/biz/ - Business & Finance

>>54070291
incel doomer chud bros, NOT LIKE THIS :((((
the world was supposed to end tomorrow :(((
I just withdrew all my money

FUCK THIS COUNTRYYYYY

So this means everything will be poomping?

Pivot and infinite growth forever?

>One more year

based!

>>54070335
What you want them to do? They only got a few options. Soft default is the least painful one.

>>54070322
lol/lmao

>>54070291
BASED BASED BASED
FUNDS ARE SAFU!

>>54070291
That's not a bailout retard.

>>54070348
Yup. We made it bullbros

>>54070291
Yeah remember occupy wall street? They got the liberals to believe the opposite of that and now the liberals are pro-bankers.

What a wild turn of events if you ask me but hey kudos to the social engineers who pulled it off right

>>54070291
So what are your plans for tomorrow anon?

https://strawpoll.com/polls/kogjkJvwqZ6

>>54070419
Right, a bailout would have fixed terms and be set by congress. This is an unelected beaurocrat turning over the money printer directly to literally any bank director that wants it kek

>>54070335
Out of anything we waste money on (including giving the most corrupt country on earth a blank check for a war they provoked) I support bailing out banks.

>>54070419
you're right, it's even worse but retards don't notice that.

>>54070291
What a game!

>>54070291
Did u really need to spam the link 5 times? Tf is wrong with u

Happening CANCELED

>>54070322
of course they would bail out the big bois,
the bail-ins are for the plebes

>>54070419
for depositors it is, we do have some risk putting it in a bank. But the bank/company disappears it sounds like

More printing and more inflation.

>>54070291
cant read this since its not written in plain english. is this 1-1 matching deposits?

>>54070554

https://twitter.com/KobeissiLetter/status/1635044025454727168

>>54070508
>>54070419
Can one of you explain in real terms what exactly they are doing and what the implications of it are?

Are t hey just giving the banks short term loans at current interest rates to cover depositors?
Because that sounds like it would be even worse for these banks a year from now.

>>54070458
OHHHH SAYYYYY CAN YOU SEEEEEEE

>>54070291

>>54070576
I know you didn't ask me but normally a bailout saves the company. This sounds like the bank stock will be worthless on monday (bankrupt) but deposits will be paid by US government. As for people that the bank owed money to, not clear but sounds like no.

>>54070500
post nose

>>54070641
I'll take anyone who can speak normal words and not this legalese bs.

Sounds like the FDIC just did this to avoid paying out and causing panic, good for depositors I guess.

Genuine question, how bad could this be?
What's the downside? Never seen them pull this Hebrew nonsense before.

>>54070291
this means they won't pivot anytime soon

Why do we let them rape us of taxes and give it to failure woke trash?

>>54070291
((()))

>>54070669
I should have specified who I prefer to be bailed out. I am ok for individual depositers to get their accounts back. But fuck woke company. I hope their stock is worthless and whomever gave them loans eat shit. That is all that is being announced right now is that Joe Schmoe with $129 in his checking account is OK.

>>54070291
we need to nationalize the banking system

>>54070291
WHY ARE THERE NEVER ANY CONSEQUENCES FOR THEIR ACTIONS? GOD DAMN IT. This is very distressing news. I certainly hope that all those individuals responsible are in good health, and that no vigilantes try to harm them in any way.

>>54070576

I don't know about the interest rates, but yeah basically they're just giving banks loans at face value for low interest bonds that they can no longer use as collateral or sell on the open market for anywhere close to face value since anyone can go out and get T bills yielding 5% now. Makes any bonds companies bought just a year or two ago pretty worthless on the secondary market which is what killed SIVB.

Im a retard but isnt this like, not really a bailout?
Like, sure you will be made whole, but do you just get your fulldeposit now? Or is the money drip fed over time?

>>54070686
I have no idea how bad this is also. This seems different than the subprime thing in 07-09. But who knows, if feels like a nothing burger but thats what they said about Washington Mutual folding

>>54070729
Joe Schmoe was already getting taken care of. OP's link means that the companies banking there are going to be shielded as well, which means a bunch of trash SV startups that need to die for the country to heal are going to limp onward, further draining us.

>>54070291
rich jews getting a bailout from ZOG is guaranteed.

we live in hell.

>>54070787
This loan program reads as if bank managers can just ring the Federal Reserve at any time to print money for them.

>>54070641
This is basically it, yeah. Everyone else involved with the bank is going to get fucked. Per the statement

"Shareholders and certain unsecured debtholders will not be protected. Senior management has also been removed. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law."

So basically, investors in the bank and those that lent money to the bank are fucked to the benefit of depositors.

>le sky is le falling
bix always panics over nothing

>>54070820
shareholders will get ass raped. This is hardly a bailout

>saves the economy
APOLOGIZE

>>54070713

>>54070816
yeah I am blowing it with explaining my thoughts on bank bail outs.
Already a given: <$250,000 you are safe
Announced now: >$250,000 you are now safe also.

I am OK with JUST depositors getting money back. But hope pain for rest of people (stock holders and creditors)

>>54070773
>>54070802
Interesting, I guess we are in mostly uncharted waters now.
All other institutions are, in reality, probably just staring at the news feed just as much as we are to see what this does.

We'll just have to see what happens i guess.
Still, I hope they pin every person responsible at that bank right to the fucking wall.
I know they wont but they fucking should for once.

>>54070291
Yes we had one bailout
but what about second bailout?

>>54070291
>Free money for banks if they need liquidity
Uh, am I reading that right? What's stopping these banks from loading up on more debt, then just using the free money to pay out to depositors?

The best thing for the US is to bankrupt the retarded tech diversity startups, and in particular all companies associated with EVs including Tesla

Although Elon Musk might be a bit based, his automobiles are going to bankrupt the country even more than gas cars.

