Second Largest Bank Failure in U.S. History…

[ditcherman]

It doesn't matter. Data isn't going to change anyone's mind.

This tops the charts on the ‘least words used/most relevant thing ever said’ ratio.

 

[smokingman]

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.

U.S. regulators willing to share losses for sale of SVB, Signature Bank - FT By Reuters

U.S. regulators willing to share losses for sale of SVB, Signature Bank - FT

www.investing.com

SVB was supposed to be sold by today. No one stepped up with Citizens bank offer considered to low. So not they are breaking it up and selling it(to approved bidders) in pieces,with bids due by Friday 3/24/2023.

FDIC Prepares To Break Up Silicon Valley Bank, Report Says | ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

UBS offer for Credit Suisse failed today. The 9 billion(USD terms)backing by the government was not considered enough by UBS, as the liabilities are hundreds of times more. The Swiss government is now considering nationalizing it(or put another way turning it communist/socialist).

UBS To Buy CS For $3 Billion As AT1 Bonds Get Wiped Out In Record Bail-In; Swiss Govt Grants CHF9BN Guarantee; SNB Offers $100 Billion Liquidity Backstop | ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

 

[smokingman]

I suddenly realize why the lyrics “it’s the end of the world and we know it, and I feel fine” work.

It’s because we have memes.

All the way back in 1994 the US was paying 30% of all federal revenue just on the interest in debt. That amount declined in part due to lower interest rates, but also huge increases in the federal taxes, increasing government income.

Currently it is around 13% of total federal income to pay just the interest on our debt(to actually pay down any of the 33.5T in debt we would need to spend less than we bring in...wrote that bit for anyone in Washington who can read).

That is going to change. Interest rates have risen and so has the debt. The federal government also has much more debt than in 1994(close to 5 trillion in 1994,now 33.5T). In short the 30% we were paying in 1994 is going to look cheap soon.

Biden's handlers know this, so in their short sightedness the choose to go ahead and start raising revenue.IE increasing taxes. Most understand raising taxes at times of economic difficulty only speed up the decline in revenue, not increase it even over the medium term. Sure, in the short term of a couple years it may increase revenue, but at a cost to future revenue.

The world is changing and quickly. It is not a matter of if we lose reserve currency status,but how fast it happens. Portugal was the reserve currency from 1450-1530. Spain was the reserve currency from 1530-1640. The Netherlands from 1640-1720. France was the reserve currency from 1720-1815. Great Britain was the reserve currency from 1815-1920. The US is the current reserve currency since 1921. There is a battle that has been going on for some time to unseat that status, one that has happened many times through history. Look at that list of countries. Notice anything? They are all western countries. It feels and looks like all of them are trying to destroy themselves and their cultures. I have a feeling the next one will not be western.
When it happens it will not be the end of the dollar, but almost overnight it will lose 20-30% of the value it had.

All that was to make a point. The point is our banks, mismanaged and poorly capitalized in an effort to squeeze every possible bit of profit out of deposits. They did not prepare and look ahead as 80% of all USD were created in just 3 years, on the contrary they sought more profits. They achieved short term profit gains and some became incredibly wealthy. That time has ended,and now they will pay a price as will those who have deposits with them. Some will talk about the FDIC,and how your money is insured. Hate to break it to everyone but the FDIC has no funds the US Treasury does not give it at this point(already posted just the last few weeks for transfers from the treasury).

Now, how much money does the US Treasury currently have, have you forgotten we are already close to the debt limit(and the billions sent to failed liberal banks got us closer)? What happens when banks fail,and the US Treasury can not fund the FDIC? Who loses? Depositors. The Fed will bail them out you say? Well that corporation that can create money out of nothing itself has a negative balance of around 2 trillion right now. It also exists to keep its only real asset alive,dollars. Bailing out depositors would hurt that goal. So I would not count on it.

It is Sunday 3/19/2023
I fear for most American's because I do not think many are financially or mentally prepared for what is coming. That usually leads to screaming for anything or anyone to fix it for them. It is likely how our Republic will end, but some will fight for that republic understanding how we got here. Will there be enough of us, probably a question for future history books?

​

 

[Mij]

All the way back in 1994 the US was paying 30% of all federal revenue just on the interest in debt. That amount declined in part due to lower interest rates, but also huge increases in the federal taxes, increasing government income.

Currently it is around 13% of total federal income to pay just the interest on our debt(to actually pay down any of the 33.5T in debt we would need to spend less than we bring in...wrote that bit for anyone in Washington who can read).

That is going to change. Interest rates have risen and so has the debt. The federal government also has much more debt than in 1994(close to 5 trillion in 1994,now 33.5T). In short the 30% we were paying in 1994 is going to look cheap soon.

Biden's handlers know this, so in their short sightedness the choose to go ahead and start raising revenue.IE increasing taxes. Most understand raising taxes at times of economic difficulty only speed up the decline in revenue, not increase it even over the medium term. Sure, in the short term of a couple years it may increase revenue, but at a cost to future revenue.

