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.
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....
Does anyone else think Janet Yellen looks like Buddy Hackett in drag?
The money did not evaporate (like SBF crypto debacle). They have over-invested in low return bonds and instruments to the point they did not have or maintain enough cash on hand.
They were forced to sell some of those investments, which went to crap thanks to Bidenflation, prior to the maturity so they sold at a loss. This in turn started to drive down their stock price and then the bank run began and here we are because they were already cash poor. This creates panic and drives the stock price into the dirt.
I am skeptical about the taxpayers being spared the expense (and insult) of bailing them out because this would only be true if they had not been selling instruments at a big loss for very long. We don’t know. The sell-off prior to all of this by the executives tells me that they knew it was going to crash after they could not find “new investors”.
We will see and if I got something wrong above with what I understand about it I welcome any corrections.
They're sending Janet Yellen to "Keev" to ask Zelensky for a refund.
How is that possible?
**************
Through lies and legerdemain.
If there was run on money, doesn’t that mean that folks withdrew their money?
If so, who needs protection from any losses if they already got their money out?