Posted on 05/02/2023 7:02:24 AM PDT by Red Badger
Are they still Too Big to fail?
All we ever seem to do these past thirty years is kick cans down the road...
And it’s just starting. Thank you very much to the radical Democrats.
The Fed is playing a dangerous game.
They get one bank, JP Morgan Chase in this instance, to ‘buy’ the failed bank(s) that pop up.
That does not ‘fix’ the problem, it merely take sit off the front pages and TV screens of America, and John Q. Public thinks ‘All is well!’.
But it’s not.
They have simply taken a poison pill and put it into a healthy bank.
The bad loans that the failed bank made are still there, the depositors’ and investors money is still gone, and the Government is still on the hook................
Whoa!!!! Remember what happened to W and the GOP in 2008 because of the financial crisis and all of the laws that were ushered in its wake to prevent the excesses of greedy Republicants and their billionaire buddies?
2023 can’t be worse ...it has to be fake news ... FJB is in office, these are the good old days, and once MAGA is eliminated, another 1000 J6ers are hauled to DC jails to wait their turns, and Trump is no longer viable, things will be even better. /S
Yes and, more so, No
This is not a “bad loan” problem, this is a “market price of good loan has declined due to yield curve move” problem.
In normal times banks like First Republic would not have failed, yes they made some bad decisions buy purchasing long term bonds that plummeted in value as interest rates have risen, but a lot of this banking failure is planned IMO, to consolidate banking into 4-6 large banks that more easily controllable and ushering in a CBDC.
Less than 1 year ago First Republic stock was worth more than $170/share, a couple of days ago it was below $3/share.
This is the game, the business channels and media start talking about banks that are vulnerable to interest rate rises, First Republic gets mentioned, depositors get nervous and start withdrawing their money, that gets reported and the run continues, the value of the bank goes to near Zero, the big banks wait until the bank fails, the government seizes the bank and sells the good parts to the big bank, the bad parts get absorbed into the FDIC and Federal Reserve aka on the backs of the taxpayers, basically privatizing the profits and socializing the loses.
Look for this to happen again in the next 1-2 weeks, another bank will be in trouble after rumors begin to float, the run will start and the bank will fail, forcing more consolidation.
All the banking BS is by design and on purpose just like the Covid jab and booster genocide. The Black Hats had the jabs and boosters BEFORE Covid. Anyone doubting that, do your research. We’re being lied to and played 24/7. We’re also living in 24/7 psyops in the current WWIII no one is talking about. Never Again is Here Again.
Ask yourselves why the US Congress has not stopped the poison Covid jabs and boosters that are murdering and maiming millions when the data and proof have been available for the past three years. How many politicians in office are guilty of massive corruption and treason?
“I’m from the government, and I’m here to help you.” Ronald Reagan: “The top 9 most terrifying words in the English Language”.
So it is time to continue to execute a plan that reduces my exposure to the follies of “the bank”. Green pieces of paper to cover short term failure. Hard assets to cover an extended outage. The balance into safer assets. Achieve zero debt, which reduces the expense on interest to the lenders. I remember COVID-19 shutdown well. I remember 2008, too.
Couple the bank news with the news that Social Security is only good for another 10 years, and Medicare a little longer — it’s going to be an interesting roller coaster ride.
Biden and the Democrats want to play “Chicken” with the debt ceiling, want to keep spending at ruinous rates and covering the shortfall with higher debt and higher taxes. I wonder when the United States will declare bankruptcy?
Most commercial real estate (especially office buildings and shopping malls) was junk before the interest rates went up—now it is toxic junk.
“Are they still Too Big to fail?”
Could the question be ‘Are WE too big to fail?’ because we taxpayers are the ultimate bailer-outers.
I hope the writer took into account that our currency is now Zimbabwean Terradollars, not the dollars of 2008.
Very Different today.
2008 was an election year with a Uniparty Republican in the WH.
2023 is not an election year and a Democrat anointed by the gods in Washington is in the WH.
do not be alarmed
they are still in the destruction stage of
build back better
Silicon Valley Bank and First Republic Bank didn’t fail because of their exposure to “bad loans.” They failed because they held billions of dollars in long-term bonds in their reserves, and they had to sell those reserves at a huge loss (due to rising interest rates) when their depositors began pulling all their money out of the banks.
A long-term bond is essentially a ‘loan’ to the bond issuer.
If interest rates rise, you are screwed..............
Looks like Pac West is the next bank that gets absorbed into a too big to fail Wall Street Bank
Cue the ‘JAWS’ theme.......................
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