Rip out all the interstates from the cities and remove all parking minimums, and maybe our cities will no longer be basket case asphalt shitholes with abandoned buildings every 2 blocks

Jfc, how many more times can we kick the can down the road? What are we going to do in 2035 when houses in San Francisco are going for $15 million and the average person has a salary of $100 million /year as the founder of a eco friendly biotech startup that's aiming to disrupt the corn husking industry?

>>54070846
lolol lmao I thought we had an inflation problem

where the money come from?

>>54070576
Printer goes brr, inflation goes up, and still bank runs commence. US is going to die tomorrow.

>>54070348
We survived the great bear season

>>54070944
>What's stopping these banks from loading up on more debt, then just using the free money to pay out to depositors?
WHOA hold on there goy that is enough thinking for one day aren't you sleepy? Time for a nice nap.

>>54070369
>Gamble money away on Floydcoin
>Don't have to sell my truck since I have BTFP
Based

>>54070396
SPARE
THE
ROD

>>54070848
Wont this cause a chain reaction to the other investments in their portfolios. This could be the end of it all.

>>54070908
If I was put on CNBC right now and Cramer asked me for my prediction I would say this:
1) Silicon Valley VC for startups and crypto is dead for 5 years. So don't go asking for $100 in VC funding for your dating app
2) More tech bad news as those companies tighten up.
3) Maybe hold off on that $1 million 1000sq ft studio in Santa Clara for awhile.

Thats about it IMO

>>54070944
SVB wasn't "loaded up on debt", it was invested in long term bonds and couldn't sell them early at a good enough price to deal with a a major bank run.

>>54070944

It's not free money lmao, it's loans for up to a year that they have to pay back (with interest).

>>54070396
>>54070500
fuck you

>>54070762
What do you mean? The actual bankers, the management and their investors, got wiped out. Bailout is only for the depositors.

>>54070856

all the top shareholders sold everything a month

>>54070419
>loans against face-value junk bonds
>not a bailout
It's a bailout. Socialized losses, private profits. gg no re poorfags

>>54070944

>The financing 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.

Isn't this just QE? How are they going to tamp down on inflation while also offering QE?

>>54071074
It’s not getting paid back
Who the fuck is paying it back

>>54071084
>The actual bankers, the management and their investors, got wiped out
Bankers and executives got bonuses hours before it was taken over.

>>54070988
Money printer go brrrrr

>>54071090
The top 4 executives exedcuted 4 million in share sales last Friday, which had been planned some time ago. 90% of the money was just one of them. It's a nothingburger.

>>54071084
SVB got wiped out. JPow here is riding to the rescue of banks that haven't yet failed with more printed money.

If you give free money to banks this will broke investment companies. I'm right?

>>54071033
It could (read:will) cause investors to think twice about holding stocks in banks, especially smaller regional banks and banks with high exposure to interest rate sensitive markets, but it should shore up depositor confidence, which is the big issue here.

What happened with SVB and what probably happened with Signature was the fact that they couldn't sell the bonds they had bought when interest rates were low without realizing a loss. For SVB, this was revealed in their regulatory filings on Wednesday, and when startup founders and VCs got wind of it, they decided to completely fuck over the bank by mass withdrawing their money, meaning that to pay them back, the banks had to sell these low interest rate bonds and realize losses. If they had stability and could just see the bonds out to maturity, they wouldn't lose money (other than the opportunity cost of having that money caught up in lower-return assets.)

The fed's program is all about providing liquidity to banks by loaning them money with these shitty returns but low-risk bonds put up as collateral.

explain it for a retard(me) preferably in meme format
bonus points for haiku

>>54070291
Its crazy how normies can justify wasting their lifes wageslaving for pennies when the top dogs just print what they need.

>>54071123
I am curious about this. Somtimes executives get bonus in the form of stock options which would be worthless now. If you have the article send it since i want to masterbate to poor Punjabi woke CEO getting BTFO.

>>54071107

The bonds are still worth their face value plus interest upon maturity. And on the secondary market they'll be back to this value once interest rates are inevitably back down to a couple percent. Powell said they were going to raise rates until shit broke and now shit is breaking. Kiss that 50bps hike at the next FMOC meeting you were hoping for goodbye, they'll probably do one or two more 25bps hikes and then readjust their inflation target to 3%.

>>54070291
There's no fucking way this goes over this time. Russia and China will not take it. ARE YOU FUCKING SERIOUS? THE US FRAUD SYSTEM NEEDS TO COLLAPSE, IT'S THE ONLY WAY THE WORLD CAN HEAL.

>>54071039
The entire tech sector in general has needed to have its feet drug back down to the ground for a long time now, they are way overdue for a house cleaning.

Between Elon clearing out twitter, the layoffs everywhere else and now this maybe a lot of them will pull their heads out of their asses and stop torpedoing their own companies for the sake of some flavor of the month stupidity.

SVB may actually be a good thing long term, i can hope at least.
The rhetoric I've been hearing the past week or so seems like some of the most rational I've heard since before 2008. Almost like a bunch of people suddenly got snapped out of whatever fever dream they've been living in, we'll see if it lasts.

>>54071166
Your IQ is too high to be posting on /biz/.

>>54071121

People said the same thing about the TARP loans, but they all got paid back plus $100B in interest.

>>54071074
whew theres actually people this stupid out there, horrifying thought

>>54071218
Posting on /biz/ is not my day job

>>54071200
>we'll see if it lasts.

It wont. America is the most retarded, corrupt, mentally ill basket case country on Earth. I'm getting the fuck out of here and renouncing my citizenship as fast as I possibly can.

>>54071185
>Powell said they were going to raise rates until shit broke and now shit is breaking.
It's just herd-mentality Venture Capitalists fucking their own boutique bank. It's a big nothing.

>>54071240
Yes but you can't apply logic and data analysis to bunch of shrieking rubes and schizos.

>>54071120

QE for (((me))) but not for thee!

>>54071272
I can at least try to explain it to folks. Beyond the /pol/tards and the crypto cargo cultists, there are genuinely good people on this board. I'm a macro guy, so I typically stick to the threads about bond markets, housing, etc etc.

