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Stonks
Mar 12, 2023 12:14:00 GMT -6
Post by NOTTHOR on Mar 12, 2023 12:14:00 GMT -6
Just read through this guys tweet and others. At first felt sorry for the guy. Sounded like he was a regular Joe losing his life savings but as I read further it’s apparent he is not. I’m sure after losing his ass with this bank he still has a lot more cash on hand than I do with my credit union. LMAO, he even chased the stock to $0. Oh man, I wish I had the twitter so I could respond with: "Cool story, brah, please link Tania's onlyfans when you set it up."
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Stonks
Mar 12, 2023 13:00:55 GMT -6
via mobile
Post by Ginger on Mar 12, 2023 13:00:55 GMT -6
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Stonks
Mar 12, 2023 13:14:50 GMT -6
Post by NOTTHOR on Mar 12, 2023 13:14:50 GMT -6
What should I take from this? That this bank run was a GOP conspiracy?
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Stonks
Mar 12, 2023 13:33:29 GMT -6
via mobile
Post by Ginger on Mar 12, 2023 13:33:29 GMT -6
What should I take from this? That this bank run was a GOP conspiracy? I think the GOP is trying to explain that it happened due to “wokeness” whatever that means in their head at any given time.
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Other
Sports Moderator
Interim Master of the Universe
Posts: 5,181
Tits or GTFO: GTFO
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Stonks
Mar 12, 2023 14:02:37 GMT -6
via mobile
Post by Other on Mar 12, 2023 14:02:37 GMT -6
What should I take from this? That this bank run was a GOP conspiracy? I can’t believed you typed this out AND thought it’d be a good idea to post it.
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Stonks
Mar 12, 2023 14:22:50 GMT -6
Post by NOTTHOR on Mar 12, 2023 14:22:50 GMT -6
What should I take from this? That this bank run was a GOP conspiracy? I can’t believed you typed this out AND thought it’d be a good idea to post it. Mr. Collins tweet literally says: "It serves to obfuscate the reality: there was a panicky bank run, frontrun by some of the GOP's biggest donors." I don't care about the fictitious claims of that man claiming that our greatest strength, diversity, had anything to do with this. I'm trying to ascertain what the reality of the situation is. I know it was Trump's fault, but there has to be more to it than that. Was this a shadowy GOP conspiracy?
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Stonks
Mar 12, 2023 17:47:54 GMT -6
via mobile
Post by Ginger on Mar 12, 2023 17:47:54 GMT -6
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Stonks
Mar 12, 2023 23:15:24 GMT -6
via mobile
Post by Ginger on Mar 12, 2023 23:15:24 GMT -6
This guy is getting raked for his blow by blow tweet about the bank run
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Stonks
Mar 13, 2023 8:24:27 GMT -6
via mobile
Post by Ginger on Mar 13, 2023 8:24:27 GMT -6
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Stonks
Mar 13, 2023 8:29:25 GMT -6
via mobile
Post by Ginger on Mar 13, 2023 8:29:25 GMT -6
The comments on Twitter are always great.
This is my fav
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Post by Stan's Field on Mar 13, 2023 8:41:11 GMT -6
Maybe someone can loan them some PPP money?/?
