Brace yourselves, the banking crisis is just getting started

Yahoo Finance ^ | 5/5/23 | Ben Marlow

[CFW]

If Jamie Dimon was pondering a career change as a fortune-teller, he’d be wise to stick to the day job. On the other hand, if someone of Dimon’s stature could be so wrong about the banking turmoil that continues to sweep across the US, a cynic might ask whether he was still the right person to be running one of the world’s largest financial institutions, particularly when that organisation is right at the centre of Government-led efforts to prop up the whole system.

Having ridden to the rescue of California lender First Republic over the weekend, JP Morgan’s superstar boss had a message for financial markets: its shotgun takeover of First Republic heralded the end of the crisis. He should know better than to be drawn into the realms of speculation about things he has no control of but then Wall Street is so deferential to figures like Dimon that they start to believe they can walk on water.

[griswold3]

CBDC

[wny]

so....when there is only 1 or 2 or 3 mega-banks, in the pocket of the government - then what?

they can pay you zero -or less - on your deposits. charge any service charge they want - say 5% - on every check or electronic transaction....where will you go?

[Alberta's Child]

Not all bailouts are the same. There’s a big difference between bailing out a bank by covering their bad loans (2008) and bailing out a bank by guaranteeing the value of their reserves (2023) — especially when the reserves in question are long-term U.S. Treasury notes.

[Theoria]

Huge kre buy yesterday.

[Brian Griffin]

“30-year fixed-rate mortgage”

This is because government-created entities buy up and often hold such mortgages.

Fannie Mae shares fetch about 43 cents each according to a google search.

[alexander_busek]

Exactly. It’s about enforcing ESG on all of us. First they must eliminate all the small and medium size banks they don’t control in flyover count[r]y.

Looks more like the banks currently failing were all already 1) firmly adherent to ESG, 2) large (not medium-sized or small), and 3) headquartered on the West Coast.

Regards,

[alexander_busek]

[...] they can pay you zero -or less - on your deposits.

We've already had that!

Regards,

[edhawk]

Mortgages are packaged and sold everyday. No bank is going to hold an underperforming loan 30 years.

[deport]

Can you post it in English?

**********

Hell we are all just humans or so it is claimed.
We can all talk goofy - jumbo at times.

[cymbeline]

“All by design. You see, they want us poor, and they want us dead.”

Bill O’Reilly was on Hannity radio the other day. He says our current government wants to push the economy into a crisis and then it can declare an extreme emergency and grant itself all sorts of powers over us.

[Alberta's Child]

And in many cases the mortgages are packaged and sold to other banks. I believe this was one of the underlying problems with Silicon Valley Bank.

[Brian Griffin]

I was considering a KRE exchange trade fund (ETF) holding regional bank stocks buy myself.

I held off because big money doesn’t dump stock without good cause. Rich folks and financial entities can take the time to read the 10-Ks of dozens of regional banks.

[southernindymom]

Local Credit unions..... they are member owned.

[Brian Griffin]

“Looks more like the banks currently failing were all already 1) firmly adherent to ESG, 2) large (not medium-sized or small), and 3) headquartered on the West Coast.”

The San Francisco office market might be improved by:
1. Pelosi calling the DEA to
a. close down the California pot shops
b. monitor big electric bills
2. California jacking up alcohol and tobacco taxes

A shortage of pot and high booze and cigarette taxes would making living in a tent in downtown San Francisco less attractive.

Pelosi could change federal law with Republican help so people who have lived unlawfully on government or private land no longer qualify for Medi-Cal or EMTALA.

Pelosi could clean up her city and restore the vitality of San Francisco and California banks, but she is letting her city suffer and California banks be bought out by out-of-state banks.

[fr_freak]

Bill O’Reilly was on Hannity radio the other day. He says our current government wants to push the economy into a crisis and then it can declare an extreme emergency and grant itself all sorts of powers over us.

Well, that certainly would fit the pattern of behavior: climate change crisis, "pandemic" health crisis, civil unrest crisis (both BLM/Antifa and mass shooters), energy crisis, homeless crisis, border crisis. Why not economic crisis? All to push the people to the point where they will embrace full governmental control just to feel safe.

[Theoria]

Down almost 40% ytd. Sorry, I cannot resist on buys like that. I’m a sucker for those.

[sauropod]

.

[alexander_busek]

Sorry: You quoted my posting, but your reply seems a little "off-target." I need no lecturing about chaotic CA policies.

I think that we are all agreed here that 1) Pelosi is a joke, and 2) San Francisco should be renamed "Gomorrah-by-the-Sea."

But maybe you were just "chiming in..."

Regards,

[Brian Griffin]

“I noticed a few years ago that there are as many bank books a cure as pharmacies.”

That probably is google autocorrected English for:

There are about as many bank branch offices in my town as as there are CVS and Walgreens pharmacies.

[EBH]

it is called competition...

I am not in favor of monopolistic banks.

People are about to learn an important lesson, and they will learn it too late.