlight that Barney Frank was a “non-employee” of the troubled bank but did not care to mention that the same article referred to him pulling in 1M from that bank in a three year period. Why did you see the first point as relevant but not the second? 1 2 Link to comment Share on other sites More sharing options...
aristocrat Posted March 13, 2023 Share Posted March 13, 2023 3 minutes ago, Tiberius said: Damn right! damn right what? 1 Link to comment Share on other sites More sharing options...
Tommy Callahan Posted March 13, 2023 Share Posted March 13, 2023 9 minutes ago, Tiberius said: You'd like it if they just let the system go to hell, wouldn't you? Ya, this is the end! Seriously! Welp. if the goal of the company is to make profits and stay in business. one does not invest in BS that has no return while having a very negative balance sheet. All while ignoring the markets and FED statements and actions about raising rates. Link to comment Share on other sites More sharing options...
Tiberius Posted March 13, 2023 Share Posted March 13, 2023 2 minutes ago, aristocrat said: damn right what? Capitalism baby! Just now, Chris farley said: Welp. if the goal of the company is to make profits and stay in business. one does not invest in BS that has no return while having a very negative balance sheet. All while ignoring the markets and FED statements and actions about raising rates. Yes, they screwed up 1 Link to comment Share on other sites More sharing options...
All_Pro_Bills Posted March 13, 2023 Share Posted March 13, 2023 11 minutes ago, Tiberius said: You'd like it if they just let the system go to hell, wouldn't you? Ya, this is the end! Seriously! I wouldn't count Yellen and Powell out just yet. Various Fed and Treasury Department officials have succeeded in holding together the financial system with some glue and rubber bands for the last 15 years so I expect they can keep the financial system together a bit longer. My read of the markets this morning is an expectation something is seriously broken, but the Fed will stop raising rates or cut, and some huge amount of liquidity is going to be injected into the banking system and the markets. If all this happens the US dollar might be the loser here along with anyone that gets paid in dollars or has assets denominated in dollars. Link to comment Share on other sites More sharing options...
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