Tex117 said:

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LMCane said:

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Ag87H2O said:

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Dies Irae said:

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The market is pricing in a Fed rate cut. The 2 year t-bill is .72% below the Fed rate, which means its likely going down.

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So now they have essentially backed themselves into a corner and pouring gasoline on a fire is their best option.

They are normalizing inflation/stagflation. Welcome back to the late70s - early 80s. Eventually you have to take the medicine, it tastes like crap, and it doesn't get better with age.

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I'm guessing this is why the markets have whipsawed 600 points over the course of 3 hours

the larger market is licking their chops at JPow finally being beaten into submission and "pivoting" to lower rates.

ZIRP days from now until infinity!

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That's what they think will happen. Maybe they just think it wont be a half a point raise.

But he will raise a quarter point (and maybe even the half point depending on the consumer data this week). Its also staying there.

Powell is no where close to being beat into submission.

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wow if that happens the markets may really tank

because clearly all the metrics are now showing the 'street' expects there NOT to be many more rate increases but instead a lowering of rates

if JPowell keeps moving that ship right into the minefield..

watch out below

and just looking at this through a political lens- high inflation would be much preferable to Biden

than numerous bank collapses and the entire economy going down.

scroll up slightly to see how other regional banks are faring at the moment. or perhaps take a glance at how many bank stocks were halted today.

ac04 said:

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scroll up slightly to see how other regional banks are faring at the moment. or perhaps take a glance at how many bank stocks were halted today.

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This is a precautionary measure due to the perceived chance of a bank run. This is hedging a self fulfilling prophecy from coming true.

It is not an indicator of the health of the system.

is this press release from yesterday an indicator of the health of the system? https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312a.htm

Quote:

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To support American businesses and households, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors. This action will bolster the capacity of the banking system to safeguard deposits and ensure the ongoing provision of money and credit to the economy.

The Federal Reserve is prepared to address any liquidity pressures that may arise.

The additional funding will be made available through the creation of a new Bank Term Funding Program (BTFP), offering loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging U.S. Treasuries, agency debt and mortgage-backed securities, and other qualifying assets as collateral. These assets will be valued at par. The BTFP will be an additional source of liquidity against high-quality securities, eliminating an institution's need to quickly sell those securities in times of stress.

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let me know if you need me to explain the implications of the bolded portion.

ac04 said:

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is this press release from yesterday an indicator of the health of the system? https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312a.htm

Quote:

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To support American businesses and households, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors. This action will bolster the capacity of the banking system to safeguard deposits and ensure the ongoing provision of money and credit to the economy.

The Federal Reserve is prepared to address any liquidity pressures that may arise.

The additional funding will be made available through the creation of a new Bank Term Funding Program (BTFP), offering loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging U.S. Treasuries, agency debt and mortgage-backed securities, and other qualifying assets as collateral. These assets will be valued at par. The BTFP will be an additional source of liquidity against high-quality securities, eliminating an institution's need to quickly sell those securities in times of stress.

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let me know if you need me to explain the implications of the bolded portion.

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Will do

LMCane said:

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Tex117 said:

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LMCane said:

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Ag87H2O said:

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Dies Irae said:

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The market is pricing in a Fed rate cut. The 2 year t-bill is .72% below the Fed rate, which means its likely going down.

---

So now they have essentially backed themselves into a corner and pouring gasoline on a fire is their best option.

They are normalizing inflation/stagflation. Welcome back to the late70s - early 80s. Eventually you have to take the medicine, it tastes like crap, and it doesn't get better with age.

---

I'm guessing this is why the markets have whipsawed 600 points over the course of 3 hours

the larger market is licking their chops at JPow finally being beaten into submission and "pivoting" to lower rates.

ZIRP days from now until infinity!

---

That's what they think will happen. Maybe they just think it wont be a half a point raise.

But he will raise a quarter point (and maybe even the half point depending on the consumer data this week). Its also staying there.

Powell is no where close to being beat into submission.