>>54071341
I appreciated the rundown, thanks.

>>54071120
It's not QE because the fed isn't adding these bonds to their balance sheet unless the banks default on the loan. (Which, if they do, is a far bigger problem than simply the loan.) It's a lifeline that will hopefully allow banks to actually hold the bonds until maturity, so they don't have to sell them for a loss.

>>54071398
Much obliged.

This is a reasonable solution
I'm kinda shocked in a good way.

>>54071398
I don't see how you think the SVB collapse is good for crypto, banks getting run into the ground by doing crypto-to-cash transactions will drive off the (very) few who were considering it.
And it is also prompting the SEC to take an even harder anti-crypto stance with the public, politicians and banks and businesses at their backs.

>>54071166
Ok, which banker from SVB are you?

>>54071504
>I don't see how you think the SVB collapse is good for crypto
I don't give a fuck about crypto, that's why.

>>54070458
lmao its doing what fdic is supposed to do but like I've been saying forever now. you fuckheads never listen. Never listen we aren't living in fucking 2008 anymore you fucking shitters.

Where the heck could the originally those startup company loan money went to?
They gotta to be in somewhere
I'm betting to ukraine

>>54071527
I'm not a banker from SVB, what makes you think I am one? I'm just calling it like it is. SVB was retarded for being in two different businesses that both were sensitive to higher interest rates (tech and MBSs).

>>54070500
>they provoked
Okay vatnigger

WE DID IT REDDIT!

>>54071451
They're still handing money to banks in exchange for illiquid assets, right? That has to have some rate-reducing, inflation-promoting effect, no?

>>54070882
That's more reasonable I could accept that

>>54071615
so what's their excuse, I finally figured out SVPB reason for default. What did they do?

>>54071166
so the entire collapse was caused by a couple VC founders?
shouldnt that be illegal?

Exit liquidity scam pump

>>54070291
Didn't Janet Smellen say there would be no bailout though? Does that mean she's no longer in charge?

If this was West Virgina, they wouldn’t do shit

>>54071648
I've also been curious about this...
Are they giving the loans out at the standard rate or is this interest free or what?

>>54071581
Because you know alot of their going ons.

AAYYYYYYYYY LETS GO WE'RE GONNA FUCKING MAKE IT BROS

YOU KNOW WHAT THIS MEANS RIGHT?

THIS GIVES BANKS THE GREEN LIGHT TO TRIPLE DOWN, LEVERAGE EVEN FURTHER

DOESNT MATTER BECAUSE THE GOVERNMENT WILL ALWAYS SAVE YOU

V SHAPED RECOVERY INTO NEW ATH HYPERINFLATION MODE INITIATED BUT THE WORLD STILL WONT COLLAPSE FOR SOME REASON

WAGMI

>>54070419
It remains to be seen where the bank's managers are in 3 years.
Either way, it encourages bad behavior by showing you can't do too wrong, the tax man has people covered whatever shit is pulled off.

That said, it's the FED's fault in the end, the risk management might have been bad, but the FED induced it by being many months behind the curve

>>54070846
Yeah it does, and it's weird that they would need that considering the reserve rules are already stupidly low. You are allowed to lend out 5:1 on every dollar you have deposited and you STILL need more liquidity oh my Lanta will someone please fire all the ban managers in the US please?

>>54071683
>Shouldn’t it be illegal for people to take their money out of the bank?

>>54071683
Not an expert, but i don't think its illegal to just... withdraw your money if you think its in danger.

Inciting other people to do the same is a different story.

>>54070419
C O P E
O
P
E

>HE DIDNT BUY THE GENERATIONAL BOTTOM
LMAOOOOOOOO

>>54071738
that's the definition of a bank run and it caused the government a shitton of loss, so yeah, I'd expect it to be illegal

>>54070291
Fucks sake

>>54071648

The whole argument in favor of QE not causing inflation was that the money never ends up in the economy so to speak. It's used to shore up banks' reserves, but it never reaches consumers hands where they can spend it on goods and services (what causes inflation).

Considering all the fears about inflation around 2008 from TARP and all the other bailouts ended up being a complete nothingburger, and inflation the last couple years has been insane after all the COVID related benefits that were designed to put more money in the hands of consumers (which along with supply chain disruptions resulted in more money chasing fewer consumer goods), I'd say they were right about QE and bank bailouts being the best route compared to stimulus checks and more gibs for regular folks.

>>54071084
The SVB executives sold their shares before the shutdown, anon.

>>54071709
Infor on it here https://www.federalreserve.gov/newsevents/pressreleases/files/monetary20230312a1.pdf

one-year overnight index swap rate plus 10 basis points

>>54071120
>How are they going to tamp down on inflation while also offering QE?
By publishing fake inflation numbers and telling you that your food costs are rising anyway because of cow farts and racial inequality.

>>54071758
Perhaps the banks shouldn’t be so overleveraged.

Its not a bailout. Its a special financial assistance package to assist with liquidity problems

>>54071738
>he thinks banks just hold liquid assets to be ready for when their depositors decide all together they want to pull out
this is not how it works

>>54071797
>its not a bailout its just free liquidity!

>>54071792
This. Idk if the US banks have a fractional reserve system but even the fractional reserve system is bullshit. Banks shouldn't be private anyway.

>>54071770
QE drove inflation in specific avenues, mainly real estate, education and healthcare

>>54070729
FDIC insures any account up to $250k, they is bailing out depositors with multi million dollar startups. Still somewhat justified IMO since startups are way better than globohomo megacorps, but if you think this is helping the average Joe you are a retard.

>>54071528
Fair enough.

>>54071843
It's not free either....

>>54071648
The assets aren't necessarily illiquid, but if a bank sold them now (like what SVB was forced to do during the bank run), they would get less money for them than their nominal value. Again, if these bonds are simply allowed to reach maturity, the bank will get their nominal value. I'm not knowledgeable enough about this to really say if it absolutely doesn't have an affect, but it's less stimulation and more of a way to give banks cash on hand.

