Posted on 03/18/2023 10:18:23 AM PDT by Kaiser8408a
Strange days, indeed.
Despite endless promises from Washington DC that there would never be another bank bailout, the Biden Administration bailed out Silicon Valley Bank (SVB) by removing the $250,000 cap on deposit insurance. Then Treasury Secretary Janet Yellen added that in the future, only banks that posed SYSTEMIC RISK to the economy will be bailed out. Translation: only the big four Too Big To Fail (TBTF) banks will be bailed out. Meaning that the Biden Administration prefers big banks to community banks. “Middle-class Joe” loves BIG Pharma, BIG defense, BIG tech, BIG media and now BIG banks. He should rename himself “Big Joe” Biden for the 2024 Presidential election.
Of course, we are aware of The Fed’s about face on shrinking their balance sheet (green line). While Bankrate’s 30-year mortgage rate has now declined below 7% to 6.97%, it has only fallen -15 basis points since the recent peak of 7.12% on 3/2/2023 when the 10-year Treasury yield was 4.056%. So, the 10-year Treasury yield has fallen -62.7 basis points since 3/2/2023 while the 30-year mortgage rate dropped only -15 basis points.
On the European banking front, Credit Suisse is kaput and both Swiss Bank and Deutsche Bank are considering buying the assets of Credit Suisse. In other words, MORE bank consolidation.
The KBW bank index continued to fall despite the bailouts of SVB and Signature Banks. But at least total returns on Treasuries and MBS that banks hold increased with the return of QE!
Yellen and Biden compete for the Knucklehead Of The Century Award. While not as sloppy as the sudden Afghanistan withdrawal, bailing out the Silicon Valley elites will not end well.
(Excerpt) Read more at confoundedinterest.net ...
It’s a 2008 crash in stealth mode. They are going to bail out the banks as much as they want with quantitative easing. Only they won’t call it that. They’ll just call it making everybody whole. But the reality is, they either have to let the banks crash and suffer the consequences, and take us back to fiscal sanity, or paper it over even more. Does anybody doubt what they’re going to do?
WooHoo! Joementia pulls our bacon out of the fire yet again. He may be a white boy but he sure is stoopid.
Every nation gets the government it deserves.
Oh good…a few knuckleheads in CA make shitty investments and the Fed will overreact and stop raising rates. Inflation will come back. Our government is run by fools.
Wasn’t DB on the rocks a few years ago? I stopped paying attention to them a while ago.
“Our government is run by fools.”
Yellen is evil but she is no fool.
She just spoke the “secret part” out loud.
.Gov is watching the backs of the elites, and everybody else can go pound sand.
Is this like slo joe claiming gas prices are down?
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