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Stonks
Mar 13, 2023 8:50:32 GMT -6
via mobile
Post by Ginger on Mar 13, 2023 8:50:32 GMT -6
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Stonks
Mar 13, 2023 9:02:46 GMT -6
Post by NOTTHOR on Mar 13, 2023 9:02:46 GMT -6
The comments on Twitter are always great. This is my fav Ah yes, the old "deregulation caused this" canard. The Fed caused 2008, the Fed caused this. Didn't you just get a college degree? Did you take a class on accounting? Let me explain really succinctly. Assume a bank has $90 in deposits. Those are liabilities, they have to give them back on demand, and the banks cost for those deposits is 0.5%. Against that they have $100 in loans that they have made, let's just say treasury bonds at a 3% yield. Liabilities minus assets is shareholder equity (they have fancy names in banking for this, but they are irrelevant for this) and that would be $10. Now it looks like an infinite money glitch, borrow at .5%, lend at 3%. Brilliant. Now let's just say the Fed jacks the shit out of interest rates, suddenly the value of those bonds goes way the hell down (anyone buying a new bond would get 5% and so the price of the old bonds yielding 3% drops in value until the point it has a yield equal to new bonds). The assets are worth less, let's just say they are worth $90. Now the shareholder equity goes to $0. This is when a bank is totally fucked. And oh by the way, the cost to bring new deposits in the door suddenly isn't 0.5%, now it's fucking 4.5% because that is what everyone can get on short term treasuries. That's where the entire banking system is right now. There is a run on banks because people want yield. Unfortunately, neither the banks nor the ever wise and knowing regulators modeled demand deposit interest rates going from 0.01% to 4.5% in under a year because this represents a massive outlier scenario that turns every bank upside down very quickly. In the past the deposits were very sticky, it would take a few years before banks had to up their deposit rates to match prevailing market rates on other fixed income investments so this shit was never a problem. Now where you can open an account elsewhere in 2 minutes and click 4 keys to do the transfer it is a giant fucking problem. In essence, every bank is probably bordering on insolvency right now and that is just due to diminution of the value of assets based on interest rates going up. We haven't even scratched the surface of banks going under due to credit risk or defaults. There is going to be a bankruptcy filed this week by Diamond Holdings, it won't be a top 50, but it will start scaring the piss out of banks who realized that they bankrolled a bunch of dogshit investments that are never going to pay off. At the end of the day you simply can't regulate away the risk of the Fed running an expansionary monetary policy for 15 years and then trying to turn it into a deflationary monetary policy. By definition there simply isn't enough money in circulation to repay the debts when this shift happens and no regulation can undo this immutable law of economics. Just like 2008 or Japan in 1991, the only thing you can do is "extend and pretend." You can avert bank failures with unlimited Fed backstops, but it takes a decade or more to work the shitpaper through the system.
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Post by livingintheusa on Mar 13, 2023 10:54:26 GMT -6
Bro you think too muck
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Stonks
Mar 13, 2023 13:12:30 GMT -6
via mobile
Post by Ginger on Mar 13, 2023 13:12:30 GMT -6
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Stonks
Mar 13, 2023 13:33:16 GMT -6
Post by NOTTHOR on Mar 13, 2023 13:33:16 GMT -6
In English: A bank YOLOed a bunch of shit paper. Their depositors, who are way fucking richer than you'll ever imagine, stood to lose some money because many of them had YOLOed their deposit accounts with this shit bank even though we told everyone not to. We can't let rich people lose money, so we're gonna charge your bank a fee because this other bank was reckless, but don't worry, only the fatcat bankers will pay this fee.
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Stonks
Mar 13, 2023 17:28:13 GMT -6
Post by LansingHawk on Mar 13, 2023 17:28:13 GMT -6
The comments on Twitter are always great. This is my fav Ah yes, the old "deregulation caused this" canard. The Fed caused 2008, the Fed caused this. Didn't you just get a college degree? Did you take a class on accounting? Let me explain really succinctly. Assume a bank has $90 in deposits. Those are liabilities, they have to give them back on demand, and the banks cost for those deposits is 0.5%. Against that they have $100 in loans that they have made, let's just say treasury bonds at a 3% yield. Liabilities minus assets is shareholder equity (they have fancy names in banking for this, but they are irrelevant for this) and that would be $10. Now it looks like an infinite money glitch, borrow at .5%, lend at 3%. Brilliant. Now let's just say the Fed jacks the shit out of interest rates, suddenly the value of those bonds goes way the hell down (anyone buying a new bond would get 5% and so the price of the old bonds yielding 3% drops in value until the point it has a yield equal to new bonds). The assets are worth less, let's just say they are worth $90. Now the shareholder equity goes to $0. This is when a bank is totally fucked. And oh by the way, the cost to bring new deposits in the door suddenly isn't 0.5%, now it's fucking 4.5% because that is what everyone can get on short term treasuries. That's where the entire banking system is right now. There is a run on banks because people want yield. Unfortunately, neither the banks nor the ever wise and knowing regulators modeled demand deposit interest rates going from 0.01% to 4.5% in under a year because this represents a massive outlier scenario that turns every bank upside down very quickly. In the past the deposits were very sticky, it would take a few years before banks had to up their deposit rates to match prevailing market rates on other fixed income investments so this shit was never a problem. Now where you can open an account elsewhere in 2 minutes and click 4 keys to do the transfer it is a giant fucking problem. In essence, every bank is probably bordering on insolvency right now and that is just due to diminution of the value of assets based on interest rates going up. We haven't even scratched the surface of banks going under due to credit risk or defaults. There is going to be a bankruptcy filed this week by Diamond Holdings, it won't be a top 50, but it will start scaring the piss out of banks who realized that they bankrolled a bunch of dogshit investments that are never going to pay off. At the end of the day you simply can't regulate away the risk of the Fed running an expansionary monetary policy for 15 years and then trying to turn it into a deflationary monetary policy. By definition there simply isn't enough money in circulation to repay the debts when this shift happens and no regulation can undo this immutable law of economics. Just like 2008 or Japan in 1991, the only thing you can do is "extend and pretend." You can avert bank failures with unlimited Fed backstops, but it takes a decade or more to work the shitpaper through the system. Maybe these banks need to stop making dogshit investments.