>>54071683
Basically, yeah. Most of the testimonials I've seen from depositors who tried to get their money out went something like
>I decided that transferring my company's funds to another institution was the intelligent thing to do, no downside, only upside
>lo and behold, there was a run gong on at the bank

VC firms apparently told their portfolio companies to pull their funds, word got around, and then everything went completely fucked from there.

It's not illegal, per se, it's on the bank to keep a diversified customer base to reduce risk. SVB decided to do business with a clique of ~5000 fucking herd mentality speds, and they payed for it.

>>54071716
Nigga read the news

>>54071770
That's a pretty bad argument re: qe not causing inflation (not saying its your argument). If banks get reserves they can sustain themselves and lend more money, creating more money.

>>54071858

That's a fair point, programs like QE are intended to encourage banks to lend, so it makes sense it would drive up things like that which tend to rely on easy credit. They're kind of a separate issue too, though, you can use QE to make sure banks have healthy balance sheets and just not set interest rates to essentially 0% and make it super cheap for people to buy houses.

>>54071787
Well, its fixed rate, but at least its not just free cash.

>>54070944
>What's stopping these banks from loading up on more debt, then just using the free money to pay out to depositors?
Their ethical obligations, obviously.

>>54071868
whos going to pay for it? the depositors? kek I doubt it

>>54071965
The bonds that have yet to reach maturity?

have you even read the damn thread?

>>54071744
Post law

>>54071988
No, he's a willfully retarded kek.

>>54071792
cool it with the antisemitic remarks

>>54072021
You want me to post a law that says its legal to withdraw your own money?

>>54072021
Is dat lawful law doe?

>>54070291
Good, I wish Binance would fail already.

>>54071988
So banks loaning out money to save a bank from having to sell at a loss isn't free money? Wish I could loan x amount any time my jeetcoin drops in price. How do I join this club? Do I tell bank I'm building an app?

>>54072050
The 2nd part. As far as I know nobody has ever been arrested for saying End the Fed or non violent methods of doing that

FUCK OFF I WANTED WOKIES HURT

>>54070291
>the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions

>"make available"
>mfw

>>54071853
They do but the fraction is 0/1.

>>54072090
They have to repay it with interest, how is that free money?

>>54072112
>As far as I know nobody has ever been arrested for saying End the Fed
Uh... that's not what I said
I did say that I'm not an expert however.

>>54072090
It is literally the Federal reserves job to provide short term liquidity in such situations, in the form of a LOAN.
No one backs your jeetcoin because it has no assets, SVB has the assets to secure the loan.
IT IS NOT AN OVERLEVERED BANK
It simply had most of it's holdings invested long term, and it's liquidity was insufficient against a major run performed by it's select group of dimwit Venture Capitalists.

>>54071724
Many months behind the curve? These assholes in the FED been trying to soft land the interest rates and these tech bro man childern stomped around wanting to play high roller.

>>54070816
>which means a bunch of trash SV startups that need to die for the country to heal are going to limp onward, further draining us.
We /zombie companies/ now

>>54072200
They simply panicked because high rates of interest are diminishing the flow of cash into venture startups, and then a prominent member of their circle was all "WHAT IF OUR DEPOSITS AREN'T SECURE!?"
They all banked in the same boutique VC banks, made a run on that bank and created the whole crisis out of panic and stupidity and herd mentality.

>>54072169
>They have to repay it with interest, how is that free money?
They're getting better terms than the free market was willing to give them. If the government gives me 1000$ that's free money even if it tells me to give back 1001$ next year.

>>54070988
You

>>54072090
Retard. Only certain assets will be accepted as collateral for the loan. Can you make treasuries, mortgage bonds, or something that "low-risk" out of thin air?

>>54072309
>If the government gives me 1000$ that's free money even if it tells me to give back 1001$ next year.
No, that's an ultra cheap loan. The Fed is DESIGNED to do this in this situation.

>>54072169
>They have to repay it with interest, how is that free money?
The interest rate they charge can't possibly be competitive with the market because that would defeat the entire purpose of the program.

What's stopping a bank from giving the feds shitty mortgages that they know will be defaulted and taking liquidity from that 25 billion. Dollar pool?

>>54072309
You are not completely wrong, however consider what this will do to the bank.

After this they will be VERY lucky to be able to survive long enough to just pay the loans back, they will exist for the next year solely to pay back the Fed, then they will probably just die.

They aren't being saved by anyone, only depositors are getting a lifeline.

>>54072341
The value of 1000$ now is greater than the value of 1001$ in the future. I can effortlessly turn the free value they gave me into dollar bills.

>>54071580
Its tech bros. Whats the newest headline after Web3?
AI models and Data Aggregation

>>54070348
This morning was the moment to put your shorts

>>54070291

>>54072345
I don't disagree that it is bullshit, but the alternative is that everyone gets fucked, possible other banks fail, the FDIC does what it can to re-reimburse people and so on...

Which scenario you think is preferable is up to you, i don't think you are wrong, but i think this may be slightly less bad than just letting it all go nuclear.
Maybe I'm wrong though, idk.

>>54072359
Fed isn't likely to fall for Credit Default Swap shenanigans twice, otherwise there are plenty of ratings agencies who can assess mortgages.
In any case SVB doesn't have any significant mortgages or shitty assets. Just a shitload of 10 year bonds, boring assets.

>>54072377
> I can effortlessly turn the free value they gave me into dollar bills.
I hope those aren't taxable events anon

>>54072377
>I can effortlessly turn the free value they gave me into dollar bills.
Yes but they are only loaning you the cash because you are distressed and your creditors want the cash NOW.
You don't get to gamble it on Chainlink.

>>54070427
>kudos to the social engineers who pulled it off right
Fantastic observation. Incessant pandering to identity + lobbying worked quite nicely.

>>54072429
Are those level 4 plates?

>>54070291
Shhhh, you'll wake him up.

>>54072465
pay your taxes or we send in "the expert"

>>54070335
Hyperinflation incoming.

