Posted on 03/25/2023 12:45:06 PM PDT by CFW
Billionaire investor Bill Ackman said that the Federal Reserve’s latest decision to raise interest rates by 25 basis points, combined with Treasury Secretary Janet Yellen’s remarks that there are no plans for unlimited deposit guarantees, was a “big mistake” that puts more pressure on smaller banks and sends the economy toward a “train wreck.”
Ackman issued his warning in a series of tweets over the course of the past several days, after the Fed on Wednesday raised interest rates by a quarter of a percentage point and Yellen told lawmakers at a Senate hearing that there were no immediate plans for a broad expansion of deposit insurance to guarantee balances above the $250,000 coverage cap.
While Yellen acknowledged that there could be “reasoned discussions” on whether the $250,000 guarantee lid should be raised as part of long-run systemic reforms, a move like that would require congressional approval and she has “not considered or discussed anything to do with blanket insurance or guarantees of deposits.”
(Excerpt) Read more at theepochtimes.com ...
https://www.theepochtimes.com/small-banks-see-record-drop-in-deposits-after-svb-collapse_5149400.html
Deposits at America’s small banks fell by a record amount in the week ending March 15 as the collapse of Silicon Valley Bank (SVB) spooked depositors and led many to withdraw their savings.
Data from the Federal Reserve shows that deposits at small banks—defined as those smaller than the biggest 25—dropped $119 billion to $5.46 trillion, more than twice the previous record drop.
Deposits at large U.S. banks, meanwhile, rose $67 billion in the week ended March 15, reaching $10.74 trillion.
This suggests that bigger banks, often seen as “too big to fail” and as more likely to get a bailout in case of trouble, are the beneficiaries of the deposit shakeup.
BidenDepression 2023
Oh, and World War III
Don’t overlook BRICS expansion. Brazil, Russia, India, China, and South Africa are courting African nations, and Mexico, among others.
I think there is ALWAYS another financial collapse (and another “totally necessary” taxpayer-funded bailout) on the horizon. The exact timing is the big uncertainty.
We must end the “too big to fail” mantra. It should have never been declared in the first place.
There is nothing capitalistic about a bank that privatizes profit and publicizes losses. It encourages reckless behavior but then again much of our economy is built on recklessness thanks to the Federal Reserve and the revolving door between the big banks and Wall Street and our bureaucracies.
Don’t be surprised if it does not happen prior to the 2024 election. The left will look for any crisis they can do so that they can retain power.
I’d say the plan is to break smaller banks and reinforce larger banks, which are in bed with big government.
And illegal alian invasion, and inflation, and shortages, and and...
https://www.crainscleveland.com/economic-outlook/federal-reserve-boosts-key-rate-quarter-point-amid-banking-woes
At the same time,
2) The Fed opened wide the 'Discount Window' - where insolvent banks (like SVB) can borrow freshly printed money from the Fed - and that activity just skyrocketed from $4 Billion on March 9 to $153 Billion Wednesday.
https://www.americanbanker.com/news/feds-super-discount-window-issues-12-billion-of-advances-in-three-days
In short, Fed is screwing the little guys with higher interest rates while bailing out the elite guys at the Discount Window.
The WH and Fed continue to say they are curbing inflation - it's laughable. They're clearly not interested inflation with these conflicting policies -- they are playing politics and helping out favored donor groups.
Retail banking is one of the few areas of the U.S. economy where the game is rigged in favor of the customer.
🔝🔝🔝
Expecting just that
Yep
I get the sense from Ackman that he wants BAILOUTS for things closely connected to his interests
“I’d say the plan is to break smaller banks and reinforce larger banks, which are in bed with big government.”
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I agree. I’m convinced the “banking turmoil” is deliberate. The government is great at creating a crisis and then swooping in with a solution. Their solution always takes more power for themselves and takes more freedom away from the citizens.
I think their plan is to basically force people to move their money to one of the four largest banks, thereby putting stress on regional banks and causing more to close. They will then by regulation bring in government-controlled digital currency. It will be introduced as voluntary until suddenly it is mandatory.
Lower rates so my investments can grow, screw the common man, savers, and the inflation they need to bear the cost thereof.
Free money party is over, time to deal with the hangover.
I didn’t need a “billionaire investor” to tell me that. I knew the minute the Turnip stole the election.
I'm of the camp that feels God will use natural disasters to destroy the USA, but I pray judgment is withheld until after I've departed this earthly realm. If it doesn't, all I do is say, "See, God warned you and you refused to listen, ye stiff-necked and rebellious people."
Good point. My kids get screwed. Their kids get rich.
The older I get the more corruption I see. I have never gotten past the 2008 housing bubble debacle but few seem interested in retrospection about it even as we see the same game being played over and over. It never really stopped did it? QE for thee but not for me is the new government business model.
I picture Yellen cowering under her Blankie, muttering, “They didn’t tell me it would be so HARD…”
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