patrick.net

Finally someone in the Mainstream media is spelling it out.

Banks are sitting on unrealized losses of $620 billion. Yep, the banking system would be gonezola except for FDIC.

Still, I wonder how quickly those who have more than the $250k FDIC cap are gonna disperse those funds among various banks.

https://www.msn.com/en-us/money/markets/us-banks-sitting-on-unrealized-losses-of-620-billion/ar-AA18wjGa?ocid=hpmsn&cvid=63fc3e394ad946d9a05fca2382eddbcf&ei=12

Don't count on the FDIC. It's been severely under collateralized for decades, a fact that is widely known inside the banking industry. AND, the FDIC only covers individual accounts up to, but not exceeding, $250,000.

Again, at the risk of repeating myself; no one is talking about derivatives, which are highly dependent upon an ever expanding economy in order to keep this insane, unimaginable Ponzi scheme from collapsing. What's even worse is that derivatives effects the entire global economy. According to credible sources, derivatives globally amount to over $1 QUADTRILLION, or, $1,000 Trillion.

S&P 500 futures up 1.5% right now as US government guarantees deposits to Silicon Valley Bank

RayAmerica says

Don't count on the FDIC. It's been severely under collateralized for decades, a fact that is widely known inside the banking industry. AND, the FDIC only covers individual accounts up to, but not exceeding, $250,000.

Nope, the FDIC will now cover beyond that $250k limit:
The Treasury Department designated both SVB and Signature as systemic risks, giving it authority to unwind both institutions in a way that it said “fully protects all depositors.” The FDIC’s deposit insurance fund will be used to cover depositors, many of whom were uninsured due to the $250,000 cap on guaranteed deposits.

https://www.cnbc.com/2023/03/12/regulators-unveil-plan-to-stem-damage-from-svb-collapse.html

No matter what the government says now, the taxpayers are gonna end up paying for the portfolio losses.

SVB had a loan book of about $75 billion. This was mostly made to start-up companies that were burning through cash. Being generous, let's say that someone will pay 60 cents on the dollar for the loans (remember that these companies are not cash flow positive. They need to borrow even more to continue operations). That would lead to a loss of about $30 billion. Since the entire banking sector earns about $280 billion per year, the banks will whine to their lobbyists and somehow the taxpayer gets the burden.

Things are blowing up nicely so far...no losses for any depositors.

Those crazy kids at Credit Suisse...just nobody is talking about how or what they blew up. There was stockholder equity of $42 billion at the end of 2022. UBS paid $3.3 billion during the takeover and the CoCo holders lost another $13 billion. Those highly paid bankers spent a ton on Ho's and blow...the rest they kinda wasted. UBS isn't fessing up to the size of portfolio losses they assumed either.

Deutsche Bank...well stock traders listened to the bank regulators and stopped the stock sell-off. They've got a market cap of about $13 billion and assets of about $1.6 trillion. Talk is cheap, but I bet Germany will end up doing a massive bailout. I dunno if the depositors come out unscathed on this one.

Meanwhile, here in the States the Fed's QT reversed itself and the Fed expanded its balance sheet.

It is technically possible to print more and more money until inflation drops...but I don' think people will like the outcome.

It appears that the banking sector is on $2T unrealized losses so far with 40x leverage! What a financial engineering marvel.

Misc says

It is technically possible to print more and more money until inflation drops...

What? How is that possible?

RayAmerica says

Again, at the risk of repeating myself; no one is talking about derivatives, which are highly dependent upon an ever expanding economy in order to keep this insane, unimaginable Ponzi scheme from collapsing. What's even worse is that derivatives effects the entire global economy. According to credible sources, derivatives globally amount to over $1 QUADTRILLION, or, $1,000 Trillion.

Since 2007 the World's bill payers still fail to realize that George Soros, and Warren Buffets biggest financial problems and hits, are NOT I will repeat for the mentally challenged and those way in the back in the nose bleed seats. IS NOT! Your Problem!