>>54072524
Just 2 more weeks!

>>54072524
Are you retarded? How does this affect inflation?
Are you just mad your 57th prediction of financial collapse didn't happen?

>>54072446
I am being rewarded for all my previous chainlink gambling because my losses have less of an effect on me. I plan to do more chainlink gambling now because the risk of losing has decreased.

>>54072364
Those depositors decided it was a good idea to give Jay their money, and are now being bailed out by inflating the money of people who decided not to get involved with Jay.

>>54072412
Nuclear option is better. Stocks in general have been sideways since Trump pumped the market from historic records. Whats the alternative, giving risky venture capitals the ok that their AI, Web3 and Onions based start ups are sound investments?

>>54072412
shut up amerimutt.

i have the vestige interest in seeing all of you suffer

be it opoid or dollar collapse, your mutt ass should be sent to hell

>>54070500
post your fuckin nose jewish man

>>54072524
I can smell the curry coming off of this post

>>54070802
>This seems different than the subprime thing in 07-09

This is much different than '08. Back then, the toxic asset was bad mortgages. This was caused by corporate greed/consumer stupidity, and the Fed was able to use their tools to fix things.

Now the toxic asset is treasury bills. The Fed basically destroyed the value of the collateral the banks were using by raising interest rates. Every time they raise rates, the collateral gets more worthless.

They are basically saying, "we need to keep raising rates to fight inflation so we are going to still pretend your worthless treasury bills have the same value they did a year ago so the entire system doesn't fall apart."

The only other options are runaway inflation or widespread panic/bankruns destroying the entire economy, so this seems like it is actually the least bad route.

>>54072553
>Bank takes deposits
>Uses them to buy assets
>Assets lose value
>You want your deposit back
>Other banks have to cover difference
>Banks enter into reverse repo agreements with the Fed
>Fed prints to pay interest on agreement
Woah nigga it's .-~* I N F L A T I ON *~-.

>>54072643
Oh, you're russian. Ew.

>>54070322
This won't solve the systemic problems. This is a bandaid on an arterial bleed

>>54072553
Where are the hundreds of billions of dollars in deposits coming from

>>54072090
>How do I join this club?
the first step is getting circumcised

>>54072790
>This won't solve the systemic problems
What systemic problem? Please be specific.
>This is a bandaid on an arterial bleed
What arterial bleed?

I hope you can tell the difference between a coordinated bank run and a MBS credit crisis or I'm not interested.

>>54072787
enjoy your nigger neighbors amerimutt

>>54072762

Part of it too is just sounds like the diversity hires in the risk management department at SVB were just retarded. You'd hope a bigger, more experience bank wouldn't have locked themselves into 10-year bonds and MBS at a time when interest rates were at historic lows. Even if they didn't anticipate high inflation and rates going up as much as they did, they should have foreseen that they would go up and that would have a negative impact on the value of their existing bonds.

>>54071120
Maybe they shouldn't have put all their money into bonds -- or kept a line of credit open from another source to ensure they could handle Armageddon withdrawals?
My options get fukt because of timing -- why are bonds any different?
Hey Mr. Govt. man, my options won't pay out for 5 years, but ppl keep asking me for money now? Help?

>>54072862
Enjoy living in north korea 2.0, Ivan.
Also, I'm not american.

>>54070335
how else will they keep confidence in the system?
Plus, no tax money is going to it. It's paid for by the banking system.

So banks can now exchange low yield bonds for a face value loan for liquidity.
This liquidity is intended to calm the depositors and stabilise markets, thus removing the need for the liquidity.
This excess liquidity is then rolled over into higher yielding bonds, thus swapping low yield for high yield.
>bonds are now effectively variable rate
>higher rates cause more inflation
>???
>profit

>>54072887
worst, i live in ohio
now kill yourself fucking europoor

>>54070291
But I've just withdrawn $50k in two suitcases.

>>54072921
Cool, you'll be shipped back home eventually.

kek that's a bailout, they will just give them infinite money in the form of a loan, they will pay off their creditors with the loan then go bankrupt leaving a big fat 0 for the taxpayer who loaned them the money

>>54070291
BTFP isn't a bailout though
the banks have to pay more money than they borrow back to the fed over time. it's a loan.
you guys don't actually have any money, do you?

>>54073055
they will just take out so much money that it creates a systemic risk if they have to pay it back so that they get another bailout

>>54073055

TARP wasn't a bailout either, they were always loans that the banks had to (and did) pay back with interest. Didn't stop people from calling them bailouts and getting outraged about it, though.

>>54073092
the PDF says right on it that the program is $25 billion total.
we have a $30 trillion economy

>>54070335
Just buy assets. We benefit from the jews fucking the masses by buying crypto

>>54071648
>They're still handing money to banks in exchange for illiquid assets, right?
they're not worthless assets and not that illiquid. it's a one-year program.

It looks like Christmas in my app

>>54073155
you're making that up asshole, it says 25 billion from the treasury but that's not the whole thing. fuck off

>>54073120
Loan money to bank. Bank increases rate to loan money to people to pay back loan. People pay for loan.

>>54073196
>it's a one-year program
QE was originally a one-time deal as well. Not a chance rates go down so much in the space of 12 months that a 1.5% treasury will again be able to be offloaded without taking a bath in March of 2024.

>>54073055
I admittedly don't know shit about fuck, but please explain that a bit more.

The bank would only need this assistance if they didn't have money to pay their debt to begin with. How would a bank which is out of business due to having no money going to make money to pay back a loan that's bigger than the one they couldn't pay in the first place?

>>54070291
https://youtu.be/QM5qyfkKgac


satanic ritual confirmed

>>54073155
that doesn't make any sense SVD had 175 billion usd in deposits how can they cover ALL of that with 25 billion?

>>54072848
No regulation is a systemic problem. Antitrust havens are a systemic problem. Naked shorting(counterfriting) is a systemic problem. Repealing glass steagle is a systemic problem.
HFT is a systemic problem.
PFOF is a systemic problem.
NSCC waiving margin requirements when the hedgefucks and bankers screw up is a systemic problem.
Every time the criminals running the markets and banks screw up the response is to simply add a few more zeros to the ledger is a systemic problem.
Are you absolutely clueless or just a shill?