The world is changing and quickly. It is not a matter of if we lose reserve currency status,but how fast it happens. Portugal was the reserve currency from 1450-1530. Spain was the reserve currency from 1530-1640. The Netherlands from 1640-1720. France was the reserve currency from 1720-1815. Great Britain was the reserve currency from 1815-1920. The US is the current reserve currency since 1921. There is a battle that has been going on for some time to unseat that status, one that has happened many times through history. Look at that list of countries. Notice anything? They are all western countries. It feels and looks like all of them are trying to destroy themselves and their cultures. I have a feeling the next one will not be western.
When it happens it will not be the end of the dollar, but almost overnight it will lose 20-30% of the value it had.

All that was to make a point. The point is our banks, mismanaged and poorly capitalized in an effort to squeeze every possible bit of profit out of deposits. They did not prepare and look ahead as 80% of all USD were created in just 3 years, on the contrary they sought more profits. They achieved short term profit gains and some became incredibly wealthy. That time has ended,and now they will pay a price as will those who have deposits with them. Some will talk about the FDIC,and how your money is insured. Hate to break it to everyone but the FDIC has no funds the US Treasury does not give it at this point(already posted just the last few weeks for transfers from the treasury).

Now, how much money does the US Treasury currently have, have you forgotten we are already close to the debt limit(and the billions sent to failed liberal banks got us closer)? What happens when banks fail,and the US Treasury can not fund the FDIC? Who loses? Depositors. The Fed will bail them out you say? Well that corporation that can create money out of nothing itself has a negative balance of around 2 trillion right now. It also exists to keep its only real asset alive,dollars. Bailing out depositors would hurt that goal. So I would not count on it.

It is Sunday 3/19/2023
I fear for most American's because I do not think many are financially or mentally prepared for what is coming. That usually leads to screaming for anything or anyone to fix it for them. It is likely how our Republic will end,but some will fight for that republic understanding how we got here.

​

I have said it before on INGO, never in the history of the world has a nation survived that had a fiat currency. And this is the only time in history that every govt. currently has a fiat currency.

This is a giant house of cards, “It can’t last”. We, The American people need to use the power of the ballot box to force our elected officials to return to a system based on something with entrincic value. Don’t care what that medium is, gold, silver, salt, land, fish, sand. Don’t care, somthing.

Rant over.

 

[smokingman]

The Swiss just imploded their currency. All swiss frank bonds are crashing HARD.
What did they do? 100 billion swiss frank guarantee for UBS to buy CS for 3 billion.
A giant sucking sound can be heard from here as 275 Billion (in US dollar terms)was just wiped out as part of the deal. Not to mention paying 3 billion for assets when the Swiss government is guaranteeing them for 9 billion(in addition to the 100 billion in liquidity). It is only something that could happen in clown world.

It puts the losses magnitudes above the Greek or then Spanish bank losses(that almost ended the Euro, without US help and backstopping from the IMF). This time not only are the terms a bailin(depositor funds wiped out,and shareholders of CS almost totally wiped out),but then a portion of that bailin(100 billion) is guaranteed by the Swiss national bank.


We finally have a deal, and what was at first a CHF1 BN acquisition priceof Credit Suisse by UBS, which then rose to CHF 2 BN, has now cranked up one final time to CHF 3BN (US$3.25 billion), or 0.76 per share, specifically shareholders of Credit Suisse will receive 1 share in UBS for 22.48 shares in Credit Suisse. As part of the deal, the Swiss National Bank is offering a 100 billion-franc liquidity assistance to UBS while the government is granting a 9 billion-franc guarantee for potential losses from assets UBS is taking over, i.e., this is a taxpayer-backed bailout.

This wipe out, pardon, bail-in is the biggest loss yet for Europe’s $275 billion AT1 market, far eclipsing the approximately €1.35 billion loss suffered by junior bondholders of Spanish lender Banco Popular SA back in 2017, when it was absorbed by Banco Santander SA to avoid a collapse.

No shareholder vote either.

Swiss Government.
In consideration of the unique circumstances affecting the Swiss economy as a whole, the Swiss Federal Council is issuing an emergency ordinance (Notverordnung) tailored to this particular transaction. Most importantly, the merger will be implemented without the otherwise necessary approval of the shareholders of UBS and Credit Suisse to enhance deal certainty.

UBS To Buy CS For $3 Billion As AT1 Bonds Get Wiped Out In Record Bail-In; Swiss Govt Grants CHF9BN Guarantee; SNB Offers $100 Billion Liquidity Backstop | ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

Expect some chaos Monday,especially for banks and firms that have any connection to CS. When futures open tonight I will be looking at firms like Morgan Stanley and US banks. Here is a list of names to observe if you are into blood sports.

Credit Suisse Group AG (CS) Stock Major Holders - Yahoo Finance

Find out the direct holders, institutional holders and mutual fund holders for Credit Suisse Group AG (CS).

finance.yahoo.com

Reminder from 4 days ago.

Bloomberg - Are you a robot?

 

[jamil]

I suddenly realize why the lyrics “it’s the end of the world and we know it, and I feel fine” work.

It’s because we have memes.

Might as well mock reality.

