Posted on 10/16/2023 12:21:46 AM PDT by RomanSoldier19
The US debt situation is looking increasingly precarious, and corporate defaults are up as interest rates stay high, according to the International Monetary Fund.
The US's fiscal situation is the "most worrying" among all world countries, the IMF's research director Pierre-Olivier Gourinchas said in a press briefing on Tuesday.
(Excerpt) Read more at markets.businessinsider.com ...
Nobody cares.
Life is too absurd (circa 2023...) to worry about money.
We have reached the looting phase.
Just before the Silicon Valley Bank collapse, the top people in that company awarded themselves big bonuses, and gave themselves large private loans.
It will stay that way and get even worse until western governments STOP giving out money they don’t have to illegals, immigrants, migrants - whatever they want to call these slags of the third world for no substantive, value-added work.
When that happens, and it will, life in the US will get real interesting. And not in a good way.
It’s why the government wants to disarm us. They are willing to turn over the country in the next generation as long as THEY can live rich, in luxury and power until then.
When 50% of your depositors show up and withdraw their money, every bank in the USA will default.
Six months after the collapse, I still have not read one negative comment about SVB's loan portfolio.
Great...
Try 5% .....
it wasn't there loans , it was there bonds.
To make cash redemptions they had to sell at 2-3% loss.
They had no hedge for an upside move in yields.
I think it was a planned strike at the system ... and they knew the worst that would happen to them was .. bail out.
But if they got the dominoes falling ...well ...
Bankrupting the US is the communists’ plan.
Let me know when our fake dollars are equal to Zimbabwe dollars. Or better yet, Wakanda dookey nuts.
Isn’t there a “clawback bill” of some sort since 2009?
The Inflation Reduction Act was supposed to increase revenue by $60B/yr but we’ve lost 20% in the first two quarters. Seems .gov needs a new plan to pillage and loot.
The US Treasury 10 Year dropped to a record low 0.5% in late 2020, and the UST 3 Month was around 0.1%.
The transaction fee on a 0.1% hedge would cost more than the interest.
They had no hedge because they did not need a hedge.
Their bonds were all investment grade and fully performing.
They went broke because there was a panicked withdrawal, and because the FDIC and the US Treasury refused to cover their bonds at 100% par value.
At its peak it was something like the 15th-largest bank in the U.S. in terms of deposits, but only had about two dozen branches across the entire country.
The most ludicrous statistic about SVB I could find is that they had 8,500 employees — but only 40,000 customers.
If you think SVB is an outlier, prepare to be unpleasantly surprised. A lot of companies overhired in what they thought was going to be the biden recovery only to have started laying off since things aren't quite panning out. The unemployment numbers are going to be interesting in the coming weeks.
PNC Bank, which is comparable in size to SVB in terms of its deposits and its regional coverage, has more than 60,000 employees.
What? Somebody noticed?!
Sacrebleu!
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