>>54073305
he's a fucking idiot looking for any straw he can use to suck fed cock

>>54073055
they will gamble it on shitty meme stocks as soon as it hits their accounts. if you expect anything less you are delusional.

Can I please get a bailout, Mr. Fedberg sir?

>>54073295
>didn't have money to pay their debt
It's not debt. It's a liquidity problem. A bank takes your money and then invests it in loans or treasuries or whatever. They keep some cash on hand to pay withdrawals, but it's a relatively small amount, so in the unusual event that a lot of people start requesting withdrawals then they have to go sell their loans to get the cash to give back to their customer. Depending on the state of the broader market, they might have to take a loss to sell off those loans. If the loss is big enough, it will eventually collapse the bank. On the other hand, if the bank had the time to wait for the loans to mature, they wouldn't take any loss.

>>54073283

Bank makes money, US treasury makes money, customers don't have to worry about their bank going under, investors don't have to worry about stock they own in the bank going to $0, etc.

I'm failing to see the downside here. The US govt made $100B on the TARP loans. Was it a handout to the banks? Sure I guess, of course they're giving them a really good rate on the loans. But the point is the program isn't costing money in the long run while also helping ensure that contagion doesn't spread and the banking sector stays healthy. Sounds like a pretty fair trade to me.

>>54073283
the bank has to compete with other banks though. banks that did not use the FED program, thhus have lower cost of funds. There is a reason it's called lender of last resort. It ruins your reputation and brand.

>>54073390
>The US govt made $100B on the TARP loans.
Cool story bro, where did the banks get $100B from? they pulled it out their asshole?

>>54073390
I hope your holding SVB stock shill.
If you are I hope your ready to see that 100$ stock get split to 50$ as they round up funding. The FED explicitly stated they dont care about the stock holders of the SVB share.

>>54072412
You’re a dipshit. The point is there is consequences to bad fucking decisions. Now there is even more proof the finance community can do whatever the fuck they want and can be bailed out. You know when this ends though, when shot absolutely gets destroyed and I’m sure you’ll be one of the first to die, you deserve to be.

>>54073390
Everyones making money, were all rich!

>>54073381
post 23andMe and we'll talk

>>54073421

From the money they made since 2008 because they didn't fail and could continue to operate thanks to the TARP loans. Duh.

https://projects.propublica.org/bailout/

>>54071166
I don't give a fuck about depositor confidence you deflecting kike. We all know what the rules are-->250k is insured. The bank should fail and the depositors should be ruined

>>54073391
So what you're doing is they owed money and didn't have it? I believe throughout most of human history that status is usually referred to as "being in debt."

This isn’t a bailout and you’re all stupid. The bank is still being shut down. The funds are coming from already existing money to guarantee deposits the customers had in the bank.

>>54073478

I don't and I think it's just accepted at this point that shareholders are going to take a bath on SIVB. Fed only intents to protect depositors and I don't see this changing.

>>54073536
no you dont understand, you are not high IQ!

>>54073530
Exactly, fucking consequences to doing stupid shit, like not getting additional deposit insurance.

This country is fucking shit. $200B bank is now too big to not get special treatment.

>>54073421
They got it from having enough money to weather the storm. Before the bailouts, it looked like some banks would have to be liquidated, which would depress the prices of assets market-wide, which would make other banks insolvent, forcing more liquidations, and generally creating a death spiral. The Feds instead gave them enough money to stay afloat, which increased their asset prices above where they had been pre-bailout due to there no longer being a risk of massive fire sales, which enabled them to pay back the loans with interest not that long after.

>>54073536
Deposits aren't considered debt because debt, which I believe is because debt usually has a timetable for repayment, whereas deposits are payable at-will. If banks knew when depositors would want their money back, they wouldn't be vulnerable to runs.

>>54073574
>special treatment
Getting a loan against safe secure assets from the Fed is literally what the Fed is supposed to do. They aren't supposed to just GIVE money away.

>>54073558
Normally I'd agree and think the share holders got what they paid for since they'd be fucked on a default too. But this different situation where they looked at the share holders as piggy banks to be broken open at any moment.

>>54072762
>This was caused by corporate greed/consumer stupidity
How much of it was from DEI type bullshit, the ending of 'redlining' and the government trying to increase home ownership among blacks though. Banks had been forced by the state to give out obviously terrible loans in order to achieve this, but few people ever bring it up anymore.

>>54073556
Fuck off shill it's clearly a bailout. They are able to use their 1% bonds as collateral to buy 5% bonds AT PAR VALUE. The govt is buying their own debt back at face value. It's intervention in the bond market, it's bigger than a bailout.

>>54073536
they have assets worth enough that if they sold those assets, the depositors could have most or all of their money, but the bank would close and the shareholders would take huge losses.
it is better if everyone could just wait. the assets on a bank's balance sheet are the money-generating kind, because typically payments are coming back to the bank regularly. they're loans.
on the other hand, banks are not allowed to write down the assets they acquired with debt, but that's also what you have to do when you sell a T-bond with a woefully small coupon when prevailing rates are 5%. nobody will take it at the price you paid, that's retarded. if you bought it at par and expected 0.5% after a year but suddenly new ones carry a coupon of 4%, yours is shit. it sells substantially below par.
if you wait, you get all your money back at maturity no matter what the current market value is of the bond/note. that's how bonds work.
SVB had too many of these and depositors won't wait so it's simply unable to operate.

>>54070322
>>54070291
HYPER INFLATION
LET'S FUCKING
GOOOOOOOOOOOOOO

>>54070728
Is this actually a cause of what's happened or just something funny on the side? It'd be incredible if this led to the whole thing.

How Fucked are we? We went from no bailouts everything is fine in like 24 hours to full bailouts for 2 banks, but allegedly it's not a "bailout".

