/biz/ - Business & Finance

>>54178830

Go back to your containment board.
>>>/pol/

>>54178830
Don't care, doesn't matter

>>54178830
you are a fucking useless piece of shit
GO BACK

>>54178830
Go be an incel somewhere else

>>54178830
So if a bank is so big that it failing would destroy the whole country, the Fed can't let it fail. The Fed calls these banks "systemic risk" banks because their failure would constitute a systemic risk to national stability. If one of thos ebanks starts to become insolvent, the Fed thrws money at it until stability is resumed.
But that causes a problem. If only banks above a certain size are systemic risk protected, and banks below that size only have FDIC insurance to cover each depositor up to $250k, then what are the consequences?
They only have two options:
1) Every deposit bigger than $250k flees to the systemic risk banks where it will get full protection. This causes a bank run on small and regional banks, destroying the entire banking sector for every bank that isn't huge already.
2) The Fed has to loosen its systemic risk criteria and bailout banks that are smaller than the cutoff usually would be, like SVB. This means that the Fed is effectively backstopping every deposit over $250k on many more banks than just the systemic risk banks, which is a recipe for hyperinflation.
There is no way around this. Small banks are terrified they are going to get bank run as everyone runs to the safety of the big 4, Europe is furious because the US has spent the last 15 years saying it wouldn't do bailouts any more, then did bailouts the moment shit hit the fan, and Yellen just came out and basically said they hadn't planned around this at all and had no idea how to get out of this trap.

>jews living expulsion to expulsion

>>54178975
Why are bank failures that destroy countries allowed?
Wouldn't this be an argument for full reserve banking?

>>54178830
>>54178907
>>54178931
>>54178932
>>54178969
Plot twist: all of these posts were made by the same CISA shill over a VPN to discredit /pol/. The government is actually shitting their pants right now over a financial collapse.

>>54179000
just get rid of banks and yolo it, problem solved

>>54178830
>What are the consequences of the government saving all of these broken banks?

Literally nobody knows, and reaching a consensus is hard because of all the interference being ran by the feds to obscure the situation, which signals that we're in deep trouble. I've never seen a happening be obscured this much. chatgpt4 has killed /pol/ 95% of threads are bot made now but look realistic to the untrained eye. you're literally talking to robots.

>>54179000
Checked.
In answer to your question, Caitlin Long has been trying to launch a new bank called Custodia, where they hold all your assets 1:1, don't gamble with your money at all, and their profits come from you paying an annual fee, instead of letting them gamble with your funds with a fractional reserve.
Her application was denied by the Fed as a "threat to stability".
So, under the current system, having a bank that actually holds on to all your money, is a "threat to stability".
Thing about that for a while.

>>54178975
The great thing about economics is that it doesn't care about any "clever" tricks pulled.
It's wonderful seeing the people in charge squirm.
Of course I fully expect pain in my near future as well with how things are going.

The JIDF is really working hard to keep this board under their control.

>>54178907
>>54178932
>>54178969
see
>>54178983

>>54179229
they caught up with the game too late kek

>>54179165
I like how they criticize the concept because muh shadow banking when that shit already exists.

>>54178830
There should be a "Jews living alleged genocide to alleged genocide" about to stab the government guy in the back or something.

>>54178975
it just goes to show how much of a scam the whole fiat system is. its all make believe b.s

>>54178830
It's crony capitalism plain and simple. Same with mortgage backed securities, the govt guaranteeing them caused the financial crisis.

>>54178830
keep in mind the us government and the banks are all one institution.

>>54178830
You're better off asking /pol/. This board doesn't know shit about shit.

>>54178830
Unless you’re here looking for the next scamcoin to get rugged on, go back. But if you want a serious answer, >>54178975 said it best. I’ll add that if your smaller bank is a credit union you’re definitely better off. 2008 showed that the fed absolutely will step in if a (((too big to fail))) bank is about to default. But that’s more for the interest of the country’s financial system and not you, the goyim.

A local town bank has to to keep some kind of accountability with their immediate customers not unlike a smaller scale politician. They’re more likely to make better decisions with your money, but it’s still a part of the bigger problem, and that’s fractional reserve banking. They’re banking (kek) on you leaving money with them for them to borrow against when authorizing a loan if any kind. A big bank does this until what happens this week happens: a sudden withdrawal of all their liquid cash via their customers money.

>>54178830
>Repercussions of gov bank bailout

The shitshow you see now can be traced to the decisions made in the wake of 2008. Now the cycle begins again.

if it's 2008 all over again, does that mean the government will turn on the money printer? i dont want to underestimate uncle sam.

>>54178830
AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA

GO BACK GO BACK GO BACK GO BACK

AAAAAAAAA SOMEONE GET IT GET THE FUCK OFF MY BOARD

AAAAAAAAAAAAAAAAAAAAAAAA

>>54178975
All kind of journalists said this already. That the Fed implicitly is going to backstop all deposits from now on. Why do you post this like some sort of epiphany?

>>54180966
>news from a week ago is very old and already discussed and you should ignore it and write it off because it's such old news, yawn, why even bother talking about it, we've all moved on
Shalom

>>54180984
It's just insincere. You're parroting these people.