I get that. Time will tell. Weāll all be geniuses on this topic next year.
SAJ-99
Well-known member
They only have to plug the difference. I'm not saying it isn't significant, just saying it's not the whole depositor balance. They will sell the assets (loans are assets to a bank) and fund the remaining. Just to be clear, banks fail ALL THE TIME. They just don't make headlines until they get large.
The big question is do we want banks to become utilities? I think we would generally agree we are all just banking with the Fed at the end of the day. I think we have too many small banks, but you know, capitalism and too big to fail and all that stuff you hear around these events. Do we want to just make them Utilities where "profit" is determined by the regulators? I'm sure E Warren would say yes, but your argument leads to the same path, and I don't think you two agree on much.
Letās recap. Economy booming due to essentially near zero free money for many years. Pandemic hits and government pumps trillions into economy with multiple stimulus and programs. Biden starts a spending spree. $700B here, $700b there, chips and Science act, infrastructure bills. Inflations pops itās head up. Biden and the experts all state just transitory. Letās inject another $750B and call it the Inflation Reduction Act. Reasonable people ask āwonāt pumping more money into the economy cause inflation when all the metrics indicate economy is already experiencing inflationā? Biden, āno, of course not. Thatās why we called it the Inflation Reduction Actā. Over a year of high inflation. Oops. Banks, like SVB, take the deposits and weāre being good banks and buy what is seen as the lowest risk, govt T bills. Bond market adjusts due to the govt created inflation and SVB, uniquely tied to SV tech, as tech firms withdraw some money, needed to sell those super safe T Bills at a loss. Peter Thiel hereās this and then informs his client to get their money out. Bank run. Goodbye SVB.
HONEYBADGER
Well-known member
- Joined
- Aug 24, 2013
- Messages
- 774
Cali Governor Gavin, family and friends all have money in that bank. Ain't no way they going to let those depositors lose their money even though they were above FDIC limits.
BigHornRam
Well-known member
Right or wrong, that's how it will be spun. Don't have much faith in the "system" right now.
D
Deleted member 28227
Guest
You're leaving out Trump screaming at the fed about keeping interest rates low, despite economics screaming it would cause record inflation.
I'm not disagreeing with the later events, but Trump took a hot economy from Obama, overheated it then we had the pandemic et al.
noharleyyet
Well-known member
Wondered how long it'd take...
BigHornRam
Well-known member
Revisionist history. The Obama economy was not that great.
Real GDP growth rate U.S. 2023 | Statista
In 2023 the real gross domestic product (GDP) of the United States increased by 2.5 percent compared to 2022.
www.statista.com
22 2.1%
'21 5.9%
'20 -2.8%
'19 2.3%
'18 2.9%
'17 2.2%
'16 1.7%
'15 2.7%
'14 2.3%
'13 1.8%
'12 2.3%
'11 1.5%
'10 2.7%
SAJ-99
Well-known member
Other than a basic misunderstanding of legislation, budgets, economics, and Tbills, it is pretty close.
BigHornRam
Well-known member
He nailed it and that is why we are in the situation we are now in.
SAJ-99
Well-known member
You just watch the same news channel. If only things were as simple as that. Our main economic problem is we still have a mismatch between jobs and workers. US citizens donāt want to make hard choices so the Fed has to, and takes the blame. We all just sit on the internet and bitch about whose fault it is. Not productive.
noharleyyet
Well-known member
Nah, I'd bet most of have jobs...if there's a mechanism that allows otherwise maybe we're arguing about different issues. And please stop with the Fox crap...you're smarter than that.
D
Deleted member 28227
Guest
Bashing the executive for the economy as long as it's not "your" guy, at what point can we just cede there were two presidents during the pandemic and that this isn't a single party blame-fest, not to mention the fact that both parties were reacting to what was seen as not doing enough in 08'.
noharleyyet
Well-known member
How could I bash Joe, heās not running anything.
SAJ-99
Well-known member
He certainly wasnāt running anything when the first two checks were mailed out in 2020.
If the Fox News reference offends you, thatās your problem. It is pretty applicable here.
noharleyyet
Well-known member
What's he running now?....supposedly where the proverbial buck stops . . . *no pun
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D
Deleted member 28227
Guest
Presidents I hate and hope are one term
-Trump
-Biden
Bash away sir just do it in measures appropriate for the f-ups
noharleyyet
Well-known member
My feelings regarding Trump are archived here pre-2016. He's a pos and terrible statesman...but it wasn't his fault that a terrible candidate, actually the worst in history as he is the second worst, was appointed. And I blame the GOP equally.
We are only arguing about the color of gloves to wear when handling opposite ends of the same turd wllm.
SAJ-99
Well-known member
Depends on the conspiracy you want to believe. Presidents don't have a lot of impact on the economy, particularly in the four years they are in office. But the public doesn't like complicated stuff, so they place credit/blame. The reality of politics is that the game is take credit for the good stuff and blame the bad stuff on the other person. That has ramped up 100x over the last few decades. Now it is all about visibility, not ideas. I'm sure more people can name the governor of Florida than the governor of New York. When we can't discuss ideas, or even look back and evaluate past actions, nothing gets done and we just spiral downwards. But maybe Presidential elections have always been popularity contests?