>>54073794
If you want to make a bet bet on nothing at all changing. This is just kicking the can further down the road just like they did in 2020. Stagflation for the foreseeable future

>>54070446
Someone click it

>>54072040
Back to plebbit you woke tranny loving FAGGOT!!!!

>>54073755
Well they bought some low yield bonds which would cause them problems in some 4 years, but yes this woke shit is what caused the collapse now. They focused on gay orgies instead of actual banking. Some german VC got problems with SVB, delayed transactions or something, so they withdrew they money and adviced their clients to do the same, bank lost 42B in one day and collapsed

>>54070638
That game was so much fun. What was it called again?

>>54073755
A bit of both: they had nobody running their risk assessment team, so even if it was operating competently, nobody was taking it to the idiots buying mortgage-backed securities and t-bonds like hotcakes.
The funny is a dumb bitch organizing a pride month campaign complete with a day focusing on lesbians for places they'd get stoned or raped.

>>54073712
We have no idea the value of SVBs assets since we don’t know the actually value of their $120B in MBS. Shit could easily be worth 30% less. But now the government will take it from them at par value. Must be fucking nice.

>>54070728
Imagine putting a perverted whore in charge your bank. Shamalla llama la.

>>54073794
yes. a bailout is when the shareholders are made whole.
a bailout is when SVB equity is $100/share and it goes to $0/share but JP morgan is allowed to borrow enough money to buy all of SVB at $100/share, thus rescuing SVB owners and executives. then JP is allowed to pay their government loan back over a decade.
SVB's balance sheet wasn't negative or something illegal or insanely stupid, they are simply caught by the fed's own rate hikes. they did not raise capital when they should have for over a year, the stupid thing they did was to just sit there and probably not even realize what was happening.

>>54073995
okay. go sell a house for 30% less than it's current price, then.
fucking fairytale.

>>54072848
Here’s your specific banks name by name with relevant financials chud

https://www.morningstar.com/news/marketwatch/20230311320/10-banks-that-may-face-trouble-in-the-wake-of-the-svb-financial-group-debacle

>>54071166
The loan requires collateral. The collateral is the shitty worthless junk bonds now valued at Par value. The bank is refinancing they’re worthless bonds as if they’re worth the original price. They have 0 incentive to pay back the loan and get they’re worthless junk bond back.

Why are we holding all this money! Worst case funds? It should be in investments making money! Invest it all.
Why don't we have enough money to cover our worst case scenario? Fuck we're insolvent.

>>54074055
they're not junk, they're sovereigns. USTs. "quadruple-A credit." they carry small coupons because that's what the FFR was. it's a duration problem, not credit risk.

i think this lets fed continue to raise rates without blowing up banks. Everyone celebrates tomorrow, cpi/ppi come in mixed, everyone assumes .25 next week. FOMC is .5 and puts pay out big. Banks can dance around getting made illiquid w this new program. only issue is 25 billy is way too small.

>>54070500
Agree fellow comrade. Much love from Texas Oblast!

>>54073606
>If banks knew when depositors would want their money back, they wouldn't be vulnerable to runs.
What are you implying with this statement

>>54074055

They're hardly worthless. The bonds are still worth their principle plus interest upon maturity. It's only before maturity on the secondary market that they're worth less than face value, and that's because of the extraordinary interest rate market (going from basically zero/0.08% in Feb 2022 to 4.5%+ today).

>>54070944
cool it with the antisemitism

>>54074210
Explaining why they're worth less than face value won't make them any less financially detrimental to acquire. It'll just make it clearer why they ought to be avoided in favor of any other more lucrative alternative.

>>54074210
So basically, worthless until maturity. Putting cash in a time locked vault basically. So many ppl treat bonds like pristine collateral, and it drives me bonkers.

>>54074028
You fucking moron, do you know how bonds work? It has nothing to do with me selling my house dipshit.

This shit just gives all VCs and hedge funds even more reason to take whatever risk they want. Big daddy government is always here to help until they aren’t. That’ll be a the day.

Until then, we may as all be as fiscally irresponsible with money as we can.

>>54074114

Keep dreaming bobo lmao. 0.5 is definitely off the table now, although I do think they'll continue with .25 point hikes. But they'll probably stick to their original rate target now and just live with 3-4% inflation if they can't get it down to 2% like Powell originally wanted.

Inflation will go back down regardless of the Fed's actions once student loan payments restart and retards who bought mortgages that are 35-40%+ of their take home pay have to foreclose when there's not enough money in their budgets to pay for both.

>>54074258

And again, the Fed's job isn't to make money (although they will profit a bit off these loans). As other anons have pointed out, their job is to be the lender of last resort to banks and ensure the banking system remains solvent and healthy.

>>54070713
You don't have to be woke to fucking despise racists and bigots. That's just normal.

>>54074332
Making money on these asset sales is the only way that taxpayer money stays out of this situation. Otherwise, it'll be any other taxpayer funded bailout in everything but name.

>>54074332
>It's the racketeers job to be the solution of last resort! God bless them!

>>54071555
They are bailing out all deposits, not just the FDIC $250k limit.

>>54071000
CHECKED

>>54074404

The Fed will make money though (but probably not nominally/adjusted for inflation). Unlike a bank experiencing a liquidity crunch, the Fed can afford to sit on these bonds for 10 years or however long it takes them to mature if the bank still ends up defaulting on the loan and Fed takes their collateral.

>>54074486
So it's alright to spend taxpayer money now, if the Fed is guaranteed to make up the difference in the future? Maybe so, but that doesn't change the situation as it stands right now. Normal people have already paid, and will continue to pay, for rich people fucking up. Hopefully those fuck ups equal put eventually. But even if they don't, it doesn't really matter, does it? The practical issue gets defrayed right now, no matter how the future turns out. If that isn't the core of every fucking problem right now, strike me dead.

>>54074486
>(but probably not nominally/adjusted for inflation)
Back in reality that's what actually matters.

