|
short selling another failing bank #2 to cover the losses that you hold in failing bank #1 is classic 2008
|
#
?
Mar 13, 2023 16:15
|
|
|
|
| # ? Apr 28, 2024 18:01 |
|
|
TDepressionEarl posted:investors also can make money when the shares drop off short selling oh my god what has Reddit been talking about while we've been doing this? have they started screaming about short squeezes yet?
|
|
#
?
Mar 13, 2023 16:16
|
|
|
raminasi posted:you keep saying "for nothing" like that's not the way that depository banking is expected and relied upon to work. when i deposit money in a bank, i expect to be able to get it back "for nothing," because it's a bank. if i deposit money in an uninsured account in FartBank, I do not get money back. If I deposit money above the insured value in an account in FartBank, I do not get money back above the insured value. They are getting preferential treatment that I would not get. They are absolutely getting it "for nothing". quote:the $250k insurance limit is just kind of an arbitrary one, it's not magic or special. would you support raising the insurance limit to ten billion dollars? because that would cause the same outcome for depositors. isn't FDIC insurance covered by premiums? presumably those premiums would skyrocket if the insured amount limit went to 10 billion dollars? in any case it appears the insurance limit does get raised to ten billion dollars arbitrarily, if sufficiently well connected people get distressed! not for me though.
|
|
#
?
Mar 13, 2023 16:16
|
|
|
markets seem convinced that all the banks collapsing heralds an imminent return to near-zero interest rates and are already pricing it in lol lmao
|
|
#
?
Mar 13, 2023 16:18
|
|
|
I think the people poisoned by train derailments fueled by corporate greed should just have gotten health insurance and better insurance for their houses if they wanted to be made whole. If the government or red cross helps them, then they should take ownership of their homes and possibly health once we figure out how to do that exactly.
|
|
#
?
Mar 13, 2023 16:18
|
|
|
MononcQc posted:I think the people poisoned by train derailments fueled by corporate greed should just have gotten health insurance and better insurance for their houses if they wanted to be made whole. If the government or red cross helps them, then they should take ownership of their homes and possibly health once we figure out how to do that exactly. it is an inherent gamble to live in Ohio
|
|
#
?
Mar 13, 2023 16:20
|
|
|
TDepressionEarl posted:the large uninsured depositors are also 100% safe they're only safe from interest rate risk on government bonds. that's still nowhere near as good as what small depositors already had. this isn't what "preferential" means.
|
|
#
?
Mar 13, 2023 16:20
|
|
|
i didn't go to college because i knew my loans wouldn't be forgiven i'm not a real computer toucher feel free to run me out of yospos on a derail
|
|
#
?
Mar 13, 2023 16:20
|
|
|
MononcQc posted:I think the people poisoned by train derailments fueled by corporate greed should just have gotten health insurance and better insurance for their houses if they wanted to be made whole. If the government or red cross helps them, then they should take ownership of their homes and possibly health once we figure out how to do that exactly. interestingly enough most ordinary people affected by corporate greed are in fact left to fend for themselves.
|
|
#
?
Mar 13, 2023 16:21
|
|
|
mila kunis posted:interestingly enough most ordinary people affected by corporate greed are in fact left to fend for themselves. well specifically in this instance with SVB, ordinary people are not affected, because their employers (who weren't the irresponsible bankers nor investors) got their payroll covered so they're not out of a job
|
|
#
?
Mar 13, 2023 16:22
|
|
|
ironically, jp morgan (but not any of the other big 4) was out of this because they were greedier, and wanted more than the dog poo poo yields in the pandemic, so they stayed in cash. so in some large part it was also insufficient greed and not enough yield chasing
|
|
#
?
Mar 13, 2023 16:24
|
|
|
MononcQc posted:take ownership of their homes and possibly health the government takes ownership of my health? no the insurance company owns my health. how this works in america is i would go into bankruptcy because i can't pay my family's hospital bills. and then the bank takes the house and the land. because i can't pay the hospital bills.
|
|
#
?
Mar 13, 2023 16:26
|
|
|
mononcqc is canadian
|
|
#
?
Mar 13, 2023 16:26
|
|
|
bob dobbs is dead posted:mononcqc is canadian lol
|
|
#
?
Mar 13, 2023 16:26
|
|
|
MononcQc posted:well specifically in this instance with SVB, ordinary people are not affected, because their employers (who weren't the irresponsible bankers nor investors) got their payroll covered so they're not out of a job sounds good. i hope they keep their jobs as well, and also their employers are forced to give up equity for the bailout they're getting. luckily for you this will never happen
|
|
#
?
Mar 13, 2023 16:30
|
|
|
looks like schwab ate the circuit breaker too
|
|
#
?
Mar 13, 2023 16:31
|
|
|
mila kunis posted:if i deposit money in an uninsured account in FartBank, I do not get money back. If I deposit money above the insured value in an account in FartBank, I do not get money back above the insured value. They are getting preferential treatment that I would not get. They are absolutely getting it "for nothing". yes...you would? that's the whole point? if you, right now, had money over the fdic limit at some random bank, and that random bank were at risk of failure because of interest rate risk on its long-term bond holdings, then that random bank would use the new fed borrowing mechanism to avoid insolvency, and you'd be able to withdraw your entire account. that's why they're doing this, so that you - a random depositor who hasn't bothered to audit the bank you chose - don't have to worry about your money vanishing because of something you have no knowledge of or control over. i agree that they're getting it "for nothing." i'm saying that that's the point. that's how banks are supposed to work, for everybody. mila kunis posted:isn't FDIC insurance covered by premiums? presumably those premiums would skyrocket if the insured amount limit went to 10 billion dollars? and now i get to ask my real question: why do you think fdic insurance exists? raminasi fucked around with this message at 16:41 on Mar 13, 2023 |
|
#
?
