Second Largest Bank Failure in U.S. History…

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  • ShimmeringTrees

    Amish Jack Wagon
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    I was reading a book by Goeorge Akerholf, Animal Spirits, I believe 2000. Akerholf is the husband of Janet Yellen. Akerholf and a fellow colleague did a study basically on socio economics. In it, they described women in men's roles, men in women's. People of color in the work environment. In my words, less than smart people in the work environment. And the likes.

    In my words of opinion, the study showed that when the work force is manipulated, see previous paragraph, it effects a positive trajectory of capitalism.

    Fast forward 23 years and all those things are being played out in our day to day lives in the work force. Thus driving every industry down.

    Sort off topic, but it's all ironic. In regards to the banks collapsing, I've been looking for some articles, books, etc. that's relates to said studies.
     

    bwframe

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    smokingman

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    What do you think the outcome is going to be?
    Same as it was before. A whitelist of potential buyers(democrat donors) with terms favorable to them. With the FDIC and US taxpayer used to make it profitable.

    Do you think it will be any different? It would take every republican(in the house and senate) working to stop it. I do not believe they will.
     

    ShimmeringTrees

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    Leadeye

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    Al least now people are learning which banks are never going to fail, Oprah and the M&H show can pitch endorsements of banks for some additional cash. Don't want to go broke? Follow the money that's woke. The big guy is earning his 10%.;)
     

    smokingman

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    How about starting the bail out, with the top officers of the bank.
    Take their accounts and stocks, and sell their houses.
    What about the Chinese depositors?

    The article does not get into it,but is short she said over and over it was not a bailout(at todays congressional hearing),but ignored or redirected when asked questions about the 40 billion from the US treasury or about were the billions were coming from.
     

    BigRed

    Banned More Than You
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    What about the Chinese depositors?

    The article does not get into it,but is short she said over and over it was not a bailout(at todays congressional hearing),but ignored or redirected when asked questions about the 40 billion from the US treasury or about were the billions were coming from.
    **** the central state.
     

    smokingman

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    2008 was the worst financial event in modern history?
    I mean banks had to use the FED discount window(with the negative stigma of meaning they were failing)at unheard of and unthinkable levels in 2008.

    In steps March of 2023.
    discount window.jpg


    But yes creating over 80% of all USD ever created in just 3 years MIGHT have caused a few issues,and they are creating hundreds of billions more almost daily.


    Still over 2 trillion in over night lending to banks at the REPO window as well.

     
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    Ark

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    2008 was the worst financial event in modern history?
    I mean banks had to use the FED discount window(with the negative stigma of meaning they were failing)at unheard of and unthinkable levels in 2008.

    In steps March of 2023.
    View attachment 263122


    But yes creating over 80% of all USD ever created in just 3 years MIGHT have caused a few issues,and they are creating hundreds of billions more almost daily.


    Still over 2 trillion in over night lending to banks at the REPO window as well.

    It's so convenient that we can now do massive bank bailouts at taxpayer expense via the inflation tax without even the inconvenience of taking votes in Congress.
     

    smokingman

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    It's so convenient that we can now do massive bank bailouts at taxpayer expense via the inflation tax without even the inconvenience of taking votes in Congress.
    They need way more to actually stay solvent. I do not think most understand just how bad bank balance sheets are(banks,corporations,consumers,federal and state gov),and why they get worse every day the FED rate is above zero.
    They had a decade and a half to feast on low interest loans,reits,stocks, and every financial instrument they could create to make a few cents on billions in debt(some of those put MBS to shame in how poorly they are doing currently).
    Now rates have gone up,and borrowing cost more. The gravy train is over(for now)and you have people in business who have never seen a real crisis or downturn much less rampant inflation and stagflation. For now,they seem to be avoiding the lesson but I do not expect that to last to much longer.

    About the only thing being lifted by higher rates is social security. It can only buy US Treasuries,and well they actually pay back something now. The do not face the same thing banks do and hold them to maturity, so they will never experince losses having to sell them. The higher rates go the better off SS.
     
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    smokingman

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    Same as it was before. A whitelist of potential buyers(democrat donors) with terms favorable to them. With the FDIC and US taxpayer used to make it profitable.

    Do you think it will be any different? It would take every republican(in the house and senate) working to stop it. I do not believe they will.
    I was correct. Taxpayers will be taking the losses(they say regulators but it means federal funds,ie taxpayers),and those prefered approved companies who are buying the assets get profitable deals.

     

    BigRed

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    "A well-known behavioral reality of older people is their shortened time horizons. Look who’s making choices to engage in short-term, can-kicking exercises like forgiving student loans or guaranteeing bank deposits regardless of size—for that’s what last weekend’s sweeping $19 trillion implicit bank guarantee was, a short-term choice aimed at helping Mr. Biden’s Monday go better."


    obiden can go straight to Hell
     
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    smokingman

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    They need way more to actually stay solvent. I do not think most understand just how bad bank balance sheets are(banks,corporations,consumers,federal and state gov),and why they get worse every day the FED rate is above zero.
    They had a decade and a half to feast on low interest loans,reits,stocks, and every financial instrument they could create to make a few cents on billions in debt(some of those put MBS to shame in how poorly they are doing currently).
    Now rates have gone up,and borrowing cost more. The gravy train is over(for now)and you have people in business who have never seen a real crisis or downturn much less rampant inflation and stagflation. For now,they seem to be avoiding the lesson but I do not expect that to last to much longer.

    About the only thing being lifted by higher rates is social security. It can only buy US Treasuries,and well they actually pay back something now. The do not face the same thing banks do and hold them to maturity, so they will never experince losses having to sell them. The higher rates go the better off SS.
    First Republic bank Stock tanks 32% after the FED buys their treasuries,JPMorgan injects billions into them,and the Treasury put together a nice bailout deal. It is almost as if reality just will not go away for the woke bank. Politics aside,many banks not even on the radar yet are in much worse shape. I do not think any bank should be able to hold anything off their balance sheet,and at most US banks that is nearly 60% of assets. SVB only had 49% off its balance sheet,how did that work out? First Republic will not survive unless it finds a buyer(doubtful).

    This "crisis" started long ago,I do not see a way it gets better anytime soon. Legally the FED and Treasury can not bailout everyone like 2008. Sure they found a loop hole to bailout some prefered left leaning banks,but the rest..... I think this gets ugly.


    "The Fed is broke. The Fed's balance sheet is negative $1.1 trillion. There's nothing they can do to fight any problems except for printing money.
    They have nothing left. The Fed used to send money to Treasury. Now Treasury sends money to the Fed.
    We're at this point in time where we don't have any road left to kick the can on our mismanagement of finances and monetary policy."

    The realestate bubble it popping as well. Commercial is actually worse than houses,that only happened before as factories shut in the 1970s and the 1980s when we shipped jobs overseas.
    Reits.jpg

    Why is commercial realestate a HUGE problem? More than 80% of commercial realestate is funded by small and medium sized banks.
     
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    Leadeye

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    How long before this is like NY in 1976 when no one would buy the bonds regardless of the interest rate offered?
     
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