Free Republic

Over the weekend, amid populist howls of outrage that a bailout of SVB would promote moral hazard (in the end depositors did get bailed out with a full recovery, but other unsecured creditors oddly enough would get nothing, while the common stock is a doughnut), we said that while technically true, the events that toppled SVB and now SBNY as well, are really a subsidy for the big banks.Many view what's happening as a question of moral hazard and a bailout of small banks. It's really a subsidy of big banks: JPM was solidly green in Friday's rout https://t.co/GAlJJ2iSLI —...

Biden couldn’t have done a better job destroying the US economy if he tried. Earlier today, Moody’s dropped its rating for the Banking SEGMENT from stable to negative. This was a huge event that those in the banking and finance areas know is a very big deal. Moody’s doesn’t downgrade entire segments without much thought and discussion on the matter. CNBC reported: “We have changed to negative from stable our outlook on the US banking system to reflect the rapid deterioration in the operating environment following deposit runs at Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank (SNY) and...