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Other
Sports Moderator
Interim Master of the Universe
Posts: 5,181
Tits or GTFO: GTFO
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Post by Other on Mar 13, 2023 18:46:13 GMT -6
Ah yes, the old "deregulation caused this" canard. The Fed caused 2008, the Fed caused this. Didn't you just get a college degree? Did you take a class on accounting? Let me explain really succinctly. Assume a bank has $90 in deposits. Those are liabilities, they have to give them back on demand, and the banks cost for those deposits is 0.5%. Against that they have $100 in loans that they have made, let's just say treasury bonds at a 3% yield. Liabilities minus assets is shareholder equity (they have fancy names in banking for this, but they are irrelevant for this) and that would be $10. Now it looks like an infinite money glitch, borrow at .5%, lend at 3%. Brilliant. Now let's just say the Fed jacks the shit out of interest rates, suddenly the value of those bonds goes way the hell down (anyone buying a new bond would get 5% and so the price of the old bonds yielding 3% drops in value until the point it has a yield equal to new bonds). The assets are worth less, let's just say they are worth $90. Now the shareholder equity goes to $0. This is when a bank is totally fucked. And oh by the way, the cost to bring new deposits in the door suddenly isn't 0.5%, now it's fucking 4.5% because that is what everyone can get on short term treasuries. That's where the entire banking system is right now. There is a run on banks because people want yield. Unfortunately, neither the banks nor the ever wise and knowing regulators modeled demand deposit interest rates going from 0.01% to 4.5% in under a year because this represents a massive outlier scenario that turns every bank upside down very quickly. In the past the deposits were very sticky, it would take a few years before banks had to up their deposit rates to match prevailing market rates on other fixed income investments so this shit was never a problem. Now where you can open an account elsewhere in 2 minutes and click 4 keys to do the transfer it is a giant fucking problem. In essence, every bank is probably bordering on insolvency right now and that is just due to diminution of the value of assets based on interest rates going up. We haven't even scratched the surface of banks going under due to credit risk or defaults. There is going to be a bankruptcy filed this week by Diamond Holdings, it won't be a top 50, but it will start scaring the piss out of banks who realized that they bankrolled a bunch of dogshit investments that are never going to pay off. At the end of the day you simply can't regulate away the risk of the Fed running an expansionary monetary policy for 15 years and then trying to turn it into a deflationary monetary policy. By definition there simply isn't enough money in circulation to repay the debts when this shift happens and no regulation can undo this immutable law of economics. Just like 2008 or Japan in 1991, the only thing you can do is "extend and pretend." You can avert bank failures with unlimited Fed backstops, but it takes a decade or more to work the shitpaper through the system. Maybe these banks need to stop making dogshit investments. No no no no. Maximum risk maximum gain, privatize the the profits and socialize the losses. That’s how this game is played.
