Posted on 03/14/2023 8:30:00 AM PDT by SoConPubbie
If you look at the regulations that apply to large banks, they concentrate on capital adequacy. The severe stress test is 10% unemployment, near 0% interest rates, and a 50% downturn in the stock market.
Would SVB passed the capital adequacy test and the stress test? Probably yes - they had a lot of capital in ultra-safe treasuries.
The problem comes up with the opposite case - what if unemployment falls to 0% and interest rates are 10%? They’re not stress-testing that!
Fauxcahontas, the Buffalo Wing Woman, speak with forked tongue again. Somebody give her a beer.
Gray Beaver speak’um out a@@.
A habitual liar, just like Biden. She’ll say ANYTHING to pander to her delusional base.
Warren is an idiot. If the bank examiners had been doing their job, they would have put the bank under a restrictive agreement for their balance sheet mismanagement.
The problem was due to woke investing. Banks also suffer from regulations redirecting loans to blacks with bad credit and neighborhoods on the decline.
Rather than losing sleep this weekend trying to solve a huge banking crisis, Democrats put their time, effort, and energy only into how to spin it.
There is no connection to reality any more. In their minds it is impossible for liberalism to fail, all evidence to the contrary. It’s complete psychosis.
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