Posted on 05/06/2023 6:23:09 AM PDT by Kaiser8408a
Deposits used to be insured to a set dollar amount. Now, the amount of deposit insurance seems to be tied to who the depositor is.
It looks like the Federal Reserve has just turned on the garden hose and all depositors are covered.
That could change at any time of course.
We are ruled by a cabal.
That’s because depositors aren’t withdrawing money to hide it under the mattress. They’re withdrawing money from smaller banks and moving it to the larger ones.
If you are paying more than 6% interest come see us at Smaller Bank, we can probably help you.
Banks didn’t increase rates despite inflation taking off. I’m sure I’m not alone, but I’ve put a lot of money in T-Bills through Treasury Direct. 1 to 6 months bills are now all yielding over 5%. My USAA deposit rate is still 0.01%. Be a moron to keep anything there, these banks did it to themselves.
.
Hi, is this Mrs. Bank President?
Yes, who are you?
Janet Yellen.
Why are you calling?
I have a problem and I would like to trade $100 million of your 2% federal debt for $95 million of 3.5% federal debt.
Why would you want to do that?
So the debt limit is not exceeded.
You have my yes, let’s get it done.
There is only one way to stop inflation and that is to produce more goods.
Increased production also results in more jobs, job security and an all around better life.
Raising interest rates creates job losses, much lower living standard nd misery for most.
The federal reserve is a scam.
Wu-flu should have taught the voters a lesson. That it did not will destroy our nation.
Dear Probable Credit Card Holder:
We are Regional Bank. If you are are paying on your credit cards we can probably have you paying less. Stop by one of our branches and let’s see if we can help you.
By the way, do you have a car loan?
Yes, from Shyster Motors.
What is the interest rate on that?
Around 10%.
If you consult with Mrs. Loan Officer over there she would probably be able to save you some money every month.
“There is only one way to stop inflation and that is to produce more goods.”
Nonsense!
Inflation can be stopped very easily. Simply tax all personal net income above $1 million (except Medicare sourced income so doctors will not stop working) at 100% until the CPI has not increased more than 6% in the prior two calendar years.
Every CEO paid more than $1 million will fight like a tiger to hold the line on wages and salaries and only agree to essential supplier price increases.
The government and tax are your go to solutions? Think about what that makes you.
“They’re withdrawing money from smaller banks and moving it to the larger ones.”
It has been my experience that newer and larger banks tend to have the most problems.
About 13 years ago I got burned on Citi stock and my neighbor on BoA stock. Several relatively new banks in my Florida county got taken over.
“The government and tax are your go to solutions? Think about what that makes you.”
I’ve been paying property tax for about 35 years. I haven’t heard one politician promising to stop that.
Larger banks tend to be more stable because their broad customer base and diversified reserves make it easier to weather a storm.
The combination of a newer AND larger bank seems to be a recipe for disaster. Silicon Valley Bank, for example, was the 16th largest bank in the U.S. when it folded. And yet it only had about 12 branches and 28,000 depositors. Once a bunch of their largest account holders began withdrawing their money, they couldn’t keep up with the flood of outgoing cash and had to draw on their dwindling reserves just to make ends meet.
“The government and tax are your go to solutions? Think about what that makes you.”
The military and veterans get a lot of respect around here.
They are compensated for their service by tax money (and by borrowed money [which constitutionally should get paid back using tax money]).
“Larger banks tend to be more stable...”
Deutsche Bank
Credit Suisse
Citi ~2008+
BoA ~2008+
https://en.wikipedia.org/wiki/Troubled_Asset_Relief_Program
2020:
Local governments are in tough financial shape.
What can we at the Federal Reserve do?
Cut the interest rate so property prices (and property taxes) will soar.
Agreed.
If I wasn't concerned about staying mobile I would be tempted to acquire some fully depreciated and chip-free farm equipment. That's going to at least hold its value.
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