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Post by socal on Mar 14, 2023 3:19:12 GMT -6
Maybe these banks need to stop making dogshit investments. No no no no. Maximum risk maximum gain, privatize the the profits and socialize the losses. That’s how this game is played. I like Bing's explantion better... i.redd.it/ibowwcsrqpna1.jpg
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Post by Stan's Field on Mar 14, 2023 6:40:29 GMT -6
Ting tang, walla walla bank crash bang
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Stonks
Mar 14, 2023 8:01:11 GMT -6
via mobile
Post by Ginger on Mar 14, 2023 8:01:11 GMT -6
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Post by LansingHawk on Mar 14, 2023 8:47:12 GMT -6
Pretty enlightening piece on Tucker by Ari Melber on MSNBC last night. I didn't realize Tucker started on CNN and MSNBC but was even then more interested in his brand, money, and power. Apparently that is more important to him than facts. Feel sorry for the rubes that follow him.
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Stonks
Mar 14, 2023 12:07:53 GMT -6
Post by NOTTHOR on Mar 14, 2023 12:07:53 GMT -6
Ah yes, the old "deregulation caused this" canard. The Fed caused 2008, the Fed caused this. Didn't you just get a college degree? Did you take a class on accounting? Let me explain really succinctly. Assume a bank has $90 in deposits. Those are liabilities, they have to give them back on demand, and the banks cost for those deposits is 0.5%. Against that they have $100 in loans that they have made, let's just say treasury bonds at a 3% yield. Liabilities minus assets is shareholder equity (they have fancy names in banking for this, but they are irrelevant for this) and that would be $10. Now it looks like an infinite money glitch, borrow at .5%, lend at 3%. Brilliant. Now let's just say the Fed jacks the shit out of interest rates, suddenly the value of those bonds goes way the hell down (anyone buying a new bond would get 5% and so the price of the old bonds yielding 3% drops in value until the point it has a yield equal to new bonds). The assets are worth less, let's just say they are worth $90. Now the shareholder equity goes to $0. This is when a bank is totally fucked. And oh by the way, the cost to bring new deposits in the door suddenly isn't 0.5%, now it's fucking 4.5% because that is what everyone can get on short term treasuries. That's where the entire banking system is right now. There is a run on banks because people want yield. Unfortunately, neither the banks nor the ever wise and knowing regulators modeled demand deposit interest rates going from 0.01% to 4.5% in under a year because this represents a massive outlier scenario that turns every bank upside down very quickly. In the past the deposits were very sticky, it would take a few years before banks had to up their deposit rates to match prevailing market rates on other fixed income investments so this shit was never a problem. Now where you can open an account elsewhere in 2 minutes and click 4 keys to do the transfer it is a giant fucking problem. In essence, every bank is probably bordering on insolvency right now and that is just due to diminution of the value of assets based on interest rates going up. We haven't even scratched the surface of banks going under due to credit risk or defaults. There is going to be a bankruptcy filed this week by Diamond Holdings, it won't be a top 50, but it will start scaring the piss out of banks who realized that they bankrolled a bunch of dogshit investments that are never going to pay off. At the end of the day you simply can't regulate away the risk of the Fed running an expansionary monetary policy for 15 years and then trying to turn it into a deflationary monetary policy. By definition there simply isn't enough money in circulation to repay the debts when this shift happens and no regulation can undo this immutable law of economics. Just like 2008 or Japan in 1991, the only thing you can do is "extend and pretend." You can avert bank failures with unlimited Fed backstops, but it takes a decade or more to work the shitpaper through the system. Maybe these banks need to stop making dogshit investments. They owned Treasuries and US federal agency backed mortgage securities. Those are the safest asset classes out there backed by the full faith and credit of the US government. This run was caused wholly by rates moving up so fast. The credit default risks won't become apparent for several more months.
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Post by Stan's Field on Mar 14, 2023 13:13:27 GMT -6
So it's all the other person's fault, per usual.
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Other
Sports Moderator
Interim Master of the Universe
Posts: 5,181
Tits or GTFO: GTFO
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Stonks
Mar 14, 2023 13:15:34 GMT -6
Post by Other on Mar 14, 2023 13:15:34 GMT -6
Maybe these banks need to stop making dogshit investments. They owned Treasuries and US federal agency backed mortgage securities. Those are the safest asset classes out there backed by the full faith and credit of the US government. This run was caused wholly by rates moving up so fast. The credit default risks won't become apparent for several more months. So they thought rates were going to stay that low forever? Seems like a bad business model.
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