/biz/ - Business & Finance

[Anonymous No.54058952]

Option A: Save the banks. Double digit inflation for the next 10+ years
Option B: Don't save the banks. Inflation goes down but max pain from contagion

What will he do?

[Anonymous No.54058962]

>>54058952
Half measures that do too little, too late. He's going pussyfoot and try to put a bandaid on a bullet wound.

[Anonymous No.54059017]

B would be the right thing to do. But I am betting on A because billionaires are lobbying for a bailout and they will probably get it

[Anonymous No.54059019]

You don't understand option b, in the case of that option it's not max pain, it's death of the financial system

[Anonymous No.54059037]

>>54058962
bandaids to slow the bleed until the next election cycle where whichever red candidate wins they will be able to blame conservatives for the crash when all the cronies money controllers rip off the bandaids at the same time

[Anonymous No.54059038]

C: Banks will save themselves with your money via bail-ins. Thank you for playing

[Anonymous No.54059045]

A, they always do option A. I wish for once we could have the fun time

[Anonymous No.54059085]

>>54058962
So, saving half of the banks then?

[Anonymous No.54059115]

>>54058952
AA (the flattest boobs are the least fun)

[Anonymous No.54059121]

>>54058952
Higher interest rates don’t lead to lower inflation
You’re stupid if you think raising the profit margin on banks makes them create less money in loans for the other banks they own part of.

Everyone on biz knows this shit is true
I don’t know why people here still larp like higher rates lowers inflation

Stop playing the role of stupid goy and repeating that banker bullshit

[Anonymous No.54059147]

>>54058952
god DAAAAAAAMN how much is his setup cost
fucking hell that monitor arm is alone like 1k

[Anonymous No.54059148]

>>54059115
flat is justice

[Anonymous No.54059188]

>>54058952
Option 3: invest in housing and energy to reduce inflation

[Anonymous No.54059253]

>>54059019
Max kino, got it

[Anonymous No.54059269]

>>54059019
How is the death of the financial system not max pain? What an incredibly stupid post

[Anonymous No.54059275]

>>54058952
Which option pumps my crypto and metals?

[Anonymous No.54059279]

>>54058952
The problem is simply that the system is liable to rug everywhere: banks go bust, stablecoin issuers go bust, bonds go bust, and so on, and so forth. The problem isn't the quantity of money, since the money is already out there and is being used as money, i.e. that MBS-collateralized interest rate swap in the Congolese overnight repo market that some guy at JPM thought up after a heavy binge drinking session has already been lent out into the banking system, so it already had its effect on inflation. The problem is its sudden disappearance when people panic about the soundness of that fine investment.
The Fed could literally just print up all the bank money, bail out every bank (just the deposits, not the bank as a whole with all bullshit schemes), and pay every dollar-denominated bond too, and it would all be fine. I know it sounds insane, but think about it:
Let's say there's 5T "money" in the system, but it's actually different things: physical cash, bank credit, collateralized loans, derivatives. Let's just say for examples sake that there's 1T cash and 4T bank credit, so
>money supply = cash + bank credit = 5M = 1C + 4B
The 4B is redeemable for cash, but there's only 1C in existence, which enables bank run mechanics when people rush to redeem B for C. If you replaced B with C, you'd have
>money supply = cash + bank credit = 5M = 5C
Simple as that. The problem is that if you tried to implement this today, it'd lead to hyperinflation since you can always do this, not just in a bank run. But in theory, they genuinely could just cover every default, it wouldn't change the amount of money (except insofar as banks would start creating new money after such a bailout more profligately, but that's an independent problem).

[Anonymous No.54059313]

>>54058952
>Maybe we should Great Reset finance

[Anonymous No.54059384]

>>54059275
A, but if you are working class then A will fuck your shit up hard by reducing your purchasing power that your crypto gains wont really matter

[Anonymous No.54059429]

>>54059384
That wasn’t true with covid poomp so I don’t see why it would be true now. Just buy the right projects

[Anonymous No.54059463]

>>54058952

Neither you fucking moron. This is another nothingburger and I hope all of you stfu by next Saturday. Shiting up this entire board with your fucking FUD.

