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The Federal Reserve is technically bankrupt.
In 2023 the Fed will post its first annual operating loss of $80 billion since 1915. It will have a negative capital of $38B.
This loss does not count the $1.3 trillion unrealized loss on its portfolio.
I'm not really sure I'd like to live in Gaddafi's Lybia, tbh, central bank or not.
I'm not really sure I'd like to live in Gaddafi's Lybia, tbh, central bank or not.
Putting things in perspective on bank failures. Then and now. Now is missing Silvergate Bank in the picture.
Eman says
Putting things in perspective on bank failures. Then and now. Now is missing Silvergate Bank in the picture.
Adjust for inflation since then. Comparing 2006 to 2023 is vastly different. It looks big now, but it's really not. Also the banks closing had their hands in the crypto game which lost 78% of value since its peak around December. A lot of people and businesses lost their asses in that realm. It wasn't a bank run, they had to pay bills and the funny money in crypto was gone. So they took their deposits out to keep businesses afloat.
Factor in FTX which was all in the same realm of investment and you have a shit storm. We have the tech bust in 2001, housing bust in 2007 (ish) and this will go down as the crypto bust. Unfortunately it's dragging tech into ...
I see where we don’t see eye to eye. We’ve had only 3 bank failures…..so far…..compared to all the bank failures during the GFC. Will we have more bank failures? I hope NOT! I hope J Powell and Yellen put an end to the bank runs with their joined statement on Sunday. 🙏
Patrick says
The problem isn't the "bailout" - it's just making depositors whole.
The problem is that nobody is going to be prosecuted. That's the problem. People need to go to fucking jail. Instead they will just pay a fine. SVB was making wreckless and irresponsible bets. This USED to be prevented by Glass–Steagall. This is a failure of regulators and our criminal government. Put these assholes in jail or it's just going to happen again.
Is Sam Bankman Fried in jail yet?
This is all happening because nobody went to jail with widespread mortgage fraud in the early 2000's.
Collin Rugg
@CollinRugg
·
22h
BREAKING: Gavin Newsom failed to disclose personal ties including his bank accounts at Silicon Valley Bank while lobbying for their bailout.
This is illegal.
This is illegal.
Credit Suisse is next, apparently. If they goes under, it will be much worse.
Collin Rugg
CollinRugg
·
22h
BREAKING: Gavin Newsom failed to disclose personal ties including his bank accounts at Silicon Valley Bank while lobbying for their bailout.
This is illegal.
Silicon Valley Bank offered nearly $73 million to Black Lives Matter-related social justice organizations in the years preceding its failure, while Signature Bank gave $850,000. A database maintained by the conservative Claremont Institute reveals that SVB contributed over $73,450,000 to the movement and other social justice organizations in an effort to improve its Environmental, Social, and Governance grade. In the meantime, New York-based Signature Bank gave a total of $850,000 over the course of several years prior to its failure on Sunday.
Building a Culture of Diversity, Equity and Inclusion at SVB
Clearly SVB was emphasizing DIE over competence:
https://www.svb.com/about-us/living-our-values
Building a Culture of Diversity, Equity and Inclusion at SVB
https://www.svb.com/about-us/living-our-values/diversity-equity-inclusion
https://www.svb.com/globalassets/library/uploadedfiles/diversity-equity-and-inclusion-at-svb_january-2023.pdf
Go woke go broke! SVB hired board obsessed with diversity, invested $5BN for 'healthier planet' and held month-long Pride celebration - but had NO chief risk officer for eight months last year
Silicon Valley Bank had an A rating for its Environmental, Social and Governance policies as it increased diversity and invested in sustainability startups
But for eight months last year, the bank did not have a chief risk operator
At the time, it was investing clients' money in low-interest government bonds and securities that saw their value fall when interest rates rose
I can't find any confirmation of how much they gave to BLM, but it seems unlikely to me that they did not donate, given how openly woke they were:
https://www.svb.com/globalassets/library/uploadedfiles/diversity-equity-and-inclusion-at-svb_january-2023.pdf
I read a very convincing explanation of the psychology behind that here:
https://boriquagato.substack.com/p/the-glorification-of-sub-mediocrity
The point being that people in positions of great responsibility must be hired on competence alone, utterly without regard to race, not only for the protection of the public, but because discrimination in employment based on race is illegal, and because hiring based on race makes everyone rightly suspicious of the competence of minorities in positions of power.
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Oh yeah, and to once again blow away the bullshit about everyone being insured, read the article about how some depositors will have to pray dividend sales will someday return their deposits to them.
For some fun search bank run and see what some of the top images are.
https://www.zerohedge.com/markets/300-billion-reasons-why-svb-contagion-spreading-broader-banking-system