/biz/ - Business & Finance

[Anonymous No.56400786]

Do bankers jump out of their offices now? Any webms already?

[Anonymous No.56400793]

>>56400786
ooooh 5% how scary. Nigger we've had 11% inflation for like a year now. Market doesn't care.

[Anonymous No.56400804]

>>56400786
>he fell for the jump out of their offices meme

[Anonymous No.56400813]

>>56400804
They don’t do that?
Im really pissed if that is true

[Anonymous No.56400881]

>>56400793
>Market doesn't care.
This. As long as money printer go brrrr, line go up. Your savings (and the chump change they throw you for parking it in bonds) will be worthless in by the end of the decade.

[Anonymous No.56400888]

>>56400813
They did that back when there were actual consequences for destroying the economy

[Anonymous No.56400931]

>>56400888
People will just storm the banks and hang them, right?

[Anonymous No.56400985]

>>56400881
not if i spend all my savings first

[Anonymous No.56400992]

>>56400931
Greetings from /pol/ friend! Back my way they say "you won't do shit"

[Anonymous No.56401003]

my uncle works at Bank and says its worse than you can imagine

[Anonymous No.56401378]

>buy 1m of 30yr bonds
>get 50k a year risk free
>better life than the average neet-wagie
why don't you do this anons

[Anonymous No.56401395]

>>56401378
i dont have 1 mil

[Anonymous No.56401400]

>>56401003
It's objectively the worst time in history, the banks that can hold out until maturity will be safe but the ones who can't are basically over

[Anonymous No.56401422]

>>56401400
so basically time to buy gold as gold will rise

[Anonymous No.56401483]

>>56401003
>>56401400
Explain please, why is this bad?

[Anonymous No.56401504]

>>56401483
Imagine if the collateral that you back your fractional reserve ponzi did pic related.
If you can wait until the bonds mature then nothing happens but if you can't (see SVB) then it's over

[Anonymous No.56401513]

>>56401504
Why would a bank require collateral when there are no reserve requirements?

[Anonymous No.56401524]

>>56401513
When users want to move money to other banks they need to send actual money (see SVB again).

[Anonymous No.56401540]

>>56401524
Thanks I'm not tarded but I don't keep up either. Well I would assume then the banks are going to issue debt asap so they can have a higher income stream. I guess that's part of the road to hyperinflation. Banks ARE the money printers afterall.

[Anonymous No.56401556]

>>56401524
Hang on why can't the banks just print money by landing each other money like in the repo thingy.
Bank A needs to give money to Bank B, Bank C issues a loan to A so that it can pay bank B.
Do banks say "nah you can't use that coz you got it from him and he doesn't have it"?
Why would they make this not doable if it means keeping the ponzi system alive?

[Anonymous No.56401558]

>>56401540
exactly, small and medium sized banks are going to face much bigger problems because people will move their funds to bigger banks (flight to safety) and because bigger banks are paying more on deposits (to incentivise the former)

[Anonymous No.56401559]

>>56401513
If people decide to move money out of the bank into literally aknots anything else, or, the worst case scenario, something happening causing a mass panic which causes a bank run.

[Anonymous No.56401565]

>>56401559
>aknots
Almost. Jesus I need to go to sleep.

[Anonymous No.56401585]

>>56400793
Not comparable with Estonian inflation.

[Anonymous No.56401591]

id like to bring some cheer to this otherwise DOWNER of a thread. sad!

[Anonymous No.56401605]

>>56401556
Chat GPT told me this:

Interbank lending does not directly increase the overall supply of money in the same way that banks lending to consumers or businesses does. However, it plays a crucial role in the financial system's liquidity and stability, and indirectly, it can affect the money supply. Here's how it works:

How It Affects Money Supply:

When banks lend to each other, they are essentially moving existing money around within the banking system, not creating new money. However, this lending is crucial for individual banks that need to satisfy withdrawal demands or meet reserve requirements while still being able to issue loans to consumers and businesses.
When banks are confident and willing to lend to each other, they are more likely to lend to consumers and businesses, which does increase the money supply. This is because, through fractional reserve banking, loans effectively create new money. When a bank issues a loan, it creates a deposit in the borrower's account, increasing the money supply while not reducing the bank's reserve holdings by the same amount.

Seems to me like all these banking systems (not including hyperinflation which is more of a problem for the populace) would be resolved if they just started issuing each other (the smaller more vulnerable banks) credit, thereby increasing the money supply and reducing contagion within the system.

[Anonymous No.56401610]

>>56401378
>risk free

[Anonymous No.56401741]

>>56401591
Oh well, finally some good news after all

[Anonymous No.56401767]

>>56401741
i wouldnt trust a building of that height. im sure it would get the job done but im not trusting skimping out on the floors at this point, you smell me

[Anonymous No.56401824]

>>56401767
Everything above the 5th floor should do the job, but you’re right I wouldn’t risk it either plus the higher the building the higher the chances someone manages to film it so we get some webms

[Anonymous No.56401858]

>>56401556
Because they would have to borrow at higher rates then their investments are yielding. I would agree it’s strange SVB didn’t have ANY repo transactions on its balance sheet, it had like a pittance of 400m. However, if they had used rolling overnight lending transactions using the bonds they would have sold as collateral to back the overnight repurchase agreements, they’re still completely fucked because overnight rates are 5% while long term bonds are only 4%, they’d be fucking hemorrhaging money due to inverted yields

>>56401605
ChatGPT forgot about the fed repo facility which creates money supply monkanigga kek