 

[Mij]

The Swiss just imploded their currency. All swiss frank bonds are crashing HARD.
What did they do? 100 billion swiss frank guarantee for UBS to buy CS for 3 billion.
A giant sucking sound can be heard from here as 275 Billion (in US dollar terms)was just wiped out as part of the deal. Not to mention paying 3 billion for assets when the Swiss government is guaranteeing them for 9 billion. It is only something that could happen in clown world.

It puts the losses magnitudes above the Greek or then Spanish bank losses(that almost ended the Euro, without US help and backstopping from the IMF). This time not only are the terms a bailin(depositor funds wiped out),but then a portion of that bailin(100 billion) is guaranteed by the Swiss national bank.


We finally have a deal, and what was at first a CHF1 BN acquisition priceof Credit Suisse by UBS, which then rose to CHF 2 BN, has now cranked up one final time to CHF 3BN (US$3.25 billion), or 0.76 per share, specifically shareholders of Credit Suisse will receive 1 share in UBS for 22.48 shares in Credit Suisse. As part of the deal, the Swiss National Bank is offering a 100 billion-franc liquidity assistance to UBS while the government is granting a 9 billion-franc guarantee for potential losses from assets UBS is taking over, i.e., this is a taxpayer-backed bailout.

This wipe out, pardon, bail-in is the biggest loss yet for Europe’s $275 billion AT1 market, far eclipsing the approximately €1.35 billion loss suffered by junior bondholders of Spanish lender Banco Popular SA back in 2017, when it was absorbed by Banco Santander SA to avoid a collapse.

UBS To Buy CS For $3 Billion As AT1 Bonds Get Wiped Out In Record Bail-In; Swiss Govt Grants CHF9BN Guarantee; SNB Offers $100 Billion Liquidity Backstop | ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

Expect some chaos Monday,especially for banks and firms that have any connection to CS. When futures open tonight I will be looking at firms like Morgan Stanley and US banks. Here is a list of names to observe if you are into blood sports.

Credit Suisse Group AG (CS) Stock Major Holders - Yahoo Finance

Find out the direct holders, institutional holders and mutual fund holders for Credit Suisse Group AG (CS).

finance.yahoo.com

Reminder from 4 days ago.

Bloomberg - Are you a robot?

I remember when pig’s (Port. Italy, Greece,) went down. This could be similar only on a larger scale.

Like I said, a giant house of cards. Who wants to be standing without a chair when the music stops.

 

[ditcherman]

Might as well mock reality.

Surprised to see you here.
recent-change-to-ingo-rules.533638

 

[thompal]

Not really. Anything that fluctuates as wildly as these digital tulip bulbs will never be a standard currency.

Correct. Because people are using them as investments, like stocks, instead of what they were supposed to be: a currency.

 

[NyleRN]

In this thread I respond with memes

 

[smokingman]

In other news.

First Republic Bank Shares Crash To New Record Low, JPM's Dimon Reportedly Leading Another Rescue Effort | ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

Something else is going on in the EU.
Seems the Swiss up ended the order of default. AT1 is supposed to be above share holders in the event of a default(equivalent to US Tier 1 capitol),but in the merger they wiped out AT1 and gave precedence to share holders. This has made all holders of AT1 debt fear they could be next. That has destabilized bonds. Holders of AT1 are selling, leading to even more banks to fail to meet capitol requirements. It is spreading fast.

"This Just Makes No Sense": European Regulators Rush To Calm AT1 Investors After Credit Suisse Wipeout Shock | ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

 

[rhamersley]

This tops the charts on the ‘least words used/most relevant thing ever said’ ratio.

From Jamil???

 

[asevans]

 

[DoggyDaddy]

View attachment 264303

This is actually pretty accurate. Bitcoin, isolated, unable to do anything.

 

[ditcherman]

This is actually pretty accurate. Bitcoin, isolated, unable to do anything.

I knew when he paired posted that it might not end well.
Actually, it’s not over yet, which is what he is counting on.
I’m not betting against it.

 

[Nugget]

View attachment 264303

Wait, so a Somali pirate stole the Titanic's bitcoin, and now they have absolutely no recourse and no way to recover it? Is that the lesson here?

 

[DoggyDaddy]

I knew when he paired that it might not end well.
Actually, it’s not over yet, which is what he is counting on.
I’m not betting against it.

I would sooner bet on winning the Powerball than bet on Bitcoin. Maybe I'm wrong. Time will tell. I just know that a major grid failure or an EMP attack won't affect my gold and silver at all.

 

[DoggyDaddy]

I knew when he paired that it might not end well.
Actually, it’s not over yet, which is what he is counting on.
I’m not betting against it.

When you think about it, the USD is already a digital currency. We already trade in it digitally every time we use a credit or debit card, or use wire transfers, ACH deposits, PayPal, etc..

 

[Mij]

So if I’m getting the metaphor, the world’s financial ship is going down and in the ocean of debt left behind, your little life boat of computer code with no provision is going to save you. Being backed by nothing tangible.

 

[bobzilla]

You know the more someone tries to brow beat me into accepting their opinion as fact the harder I tend to push back.