This is huge news, but Market Watch does not report it correctly. The FDIC was supposed to sell the bonds in May. However, they decided to start yesterday. And, it is said, may accelerate the sales PRIOR to May.
This is huge news. There are more bonds to liquidate OTHER than the SVB bonds and the FDIC will not be able to get adequate value. The main thing to read is that they thought the FDIC was going to sell them in May, but decided to sell them EARLY. This means they KNOW something is going to happen to the markets real soon. Heads up.
To: MeneMeneTekelUpharsin
I figure they need some sort of crash for the CBDC rollout in July.
2 posted on
04/19/2023 7:15:47 AM PDT by
aynrandfreak
(Being a Democrat means never having to say you're sorry)
To: MeneMeneTekelUpharsin
fetched prices of about 85 cents to 90 cents on the dollar for the first batch of assets sold out of $114 billion seized by regulators last month This is exactly what caused the problem. Given that bank equity as a percentage of assets and liabilities is usually quite low, a 10-15% drop in asset prices is more than enough to make them technically insolvent.
3 posted on
04/19/2023 7:23:00 AM PDT by
PGR88
To: MeneMeneTekelUpharsin
2008 Deja vu?..........................
5 posted on
04/19/2023 7:24:46 AM PDT by
Red Badger
(Homeless veterans camp in the streets while illegal aliens are put up in hotels.....................)
To: MeneMeneTekelUpharsin
Actually, this is a good return!
6 posted on
04/19/2023 7:29:48 AM PDT by
ConservativeMind
(Trump: Befuddling Democrats, Republicans, and the Media for the benefit of the US and all mankind.)
To: ConservativeMind; aynrandfreak; PGR88; AndyJackson; Red Badger; BenLurkin; delta7; gloryblaze; ...
14 posted on
04/19/2023 8:27:13 AM PDT by
MeneMeneTekelUpharsin
(Freedom is the freedom to discipline yourself so others don't have to do it for you.)
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