I’m glad the fact checkers were on top of this. Dodged a real bullet here–people might have ended up totally misinformed!
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It’s bothering me that they used a sideways 8 instead of ∞.
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Needs based obviously means black life.
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The bank’s demise had come as just as much of a surprise to the White House as it did to the public, triggering a weekend sprint to contain the fallout that spanned several agencies and all hours of the day and night.
The result, announced just minutes before financial markets in Asia reopened, was sweeping: The federal government would provide SVB’s depositors with access to all their funds, effectively averting painful financial uncertainty — and the threat of heavy losses — for thousands of venture-backed startups. Signature Bank, which had followed SVB into insolvency, would receive the same guarantee.
Even more critically, the Federal Reserve would provide a massive lifeline to the nation’s banks: It would singlehandedly give all other similar lenders access to funds designed to keep them afloat and quell the panic brewing across the country.
Are regular lot sizes still 100 for stocks above $1000? Would about brk.a?
https://twitter.com/nicoleperlroth/status/1636759507123699712
thread
https://twitter.com/nicoleperlroth/status/1636762470319812610
https://twitter.com/nicoleperlroth/status/1636769324882067457
Somehow I missed this the first time around.
Just found out zero hedge blocks me on twitter lol.
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Hard times for regional banks like Credit Suisse
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so all these banks have been trouble this whole time but keeping it quiet until SVB fell as the first domino?
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Only to the extent that any bank could theoretically experience a run. SVB wasn’t being reckless. It’s all herd mentality.
Credit Suisse has been reporting big losses for a while now right? Maybe not big enough for people to get worried in the world of megabank finance but it might point to a bigger issue that they’re most likely running by fucking idiots
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They’ve been a laughingstock for my entire adult life. The only thing Swiss banks seem to actually do without losing money is money laundering. UBS makes money in wealth management, but that’s basically an extension of the money laundering operation.
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credit suisse and DB are the two most corrupt and inept banks there are.
How the fuck do you lose money running a bank? You borrow at X% and lend at X+5%
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Well there’s two things.
- There are legit complications to running a bank. Even is it’s absolute simplest, purest form (like a bank that just takes deposits and just issues mortgages), the money you loan at X + 5% might not get paid back. The guys in suits call this credit risk. And banks need to employ staff, so part of your 5% is shaved off right there in operating costs.
- Perhaps more importantly, a successful bank attracts hubris in it’s leaders and they start to invest their capital in “diversifying” their services. This is probably where most banks actually go wrong, being profitable but boring is seen as sinful in public markets. The whole process of having quarterly calls with analysts and monthly meetings with Boards provokes C-suite decision makers to do dumb things because they’re scared to go in front of the Board and say “this enterprise makes money hand over fist whether I show up or not, you could appoint a monkey to run this thing instead of paying me $50 million a year”.
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We could stop wage inflation by simply providing child care to working parents. But no. Jack rates to 7% instead!
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Maybe a head tax on children would help.
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Do we need to stop wage inflation?
It depends on how it would affect unemployment and how companies would adjust and how those adjustments would affect others. Min wage generally doesn’t go back down.
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