---

wow if that happens the markets may really tank

because clearly all the metrics are now showing the 'street' expects there NOT to be many more rate increases but instead a lowering of rates

if JPowell keeps moving that ship right into the minefield..

watch out below

and just looking at this through a political lens- high inflation would be much preferable to Biden

than numerous bank collapses and the entire economy going down.

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It really depends on how the Fed truly views SVB. If they view it as a tech-heavy specific bank...I think Powell keeps going. This is what he wants! Taking out the froth...especially from tech which enjoyed absolutely silly amounts of free money over the last decase. If they think this is truly more systemic, they slow down.

The Street just wants free money again. They will throw a hissy fit to get it.

The FDIC told lawmakers that they got a bid in the auction for SVB over the weekend and declined it, @SenatorHagerty says on Bloomberg Radio

— Saleha Mohsin (@SalehaMohsin) March 13, 2023

Best to leave those who pray to their ChiCom overlords via their username alone.

Probably the UAE buyer that was rumored on Twitter.

cone said:

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The FDIC told lawmakers that they got a bid in the auction for SVB over the weekend and declined it, @SenatorHagerty says on Bloomberg Radio

— Saleha Mohsin (@SalehaMohsin) March 13, 2023

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Probably one of those house companies that hound you about buying your house and then if you actually talk to them they offer to buy it for 50% of its worth.

DallasAg 94 said:

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Co-worker in Europe told me that a British Bank (i think) bought the British assets of SVB for one British Pound.

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I believe all of your comment, but for the SVB part is true. It was for purchase of another bank for 1 pound.

LMCane said:

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cone said:

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LOL I actually watched this last week on youtube! it's not a very good movie so I turned it off shortly before the ending

the problem with that movie is that no real human beings talk and act that way- they are all portrayed as stereotypes of what a bank employee would act like.

they literally spoke like robots and hollywood actors playing brokers

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How did you expect them to portray billionaires and their millionaire minions reacting to a complete meltdown of their bank that threatened to implode the entire global monetary system?

The Big Short is more entertaining and a better big picture view of what actually occurred in 2008.

The simplest way to explain it is "It's the derivatives, stupid".

Derivatives are the financial instrument that will bring it all down. Way too many over leveraged and insanely complicated contracts between financial institutions who don't really understand the risk or implications if they blow up......Bets on top of bets, on top of bets, on top of bets all hoping market conditions stay the same until maturity.

The fed and govt needs to figure this out asap. Smaller regional banks could be in real danger here with nervous depositors

Big banks, JPM and GS, should be salivating rn

So a win-win for mega-banks as someone pointed out a couple days ago.

I'm going to be shocked if Crypto is not revealed to be a factor in the lack of funds before it is all over.

Here's the plan:

On Friday, the FDIC – the government regulator in charge – took control of Silicon Valley Bank's assets.

Over the weekend, it did the same with Signature Bank.

Here's what comes next:

— President Biden (@POTUS) March 13, 2023

The management of both these banks will be fired.

If a bank is taken over by the FDIC, the people running that bank shouldn’t work there anymore.

— President Biden (@POTUS) March 13, 2023

We must get a full accounting of what happened and why so those responsible can be held accountable.

In my Administration, no one is above the law.

— President Biden (@POTUS) March 13, 2023

I will ask Congress and banking regulators to strengthen the rules for banks to make it less likely that this kind of bank failure happens again.

We must protect American jobs and small businesses.

— President Biden (@POTUS) March 13, 2023

https://t.co/0j0GchgMRc

— Watcher.Guru (@WatcherGuru) March 13, 2023

Been saying it for a while and I’m doubling down.

The Fed narrative change is coming.

Soon “5% inflation is ideal in the new economy and we have it under control”
(Pivots back to QE and Brrr)@livenowfox @FoxNews pic.twitter.com/nv7pCpEptS

— Robert J Salvador (@RobertJSalvador) January 12, 2023

Frost Bank in Austin has to be in trouble.

japantiger said:

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Frost Bank in Austin has to be in trouble.

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Why?

cgh1999 said:

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japantiger said:

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Frost Bank in Austin has to be in trouble.

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Why?

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Second time I have had Frost mentioned today. I have an idle credit facility with them, should I draw it down?

