Posted on 03/12/2023 4:34:10 PM PDT by Angelino97
How is that possible?
The invention of the printing press largely boosted Western Civilization some centuries ago....
It’s not.
And gm paid us all back too
smoke and mirrors...
People lie.
*sigh* the rich always get bailed out, it sickens me.
Too big to fail is BS
anyone stupid enough to have more than the insured $250,000 in that bank deserves to lose it, and since I know there is like a nearly 99% chance they are all liberal techies, I have zero sympathy for them.
They write it, they say it, the media repeats it, it IS.
Obama’s staash?
Gotta keep their donors happy. I hate these crooks and the ill informed scum who support them.
“How is that possible?”
Easy, there are 2 protection levels for banks:
1: $1.00 to $250,000 - FDIC Basic Insurance
2: $250,001 plus - DNC Insurance at taxpayer expense (if DNC donations are sufficient).
It became clear today that SVB qualified for both.
Such a creative NON bailout.
The Fed can create money with the click of a mouse. Perhaps that’s the Sugar Daddy protecting the taxpayer.
The scenario I envisioned involves the Fed purchasing the low-interest bonds — which had lost a lot of value as interest rates have risen — at face value. This would give SVB’s custodians more than enough cash to cover all the bank’s deposits.
> How is that possible? <
I’m just making a wild guess here. SVB held a lot of bonds that are now worth much less than face value (when interest rates rise, older bond prices fall).
Maybe the Fed will be buying those bonds at face value. Hey, we bought a $1000 bond for $1000. The taxpayers have lost nothing!
No matter that this $1000 bond is only worth $500 today.
Shareholders get screwed...That is ESG in a nutshell. Have no investments left as businesses fail and everybody gets paid BUT SHAREHOLDERS.....
DNCI is very cheap at the moment. SVB’s policy premium was much lower than FTX. But maybe SBF is a real stupid shite, and didn’t know the going rate.
If I were to guess, I’d say FR is filled with people who are government employees (or retired government employees) and don’t have a clue about how business works.
Banks will probably skim it back with something approaching negative interest rates on Joe Average’s (aka Joe Taxpayer’s) accounts.
Orca Winfrey and Prince Waaaagh are protected....
“SVB’s policy premium was much lower than FTX.”
Not just the bank, but also its depositors, are a factor, at least according to Angelo Corleone, Director of the DNC Insurance Department.
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