>>54074173
If you go to a bank for a loan, they'll tell you when to pay it back. Five years, seven years, ten years, etc.

If you deposit money into a bank, you can withdraw any or all of it whenever you want, whether that be a few weeks or several decades down the road, but the bank doesn't know when you're going to do it. They might invest your money into a 1yr security, but if they were somehow clairvoyant and knew that you were planning on withdrawing it all in four months, they might prefer to keep it all in a 3mo security instead so that they have the cash ready when you come back for it instead of locked up in a longer-term thing.

>>54070291
Let them die.

>>54074486
Ha, they wait 6-10 years to get the money they paid par for today, while getting 1.75% a year. They are going to lose billions on these loans by the time they mature, just on inflation. No worries though, what’s a bigger deficit

Who's gonna bailout my short position now?

>>54071166
>they decided to completely fuck over the bank by mass withdrawing their money
>their money
>their
>money
HOW DARE THEY WITHDRAW THEIR OWN MONEY?!?!?! FUCKING HOLOCAUST ALL OVER AGAIN AHHHHHHHHH

>not enough liquidity on hand
fucking lol american banks

>>54074703
https://www.federalreserve.gov/bailout
Apply

>>54070944
Aren't you feeling sleepy? I know I am. With the whole daylight savings time shenanigans I'm feeling beat. Yup probably time for me to hit the hay.

>>54072524
>hyperinflation
buzzword meme

>>54071853

>2008 bailouts got trillions of dollars of interest free money
>but the FED is definitely going to charge themselves interest this time!

>>54070291
>>54070322
>>54073743
So when are they going to raise the minimum wage to $25/hr to compensate for the inflation?

>>54070988
Your pocket

>>54070291
The FDIC can't even cover 2% of depositors. This proposal will at best cover another 5%. I hope you like getting 7 cents on the dollar for your deposits because right now that's the BEST possible scenario. Oh, and the FDIC has like 3 years to pay out, so you'll be without that money for a while.

>>54071074
kek, the standard model is to bailout via buying stock that will be sold at a huge loss by the government. Wish I could sell my portfolio to the government and buy it back when it's worth $11.2 billion less!

>>54075499
Oy Vey goy, don't you know wages are the cause of inflation? Ignore the fact that wages are falling behind inflation, we can't raise wages because that is the cause of inflation!

>>54070728

>>54070322
libs say shit like and think it's not a self own lole

>>54075756
Kek, it's cyclical, dummy.
One feeds the other, and the real cause of it is the unsustainable nature of Western society.

Consumerism, gubbermint planned economics (like it or not, but corporations are a GOVERNMENT-backed concept, not a free market), and a value-less society (no, making coffees and an African Studies degree aren't actual forms of value) are the real causes, and this is why both printing more money OR raising the wages OR bailing out the companies is nothing more than a band-aid.

It's an unnatural, diseased society and it must be allowed to burn to re-establish a more natural order.
Prep, bide your time, have kids (don't give me antinatalist bullshit, hard times make strong men), and find like-minded people that are white.

We just got Fucking hosed again didn't we? Man they just played us once again like a bunch of Suckas!

>>54070291
Will we get protests like 2008 or is everyone a zog brained demoralized NPC now with no hope?

>>54070322
>Cheering on Hyper Inflation to own Cletus
Are you daft?

>>54077308
Leftists will 100% keep licking silicon valley's rainbow colored boots. Maybe some tea party thing could happen.

>>54077257
>corporations are a GOVERNMENT-backed concept, not a free market
A free market only exists when there is a government to support it, if that's what you mean

>>54071107
> Socialized losses, private profits

That’s a really good way of summing it up. New catch phrase for occupy Wall Street 2.0

>>54071074
And then if they don't....they get bailed out?
lmao this is a fucking joke

>>54077615
Dangerous levels of nooticing detected

>>54071960
What ethical obligations?

>>54070576
Nationalizing the banking system. It can never fail now. Banking failure = Government collapse and vice versa.

>>54070322
>He was betting against rich guys losing money
ngmi anon. just play the game

>>54070291

So, we're just going to bailout uninsured depositors at tech/meme banks now?

Look up the top 10 companies that had a retarded level of deposits at SVB. Then look up which politicians own those stocks. This shit is so obvious at this point it's actual funny.

BTW, where are all the bank-run retards now? Like I've been saying all weekend. There will be no bank-runs. This is another nothingburger.

>>54070787
Where do you think the money comes from which will guarantee all depositors? From tax payer? No. From Bidens personal account? No. From other banks? No they don't have the cash.
From freshly printed money by the fed.
Printer goes brrrr brrrrrrrrr
Inflation will now turn into hyperinflation
Venezuelan economics by next year

Buy BTC, eth sucks, any PoS sucks.

>>54070882
Goy have less than 250k
Jews, so called shareholders and investors are the ones having more than 250k and are now getting free billions
They took 0 risk
They didnt even bother with paying insurance

Have had the flu for a week and have been ignoring all this, what could I have invested in after hearing about SVB failing to profit most off them getting a fat nigger bailout

right after I quit quit my job I get loud fired and just in time to miss this loud pivot because the feds are giving a loud bailout so the heckin bankers and techerino upperclass yuppie pretend jobs can have a soft landing and avoid a quiet eviction from their inflated apartments

So interest rates no longer matter, except in terms of accelerating inflation? Neat.

>>54071074
>it's loans for up to a year that they have to pay back
Lol like those PPP loans that got foregiven? More corporate welfare handouts from the taxpayers? Rich niggers are lazier parasitic filth than poor niggers.

>>54070446
>all money
>all money
>all money
>no change
Some poll, retard

>>54070369
This sort of behavior will break the bond market.
There will be no reason to buy any short term, since I can always get the best rate any time I say I need more.
Obviously this will also then compete with equity and lending, since why would we put more risk when we can just bet on middling value bonds.

>>54079454
Anon, in a responsible time, a person who had this information would record it, and share it directly, instead of asking other's to
>look it up.

top kek, weimar