Move cash away from them?

correct, I thought the Big Short was a much better movie.

fka ftc said:

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cgh1999 said:

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japantiger said:

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Frost Bank in Austin has to be in trouble.

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Why?

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Second time I have had Frost mentioned today. I have an idle credit facility with them, should I draw it down?

Move cash away from them?

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why wouldn't you?

which option could cause you more harm?

moving your money to a different bank,

or waiting to see if the bank you have now enters financial distress?

fka ftc said:

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cgh1999 said:

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japantiger said:

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Frost Bank in Austin has to be in trouble.

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Why?

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Second time I have had Frost mentioned today. I have an idle credit facility with them, should I draw it down?

Move cash away from them?

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I don't have insider knowledge, but IMO Frost is a great bank. There should be a lot of banks that fail before that one. If that happens, your money is worthless anyway.

More importantly, the FDIC is protecting deposits. No one should need to move banks.

Have to save democrat banks, and democrT depositors. Use republican money.

LMCane said:

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fka ftc said:

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cgh1999 said:

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japantiger said:

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Frost Bank in Austin has to be in trouble.

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Why?

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Second time I have had Frost mentioned today. I have an idle credit facility with them, should I draw it down?

Move cash away from them?

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why wouldn't you?

which option could cause you more harm?

moving your money to a different bank,

or waiting to see if the bank you have now enters financial distress?

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If you're concerned about a bank, hopefully you have done some research and have reasons for the concern. Bad investment mix? Over leveraged loan portfolio? Etc.

Not some internet message board telling you to move money just in case.

LMCane said:

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fka ftc said:

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cgh1999 said:

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japantiger said:

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Frost Bank in Austin has to be in trouble.

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Why?

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Second time I have had Frost mentioned today. I have an idle credit facility with them, should I draw it down?

Move cash away from them?

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why wouldn't you?

which option could cause you more harm?

moving your money to a different bank,

or waiting to see if the bank you have now enters financial distress?

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I should call them up just to **** with them. Its an 8 figure uncollateralized line. My financial adviser may get mad when he has to park it in 20+ different banks to be safe.

As another poster pointed out, Frost is a pretty reliable bank. Unless they have specific exposure related to this current crisis, then I would expect them to actually benefit from the current situation.

will25u said:

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https://t.co/0j0GchgMRc

— Watcher.Guru (@WatcherGuru) March 13, 2023

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IANAL
So, is it possible a court could rule the stock investors get paid before any of the people/companies/corporations that deposited money in the bank gets paid.

I kinda wonder who owned stock in this bank, Pelosi, Swallwell, bag of Schiff, Hunter, etcetera etcetera etcetera?

This SOB had to go poop and pump up the dementia drugs.

And then some idiot thanks him.

Seriously, **** Joe Biden.

This 👏🏿 is 👏🏿 leadership👏🏿 pic.twitter.com/TR20pbyCN8

— Dr. Jebra Faushay (@JebraFaushay) March 13, 2023

annie88 said:

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This SOB had to go poop and pump up the dementia drugs.

And then some idiot thanks him.

Seriously, **** Joe Biden.

This 👏🏿 is 👏🏿 leadership👏🏿 pic.twitter.com/TR20pbyCN8

— Dr. Jebra Faushay (@JebraFaushay) March 13, 2023

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Could that be a sarcastic tweet, considering the name Dr. Jebra Faushay?
I honestly don't know.

You realize by that point the dementia drugs had been administered just prior and the bowel movement occurred at the podium...

richardag said:

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annie88 said:

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This SOB had to go poop and pump up the dementia drugs.

And then some idiot thanks him.

Seriously, **** Joe Biden.

This 👏🏿 is 👏🏿 leadership👏🏿 pic.twitter.com/TR20pbyCN8

— Dr. Jebra Faushay (@JebraFaushay) March 13, 2023

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Could that be a sarcastic tweet, considering the name Dr. Jebra Faushay?
I honestly don't know.

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I'm sure it is sarcastic, I was talking about Biden and the reporter that thanked him for walking away without saying *****