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| Silicon Valley Bank Collapses |
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| coppice:
--- Quote from: jonpaul on March 19, 2023, 01:47:42 pm ---After the SVB, and silverGate Today's failure and takeover of hugeCredit Suisse, a 150 year old highly regarded Swiss Bank, is now the third bank failure in just 10 days. --- End quote --- Credit Suisse is only 2 or 3 times the size of SVB. Its not that huge in global terms. Did you mean "highly reported"? I haven't seen anyone hold them in high regard for a very long term. The have given reporter lots to talk about, though.They've been a basket case just waiting for the final nudge over the edge. |
| BravoV:
--- Quote from: tom66 on March 19, 2023, 02:15:21 pm --- --- Quote from: BravoV on March 19, 2023, 01:48:51 pm --- --- Quote from: vad on March 19, 2023, 01:16:23 pm ---No reputable bank would support regime, whose leader is accused of war crimes and has international arrest warrant issued for him. --- End quote --- Like those claiming there was a WMD in Iraq and bombed the hell out of them ? Wait ... nah, you will never be smart enough to get this. :-DD --- End quote --- It's possible to think Putin is a war criminal and W. Bush is one too, but also accept the likelihood of Bush being prosecuted in our lifetimes as practically nil given the US does not accept any higher authority above itself. They have a law which would legalise their invasion of the Hague if one of their soldiers were to be put on trial. In fact, I once heard it quipped that if the US government had evidence God was real they'd go to war with the almighty to avoid accepting a higher power. --- End quote --- Thats what US and NATO called "rule of law", which means, do what I say, but NOT what I do. :-DD >:D |
| vad:
--- Quote from: BravoV on March 19, 2023, 01:48:51 pm --- --- Quote from: vad on March 19, 2023, 01:16:23 pm ---No reputable bank would support regime, whose leader is accused of war crimes and has international arrest warrant issued for him. --- End quote --- Like those claiming there was a WMD in Iraq and bombed the hell out of them ? Wait ... nah, you will never be smart enough to get this. :-DD --- End quote --- Was there a bank that claimed Saddam’s WMD possession and had few bombers in possession of their Security department? :palm: You need to get your facts straight. |
| vad:
--- Quote from: coppice on March 19, 2023, 02:14:44 pm --- --- Quote from: vad on March 19, 2023, 01:16:23 pm ---No reputable bank would support regime, whose leader is accused of war crimes and has international arrest warrant issued for him. --- End quote --- Reputable next to bank? That's a strange sentence. Real banks usually love war criminals. They tend to be loaded. --- End quote --- If you feel your bank is not reputable, you probably need to find a new one. Real banks also have compliance departments. And executives of real banks prefer to stay out of jail. For that reason they have the compliance departments. |
| bdunham7:
--- Quote from: jonpaul on March 19, 2023, 01:47:42 pm ---After the SVB, and silverGate Today's failure and takeover of hugeCredit Suisse, a 150 year old highly regarded Swiss Bank, is now the third bank failure in just 10 days. Even the FED, US treasury, ECB, and Swiss government cannot stem the rising tide of bank runs and metatastizing loss of bank confidence A natural.and long predicted result of a, Fiat currencies with zero metallic backing b, Fractional réserve banking c. sovereign debt explosion due to socialiste control of USA and EU budgets d, impacted of rapidly rising énergie costs, inflation e "Black Swan" of Covid-19 and then Putin's Ukraine war. The extreme volatility in all markets,and régions and widespread market impact may Signal the start of a major turndown. your thoughts? --- End quote --- My thoughts are that most of those factors should not cause bank failures. My opinion is that the primary and possibly sole cause is the previous ZIRP (and in the EU, NIRP) policies. Credit Suisse, along with many other banks, was forced to buy negative-yield bonds. In addition, those policies caused banks to issue loans at very low and occasionally below zero interest rates to avoid having to deposit their reserves at even more negative rates. Now that interest rates are popping back up, the banks are stuck with those loans as most borrowers are not likely to pay off a negative interest rate loan early. The decision by the US government and the Federal Reserve to keep pumping money into the economy and maintaining near-ZIRP conditions all throughout 2021 instead of gradually ramping up rates a bit was one of the stupidest blunders in history, IMO. And that isn't just hindsight, I and many other people were observing and discussing the obvious market distortions that were developing--stock market grossly overvalued, bids for TIPS bonds going way above the zero real yield price, home values rising on almost a daily basis (at one point our home was appreciating at a rate greater than our income), rents rising so fast that some fully-employed people were becoming homeless and lots more. Also, as of right now (7:44AM PDT, 2:44 GMT 19MAR2023) I haven't seen that Credit Suisse has actually either failed or agreed to be purchased by UBS. Has that happened? Edit: as of now (11:28AM PDT 19MAR2023) it is reported that UBS will be acquiring CS for the token sum of SFR 2 billion. Technically not a 'bank failure', but if it was I believe it would be the largest ever. |
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