Posted on 03/14/2023 7:54:54 AM PDT by Oldeconomybuyer
In a harsh blow to an already-reeling sector, Moody’s Investors Service on Monday cut its view on the entire banking system to negative from stable.
The firm, part of the big three rating services, said it was making the move in light of three key failures that prompted regulators to step in Sunday with a dramatic rescue plan for depositors and other institutions impacted by the crisis.
“We have changed to negative from stable our outlook on the US banking system to reflect the rapid deterioration in the operating environment following deposit runs at Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank (SNY) and the failures of SVB and SNY,” Moody’s said in a report.
(Excerpt) Read more at cnbc.com ...
Bonds are high risk.
High.
Short sellers must be drooling...
Get woke.
Go Broke.......................
The government tends to come to the rescue with fiat money.
One possibility is to shorten the terms on bank held federal debt when banks mark it to market.
A balanced budget amendment would send interest rates way down.
Maybe we should try to get some of our money back from the Ukraine...
So where’s the safest place to have your savings?
Banks, S & L’s or Credit unions?
Read this morning even the FDIC may only cover a portion of lost savings under the $250,000 threshold if the bank goes down. (Unless you’re an elite I suppose)
Not in fiat currencies.
FJB
Btt
"We are advising our clients to put everything they've got into canned food and shotguns" (Gremlins, 1984)
The FDIC has never failed to pay 100% of insured accounts. Never. Not a single FDIC insured bank account has ever gone unpaid. Not one. Always 100% repaid.
What you “heard” is flat out wrong.
What changed their mind? They were so bullish on banks just a few weeks ago.
Moody’s? The same Moody’s that gave Silicon Valley Bank an “A” rating right up to the collapse?
The NCUA and the FDIC have NEVER not covered all of the accounts. Their insurance funds are still 100% separate from the Federal government, despite the independent entities (NCUA and FDIC) being full federal employees, as well. The two entities are effectively separated in the same way the Federal Reserve is.
The FDIC as the biggest responsibility if the two, and has always handled it as it was needed to be done, despite far more banks having issues than that of credit unions.
The FDIC has to clean up the messes of the Federal Reserve's and OCC’s disasters, while the NCUA is 100% responsible for it's own messes.
The FDIC is disallowed by law from being the primary regulator of banks over $10 billion in assets.
Thomas Massie
@RepThomasMassie
The last 5 days simplified:
A group of wealthy speculators got upset that their money ended up locked into a 10 year obligation at less than 2% return,
so they convinced government it was in everyone’s best interest to help them out of their jam at the expense of everyone else.
7:43 AM · Mar 14, 2023
Maybe we should try to get some of our money back from the Ukraine...
Wouldn’t that be nice?
Kind of like asking all of the CEOs, who had money in SVB, to get the bonuses back that they handed out, just before the collapse.
Things. Real things.
Land, property, gold, silver. Adjust the %'ages as you see fit.
Until the FDIC fails. Which it is in the process of doing right now.
A good signal of this is their coverage of 100% of the SVP depositors, according to reports 95% or so above the $250k FDIC limit. This *breaks* FDIC.
FDIC as an insurer works with limited bank failures and a $250k per depositor per institution limit, and insurance premiums paid by the bank.
With ALL of SVP made whole, precedent becomes policy. The only way for the FDIC to "cover" everybody to the max is for more FED/Treasury printing.
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