Posted on 03/12/2023 6:53:19 AM PDT by marcusmaximus
Billionaire hedge fund manager Bill Ackman is forecasting 'economic meltdown' within hours of the banks opening up on Monday morning following the failure of Silicon Valley Bank.
Ackman is urging for the U.S. government to finally step in and protect all of the bank's depositors, warning inaction could lead to a ripple effect across other smaller banks within the industry.
The worry is that customers will rush to withdraw cash from their accounts fearing instability across the banking system with the very real possibility of a domino effect.
(Excerpt) Read more at dailymail.co.uk ...
This.
This is the downside of fractional lending - when people start to realize bank don’t have actual depositor’s money.
Sounds crazy to some but it’s always been true. They’re not even required to have reserves as of late.
There had to be an end to near-zero interest rates and no reserve requirements. Here it is.
> Yellen: “A deposit guarantee is not a bailout.”
Bismark: In politics never believe anything until it is officially denied.
Burn it down and start over.
Just because a bank doesn’t meet federal capital requirements doesn’t mean it lacks money to pay off depositors.
The bankers should be arrested like they didn’t do the last time.
Pond scum like Ackman will pull out all the scare tactics now.
SVB will be absorbed into Wells Fargo and depositors will be left whole.
SVB stock holders and many employees are up the creek
We can’t afford it Bill.
We sent all of our money the Ukraine…
It’s going to be a blood bath.
Furures trading opens at 15:00 today.
Ending single family zoning probably reduced the market value of California mortgages.
OR.....he can just do like Ubama did and go in and browbeat investors/creditors for ownership for whatever pet group Biden wants for 10 cents on the dollar and THEN bail it all out.....
Nice theft by government.....
For my preference, pay the $250,000 per deposit and screw the silicon valley techs who put in millions.....
Sounds like a threat to me.
This guy is always looking out for himself. Opra reportedly had $560 million in the Bank so maybe he is shilling for her. Maybe Yellen should have been more concerned about the strength of the US Banking system than going to meet the actor /leader of the Ukraine.
I think Broken has announced that there will be no bail outs. There’s already a run on Republic Bank. Monday should be interesting.
Bank runs under Biden
BidenDepression 2023
Half the country still won’t be able to figure it out
The banks only pay deposit insurance for $250,000 per account. Everyone knows this.
If bank owners can't handle their banks, they are taken over and the assets are sold and given to depositors, to the best the assets and FDIC can provide.
Bank owners need the haircut.
If depositors need money with implicit guarantees, they can have their excess monies in very short term investments, like four week T-bills.
So people invest in a woke bank to get returns above average and they don’t care about it being uninsured, but because they are rich, they get insured after the fact?
No thanks! Screw them all! If jobs are lost, McDonald’s is hiring!
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