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a big part of why theyre raising interest rates in the first place is to intentionally cause a little recession to cut or stop the increase of wages, basically to break labor. which they think will reduce consumer price inflation while keeping asset prices high
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Mar 13, 2023 14:03
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I'm sure the fat cat artists and crafts people paid by Etsy deserved that haircut, nevermind the morons dealing with an HR processor like Rippling who had their payroll stuck! (unironically though, I don't feel bad at all for all the cryptocurrency companies that just went to hell over this)
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Mar 13, 2023 14:04
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raminasi posted:or, it’s being done to protect general confidence in banking period, which is very much in the interest of both of those groups The companies that receive this money should be nationalized. Every dollar given above the insured FDIC value, or the total value given for uninsured accounts, should result in equivalent equity stripped from investors and founders and given to the government I hope the hypothetical doorman at Fart wouldn't object to this arrangement
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Mar 13, 2023 14:04
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mila kunis posted:I hope the hypothetical doorman at Fart wouldn't object to this arrangement i wouldnt
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Mar 13, 2023 14:05
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i heard there is a payroll provider named Rippling that was like "if this isn't fixed we can't process payroll for all of our clients". their clients are all over america, the one example i heard was a home care provider. poo poo like this is why there was no way the fdic wasn't going to do everything possible to make depositors whole. employees, management, investors, and vendors can eat poo poo though if 2008 onward has taught me anything it's that the system is what matters, not the players, and the powers that be will do everything they can to maintain the system* *crypto is not part of the system and thus all the crypto-friendly banks failing and being absorbed into non-friendly banks is ok by them
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Mar 13, 2023 14:07
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mila kunis posted:pretending that this is being done to save the poor security guards at Disruptr rather than ensuring VCs don't have a bunch of their investments don't go to zero overnight is some next level shamelessness. it kinda is though, by way of stabilizing banking across the board; if they wanted to bail out the shareholders they could have when it comes to this kind of maneuvering, the only answer to “why” is “because they wanted to”
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Mar 13, 2023 14:07
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mila kunis posted:The companies that receive this money should be nationalized. Every dollar given above the insured FDIC value, or the total value given for uninsured accounts, should result in equivalent equity stripped from investors and founders and given to the government okay sure i guess
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Mar 13, 2023 14:08
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that equity would just get auctioned off again though, the us govt is not in the business of running fart apps
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Mar 13, 2023 14:09
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the financial system understanders have logged the gently caress on i guess, myself included
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Mar 13, 2023 14:10
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Captain Foo posted:the financial system understanders have logged the gently caress on i guess, myself included we never logged out
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Mar 13, 2023 14:12
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Captain Foo posted:okay sure i guess Given that this is obviously not going to happen, what does that say about who holds power here and why dismissing the idea that this is just rich people being made whole for free is loving stupid? That this isn't something to be angry about?
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Mar 13, 2023 14:15
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i think i mostly post about this because the events and stakes are way more pleasant to think about than a lot of the other real news of 2023. a little bank run, a lovely tiny parcel of news one can argue about on the internet a bit without despair.
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Mar 13, 2023 14:16
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Joe Biden in an emergency press conference this morning: "there's no reason to panic" the rest of us: https://www.youtube.com/watch?v=KojYatpLPSE&t=9s Internaut! fucked around with this message at 14:20 on Mar 13, 2023 |
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Mar 13, 2023 14:17
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AnoHito posted:then the problem isn't capitalism, as you keep shouting endlessly into the void, it's banks that aren't controlled and operated entirely by the government, a feature not even remotely unique to capitalism capitalism is still a problem, there can be more than one
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Mar 13, 2023 14:19
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again, this isn't about keeping rich people whole (in fact, investors that owned svb stock are losing money) this is about preserving the system through which they skim off the top of our labour
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Mar 13, 2023 14:21
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mila kunis posted:The companies that receive this money should be nationalized. Every dollar given above the insured FDIC value, or the total value given for uninsured accounts, should result in equivalent equity stripped from investors and founders and given to the government
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Mar 13, 2023 14:26
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this thread is a mix of cool lefties and practical suburban dad explaining types
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Mar 13, 2023 14:28
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I'm not even going to quote the post because we're clearly getting nowhere with it but 1) SVB shareholders did get wiped out and 2) the fed is not giving anyone money with the credit facility. They're basically just doing a repo trade without having the same sort of asset risk you'd normally get because they never need to sell the bonds for market value, so they don't need to margin call the recipient of the cash and will always get back 100 for the 100 they lend idk if they're accruing coupons or what, if they are on the fed side then they'd be *making* money on this in an abstract sense
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Mar 13, 2023 14:38
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lol @ nationalizing a company for giving them the money they deposited and that should have been theirs if the banks weren't run by morons who kept arguing in favor of deregulation and then getting it.