Go back and look historically when the Old Money crowd took a hit and racked up loses that sent them to the poor house, and to jump off the skyscrapers, the dreamers, Middle class, frugal and risk takers made out like a bandit, when their loses were put up for auction to pay the debt holders. We're not realizing that any more because the Presidential Crime organizations that has occupied the White House for over 20 years or more, have time and time again, shielded the public from those life changing deals. Instead the news and Uniparty establishment convinces everyone that if the President doesn't write them a multi trillion dollar check right now then the world would end. They con the constituency into championing them digging in their own pocket to bail them all out. Rather than using that coin to acquire Warren Buffet's losses for pennies on the dollar.

Look it up Folks! This is not how the Rich losing their asses are Historically handled. And also look up every time those fat cats fail and fall on their ass. Thousands of new Entrepreneurs are coined in an instant.

The last few administrations is only consolidating those resources into even tighter Monopolies. It's disgusting and everyone champions the bailouts or talks about them like they are for the best and protecting them.

97% of the People in the general public has over or anywhere near $250K in the Bank their funds are protected perfectly fine. They should be paid first if there's a problem and the billionaire's according to the spirit of the FDIC in the first place, can go pound sand and are Fuck out of Luck. .

GNL says

Misc says

It is technically possible to print more and more money until inflation drops...

What? How is that possible?

@GNL, as long as the money doesn’t make it to the economy or the masses and only being used as reserves, it’s possible. That’s my understanding.

Eman says

GNL says

Misc says

It is technically possible to print more and more money until inflation drops...

What? How is that possible?

GNL, as long as the money doesn’t make it to the economy or the masses and only being used as reserves, it’s possible. That’s my understanding.

It is simply impossible to believe we live in anything relational to reality. This is a complete farce of an economy. It has been commandeered by and for those who benefit from fraud. Completely fraudulent. Somethings got to give. How come this has never worked before anywhere in history?

I'm gonna bet First Republic gets taken over by the FDIC after market close today. Since the big banks put in $30 billion of their own money as deposits into this failed enterprise, expect the government to bailout all depositors regardless of deposit limits.

Sure we'll prop up the banking system with our own money...as long as we don't see any losses.

There ain't gonna be much faith in our banking system...it's all faith in the Treasury Department.

I dunno if the FDIC fund is big enough to handle this size of loss, Biden might have to go hat in hand to Congress for the Bailout money.

All these recent twatter-fueled bank panics are utterly idiotic. The clients of SVB for example simply killed the bank which was convenient and accomodating to their needs with their own hands and where do they go now? To the big banks which weren't as convenient and accomodating in the first place? Good job.

Misc says

I dunno if the FDIC fund is big enough to handle this size of loss, Biden might have to go hat in hand to Congress for the Bailout money.

Fixed:
I dunno if the FDIC fund is big enough to handle this size of loss, Biden might have to crank out the printing press for the Bailout money.

Any thoughts on Northeast regional bank stocks? At some point, they might be a buy. I'm not expecting them to go bankrupt like ones out west (at the moment).

Booger says

Any thoughts on Northeast regional bank stocks? At some point, they might be a buy. I'm not expecting them to go bankrupt like ones out west (at the moment).

I suppose I own some equity in banks via the index mutual funds.

But I don't like the concept of investing in bank stocks.

The reason I don't like the concept of investing in bank stocks is that the assets of the banks are their loan portfolios (IOUs from others). Not exactly the "assets" I care to own for the stock portfolio.

Nothing says Trust and Safety quite like capital controls. Over the last month or so, banks have been updating their terms of service. These have been to limit customer transfer of funds out of the banks at the banks' discretion. Today we hear word that the SEC is trying to put limits on movements of customer funds out of money market accounts during times of stress. --- Something Wicked this way Comes.

I've received several emails from my credit union stating things are fine. I've had this bank for 15 years. Never got an email like this until recently.