Every silicon valley retard claiming its 2008 all over again doesn't even understand the basics of the banking system. You're all going to look retarded by next Saturday and we'll all just pretend like nothing ever happened. Remember Evergrande?

Fucking rope before the FUD is over so only the normal people are left on this board.

[Anonymous No.54059476]

>>54058952
Nothing Ever Happens.
The system will chug along nicely with a FED funds rate beyond (positive) 7% well into the 2030s.

[Anonymous No.54059502]

>>54059463
This.
People will pretend to have always known this was another nothingburger come next Saturday when the weekly candle was green.

[Anonymous No.54059526]

>>54059463
I seem to remember you saying something similar just before the covid lockdowns in early 2020. You're just like the vast majority who, when confronted with a desperate situation, always (and I mean always) do absolutely nothing.
Ofc you might be right, but there's every chance you could be wrong, despite your frudtrated swearing and inability to convey your feelings eloquently.

[Anonymous No.54059547]

>>54058952
Option A, but not immediately. It'll only happen once it's clear that multiple runs have already happened and a decent chunk of people already have (now worthless) money in their mattresses. My bet is this happens 6 months from now when SP is down and when it looks like too many "smart" plebs tried to jump the deflation gun. I'm talking people with 50K in cash hidden in the walls immediately roping because everything from food to rent to housing does a 2x on the pivot and keeps climbing from there and they're scrambling and failing to find a way to put their chips back on the table to keep up. Anyone who legit withdraws cash in excess of 20K is going to get tripped up by so much identity, compliance, and tax shit trying to get back in the game that their head will spin.

[Anonymous No.54059555]

>>54059019
> poorly run, degenerately leveraged regional banks are pillars of the financial system

[Anonymous No.54059581]

>>54058952
You forgot option C: WAR.

[Anonymous No.54059582]

>>54059526
Wouldn't you rather be
>uneloquently correct
than
>eloquently incorrect
when it comes to business and finance?

I mean, as an example, you sound like the biggest shiny boom rock advocate next to P. Schiffy who eloquently got it all figured out, however reality continues to unfold in a whole different manner.

[Anonymous No.54059645]

>>54059526

You remember me saying what? Are you fucking schizophrenic? Oh wait, we're on 4chan. This is an Anonymous board retard.

>You're just like the vast majority who, when confronted with a desperate situation, always (and I mean always) do absolutely nothing.

And you're the guy fighting at Walmart for toilet paper. Covid was a nothingburger you retard. The panic was self-induced by morons like yourself and the government seized on your fear porn. Just like this situation.

>inability to convey your feelings eloquently.

Because morons like you cause panic over nothing. Plunge the country into chaos, then pretend like nothing ever happened. You're a fucking parasite.

[Anonymous No.54059690]

>>54059581
What if you lost the war with all this economic burden?

[Anonymous No.54059731]

>>54059019
>degenerate banks fail
>larger banks and well ran regional banks suffer a few years of steep losses, but have the funds to remain solvent
>ultra deep recession for nearly a decade
That’s better than option A in every way in the medium and long term despite being awful in the short term

[Anonymous No.54060049]

>>54058952
fed is a conglomerate of banks and option B is on the table?
this is really the level of /biz nowdays?

[Anonymous No.54060065]

>>54058952
we need to do this shit like a bandaid. im sorry but the harsher we are, im talking 10+% prime rate, reserve requirements of fucking 20% etc...
just buck up and have a tough couple years and save the dollar for the next generation, also we need to gas all the jews and re-segregate schools.

[Anonymous No.54060161]

>>54060049
Option B only relates to small and mid sized banks. The big ones who have a seat at the fed are relatively safe and their control of the financisl indistry is only consolidated with option B. You are in no position to complain about the level of /biz/ because you are the one dragging it down

[Anonymous No.54060258]

>>54058952
B

For the love of God! Go for B.
Not this shit again!

t. millenial

[Anonymous No.54060297]

>>54059645
>covid was a nothingburger which was seized upon
Yes, it wasn't planned at all. Completely just spontaneously jumped into life. Operation lockstep is a figment of my imagination.
You're an idiot, even if youre not the guy I originally addressed and just some troll. You're a pair of idiots.