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Mar 13, 2023 14:41
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since the banks received the face value of the bonds that they were going to get anyway in eight years, i wouldn't consider this a bailout. the bailout will be in a year when the fed is just going to say 'hey remember when we said you had to pinky swear that we'd do the reverse trade a year later? just forget about that' and the banks aren't going to have to buy their low interest bonds back
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Mar 13, 2023 14:42
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yeah, and/or in 20 years where that trade facility is somehow still running and now integral to the system.
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Mar 13, 2023 14:44
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mila kunis posted:Given that this is obviously not going to happen, what does that say about who holds power here and why dismissing the idea that this is just rich people being made whole for free is loving stupid? That this isn't something to be angry about? in whose interest is nationalizing disruptr, exactly? nobody in the world wants the government to own that. (do you?) and that's not even getting to MononcQc posted:lol @ nationalizing a company for giving them the money they deposited and that should have been theirs if the banks weren't run by morons who kept arguing in favor of deregulation and then getting it.
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Mar 13, 2023 14:52
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if there's one positive of all this it's that it's forcing me to remember all the finance stuff I'd forgotten because I don't work with any of it directly anymore (I used to support actual repo trading systems way way way back) thanks Peter Thiel 
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Mar 13, 2023 14:53
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rotor posted:i still cant believe cremnob posted for the first time in years to tell us that actually Peter Thiel was good i know it's been a while, but i think you could believe it if you remember what their posts were like before
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Mar 13, 2023 14:53
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Brrrmph posted:this thread is a mix of cool lefties and practical suburban dad explaining types that's yospos
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Mar 13, 2023 14:58
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Shame Boy posted:that's yospos
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Mar 13, 2023 15:01
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The irony here is the fed raising rates to punish the working class for making too much money instead is causing multiple banks to fail. So I guess we'll done to them.
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Mar 13, 2023 15:04
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HSBC bought the UK branch of SVB for £1.
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Mar 13, 2023 15:07
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they should have raised rates a long while ago to flatten out housing price and loving runaway lending that gave rise to so many idiot poo poo startups in the first place, or alternatively built more affordable housing or curb-stomped commercial real estate of residential housing long ago to control prices better.
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Mar 13, 2023 15:10
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https://www.nyse.com/trade-halt-current holy moly lol i was supposed to have an interview today at 10 that got apparently called off because of this, but i didn't realize it's that bad
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Mar 13, 2023 15:11
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it's just returning an error for me. that's a good sign, right?
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Mar 13, 2023 15:13
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Mar 13, 2023 15:15
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well, at least we know the breakers work...
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Mar 13, 2023 15:16
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seems like a lot of trade holds on bank shares
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Mar 13, 2023 15:16
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 who would have thought that incentivizing this behavior might result in this lol seems bad
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Mar 13, 2023 15:17
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No error for me, but uh ... WAL did not have a very good day
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Mar 13, 2023 15:18
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Jabor posted:No error for me, but uh ... WAL did not have a very good day the market opened less than an hour ago lol
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Mar 13, 2023 15:19
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i'm listening to twit for the techboomer take on all this and the panel refused to let leo bring @jason on until they're all gone lmao
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Mar 13, 2023 15:19
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Jabor posted:No error for me, but uh ... WAL did not have a very good day insert database joke
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Mar 13, 2023 15:21
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Cold on a Cob posted:i'm listening to twit for the techboomer take on all this and the panel refused to let leo bring @jason on until they're all gone wait... leo laporte still has a job?
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Mar 13, 2023 15:23
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