Mar 13, 2023 16:31
|
|
|
bob dobbs is dead posted:looks like schwab ate the circuit breaker too what is actually happening with all this? it sounds like the fed fixed the issue exposed by the failure of SVB with the loan program, why is the stock market freaking out?
|
|
#
?
Mar 13, 2023 16:33
|
|
|
contagion
|
|
#
?
Mar 13, 2023 16:33
|
|
|
because the fed fixed it in part by making the shareholders eat poo poo. which is fine, but it means that the rational thing for shareholders on any of this is to run the gently caress away. like squishing carpet bubbles
|
|
#
?
Mar 13, 2023 16:34
|
|
|
stock market believes SVB could be a signal of broader troubles in the entire banking system.
|
|
#
?
Mar 13, 2023 16:34
|
|
|
it's almost like running our whole rear end economy through a volatile stock exchange has some downsides 
|
|
#
?
Mar 13, 2023 16:37
|
|
|
you also cannot prevent banking runs by having the president come out and say everything is fine. there is no way for that to be associated with everything being fine. the core part of not having a bank run is not thinking about bank runs. its basically like that game of not thinking about white elephants but for keeps
|
|
#
?
Mar 13, 2023 16:37
|
|
|
FCKGW posted:stock market believes SVB could be a signal of broader troubles in the entire banking system. well only with the stuff they hold shares of i.e. "contagion to my money" other banks go down just because sectors as a whole always go down like this, and I guess that some of them might get forced to buy out other banks and idk pay a bit short term to do it?
|
|
#
?
Mar 13, 2023 16:40
|
|
|
you would have been unironically better served by having kanye go up and do some kanye poo poo and then the president gets in a beef with him like obama did or some poo poo like that
|
|
#
?
Mar 13, 2023 16:40
|
|
|
so it's just generalised panic and some people thinking that fed bailouts for shareholders were priced in? this sure is a dumb system we have
|
|
#
?
Mar 13, 2023 16:42
|
|
|
how much trading volume on any given day is hedge fund robots anyway
|
|
#
?
Mar 13, 2023 16:44
|
|
|
the fast robots do market making for liquidity, they dont do trades with risk in them. there are slower robots that do that but the vast movements have to be approved by people
|
|
#
?
Mar 13, 2023 16:45
|
|
|
bob dobbs is dead posted:because the fed fixed it in part by making the shareholders eat poo poo. which is fine, but it means that the rational thing for shareholders on any of this is to run the gently caress away. like squishing carpet bubbles it's this, there's basically no reason to be a shareholder in the bank from a "make money quick" perspective. most people are not interested in voting control or whatever, they just want the number to go up
|
|
#
?
Mar 13, 2023 16:47
|
|
|
too big to fail: yospos edition
|
|
#
?
Mar 13, 2023 16:56
|
|
|
fart simpson posted:too big to fail: yospos weightlifting thread
|
|
#
?
Mar 13, 2023 16:57
|
|
|
do depositors normally get the fdic rules changed to get all their >$250k money after a bank failure? i can see on the fdic website that hundreds of banks have failed in the past 20 or so years, and they say you will not get any more than the insured amount. but what normally happens?
|
|
#
?
Mar 13, 2023 17:00
|
|
|
fart simpson posted:too big to fall: yospos weight loss thread
|
|
#
?
Mar 13, 2023 17:01
|
|
|
they take a haircut after assets get unrolled this time, there were so many uninsured deposits throughout the financial system there would have been huge withdrawals to get insured, which would have been big enough to cause runs on their own... not that this necessarily prevented the huge withdrawals. only the act of not thinking about bank runs can really prevent that
|
|
#
?
Mar 13, 2023 17:02
|
|
|
bob dobbs is dead posted:they take a haircut after assets get unrolled neuralink can’t come fast enough…
|
|
#
?
Mar 13, 2023 17:05
|
|
|
i tried to look up stats, the intent of the system is that regulators step in well before depositors are harmed, but no idea how often that fails to happen. it is also for sure perfectly normal that some effort is expended to stabilize things, this is not some weird aberration in that regard. i feel it might also be worth pointing out that e.g. cuba and china also have banking systems not that radically different from anyone else, but despite being much further left they have failed to adopt as their signature policy to let poo poo fail and tell depositors to screw themselves.
|
|
#
?
Mar 13, 2023 17:09
|
|
|
fart simpson posted:neuralink can’t come fast enough…
|
|
#
?
Mar 13, 2023 17:09
|
|
|
Cybernetic Vermin posted:i tried to look up stats, the intent of the system is that regulators step in well before depositors are harmed, but no idea how often that fails to happen. nice whataboutism
|
|
#
?
Mar 13, 2023 17:11
|
|
|
fart simpson posted:nice whataboutism you have exclusive rights to that gimmick, enforce it
|
|
#
?
Mar 13, 2023 17:12
|
|
|
|
| # ? Apr 28, 2024 18:01 |
|
|
Cybernetic Vermin posted:the intent of the system is that regulators step in well before depositors are harmed, but no idea how often that fails to happen. the former head of SVB lobbied for and received weakened regulations. i don't know the details of what changed well enough to make a judgement on whether or not it would have prevented its collapse, but it seems likely. it also seems like federal regulations for most mid-sized banks (which are actually systemically important) were defanged to the point that you now have state regulators (i.e. in new york re: signature) stepping in to do the needful instead probably bad, but i'm no expert in this kind of thing
|
|
#
?
Mar 13, 2023 17:17
|
|