[Anonymous No.56402109]

>will soon surpass Italy

Oh nonononono

[Anonymous No.56402167]

>>56401395
Why is housing so expensive?
> I'd like to borrow 1mm to buy bonds
>> fuck off
> I'd like to borrow 1mm to buy a house
>> sure thing
> id like to borrow 1mm to start a business
>> put your house up as collateral

[Anonymous No.56402207]

>>56401422
Normally yes but the physical market and paper market are 2 entirely different entities and the paper Jews dictate the price because they cannot touch the physical. It melts right thru their hands

[Anonymous No.56402210]

>>56401483
it's only a bad thing if banks are feeling a liquidity crunch. banks invest some of their funds in long term bonds. they bought these bonds years ago, back when yields were much lower. today new bonds have higher yields, meaning that old bonds are worth proportionately (much) less. after all, who would buy a 0.5% bond on the secondary market when you can buy a 5.0% bond?

if banks need immediate liquidity they might be forced to dip into these bonds that they purchased years ago, thereby selling them at a large loss. as it stands, these losses are all unrealized (paper) losses for the vast majority of bands because they haven't been forced to sell. to date, only retarded banks like Silicon Valley Bank have been forced to sell, due to their mismanaged liquidity.

[Anonymous No.56402274]

>>56402167
Unlimited bonds, limited houses, unlimited businesses. You can see the pattern

[Anonymous No.56403934]

>>56401378
>risk free

[Anonymous No.56404002]

>>56402109
>UK
What's going on over there?

[Anonymous No.56404058]

>>56401504
SVB would have been fine but all the well connected tech VCs privately conspired to run on the bank, knowing daddy government would bail them out. All is forgiven.

[Anonymous No.56404168]

>>56400786
I really want 6-7% desu. Gonna be so sweet locking that in for 30 years. But don't thibk it will go much over 6% if it even goes past 5.5% which I doubt.

[Anonymous No.56406338]

>>56401858
>the fed repo facility which creates money supply monkanigga kek
It creates reserves on the bank's account with the central bank (fed in the US), it isn't money, because it can't leave the central bank. When the bank lends against that reserve, the newly created money is money.

[Anonymous No.56406355]

>>56400786
I remember doomposters losing their mind when yields went above 2%

[Anonymous No.56406395]

>>56400985
That is extremely anti-semetic of you.

[Anonymous No.56407028]

>>56400793
You dont get it.

> one year 11%
> vs THIRTY YEAR 5% BONDS
Its insane. Its absolutely insane. As an economist, what happened was
> massive money printing (money supply increased)
> kill off global economy with economic wars (GDP reduce)
> consequence INFLATION
ONE YEAR you had inflation. Its already down to 2-3%.
But the market yields that the fed will have *5%* ON AVERAGE FOR THE NEXT THIRTY YEARS. THIRTY. FUCKING. YEARS. AT. FIVE. %.

Thats obviously not going to happen. rather, China, Japan, and evryone who can realized that US bonds are NOT save, so they DUMP it, which causes us govt yields to rise.
Since these yields compete with the real economy (why invest in any real world project that yield 5% or less when you can get riskless at 5% as well), this has the effect of killing the economy, reducing GDP even further.
At some point everything collapses and then the FED has their Wile E Coyote moment and says "uh oh" and then yields collapse again.

For everyone with spare money - its a fantastic time to buy US Bonds. The downside is limited (lets say it can at most drop another 1.5%, multiply that with the duration of your bonds and thats the max loss, e.g. 20 year duration TLT has max 30% MtM loss which will just be temporary anyway until the market reverses)

[Anonymous No.56407068]

>>56400786
Why don’t they just buy these bonds at 5%?

[Anonymous No.56407120]

>>56407028
Most soijak post I've read all day

5% interest is only a 4x over 30 years, it won't beat inflation which is why people will still invest in real businesses

[Anonymous No.56407354]

>>56407120
No you STUPID IMBECILE. YOU DONT GET HOW BONDS WORK
5% 30Y going down to 4% is a capital gain of +30% (1%*30, HOWEVER LONG IT TAKES) PLUS 5% coupon every year it takes.

If 30y rates go to 4% again in 3 years, you have made 30% + ~ 12%(4%*3).

[Anonymous No.56407368]

>>56407354
>If 30y rates go to 4% again in 3 years, you have made 30% + ~ 15%(5%*3).
fixed

[Anonymous No.56407392]

>>56404002
Dying economy

t.britbong

[Anonymous No.56407407]

>>56400786
>lose 30% ok the price
>b-b-but muh 5% divvies

Kys

[Anonymous No.56407427]

>>56400931
nothing ever happens anon. the quicker you learn that the faster youll thrive
>t.50 something year old fuck

[Anonymous No.56407428]

>>56401767
Lmfao…officially I think 25 feet and you’re dead.

[Anonymous No.56407705]

>>56401513
No reserve requirements for retail deposits. For participation in overnight operations you need reserves. Higher rates have destroyed the value of bonds. Literal billions worth of collateral has been wiped out in the last year.

[Anonymous No.56407723]

>>56401591
Probably jumped because his spic wife wgot fat and has brown eyes

[Anonymous No.56407740]

>>56407028
The US government is about to go broke, dude

[Anonymous No.56407762]

>>56404002
https://www.intereconomics.eu/contents/year/2023/number/3/article/pension-funds-and-financial-stability-the-case-of-the-uk-gilt-crisis.html