Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

Skip to comments.

Strange Days! US Mortgage Rate Falls To 6.97% As Banking Crisis Persists (Yellen, Bank Consolidations, Bailouts And The Return Of QE)
Confounded Interest ^ | 03/18/2023 | Anthony B. Sanders

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 ...


TOPICS: Business/Economy; Food; Government; Politics
KEYWORDS: bailout; banks; biden; yellen
Knucklehead Joe and Statist Yellen to the rescue!!
1 posted on 03/18/2023 10:18:23 AM PDT by Kaiser8408a
[ Post Reply | Private Reply | View Replies]

To: Kaiser8408a

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?


2 posted on 03/18/2023 10:26:24 AM PDT by DesertRhino (Dogs are called man's best friend. Moslems hate dogs. Add it up..)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaiser8408a

WooHoo! Joementia pulls our bacon out of the fire yet again. He may be a white boy but he sure is stoopid.


3 posted on 03/18/2023 10:28:20 AM PDT by rktman (Destroy America from within? Check! WTH? Enlisted USN 1967 to end up with this? 😕)
[ Post Reply | Private Reply | To 1 | View Replies]

To: rktman
No matter what they do. No matter how outrageous. They know they can steal or win any/all branches of government within 2-3 elections or less and do it all again and again. It's the perverse incentive for the perverts.

Every nation gets the government it deserves.

4 posted on 03/18/2023 11:35:59 AM PDT by Theophilus (It's fake and defective)
[ Post Reply | Private Reply | To 3 | View Replies]

To: Kaiser8408a

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.


5 posted on 03/18/2023 11:48:15 AM PDT by Vermont Lt
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaiser8408a

Wasn’t DB on the rocks a few years ago? I stopped paying attention to them a while ago.


6 posted on 03/18/2023 11:51:58 AM PDT by Vermont Lt
[ Post Reply | Private Reply | To 1 | View Replies]

To: Vermont Lt

“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.


7 posted on 03/18/2023 11:52:16 AM PDT by cgbg (Claiming that laws and regs that limit “hate speech” stop freedom of speech is “hate speech”.)
[ Post Reply | Private Reply | To 5 | View Replies]

To: Kaiser8408a

Is this like slo joe claiming gas prices are down?


8 posted on 03/18/2023 2:45:40 PM PDT by cableguymn
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson