there is no Value out there, just a Fiat currency!
Silicon Valley Bank (SVB) Collapses
- Thread starter The Critic
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It didn’t take Silvergate Capital long either. They closed last week as well.
We may not be done yet.
I guess there must be, because it happens, right? Or is it, we don't need no stinkin' laws!
Have to and wanting to for whatever reason aren't the same. For instance, did GM and Ford have to be bailed out because of laws, or was it done for other reasons?
News is reporting SVB stock and bondholders will be wiped out, but depositors will be protected at no cost to tax payers. Curious about those details... seems like fuzzy math to me. How can FDIC cover loses, in excess of what FDIC's value and the $250k insurance?
Well all I can say is it's a good thing we don't wanna help dang college students!
I'm not sure of the math either, but I believe the powers that be feel there is enough equity left with the current assets to cover depositors providing they are liquidated at current value rather than at fire sale prices.
At least that us their story, and they are sticking to it. We won't know the truth until a new administration takes over, if ever.
GON
$150 Site Donor 2025
You have been opening your wallet wider and wider on every purchase you make, largely due to the printing of money, federal debt, deficit, and interest payments on the debt.
It's not like the existing assets are worthless - just insufficient to cover all deposits being removed at once. Or at least, there was insufficient liquidity to cover outflows.
Didn't GM, Chrysler, and Ford (didn't know they were involved) pay back their loans? The students have been helped the same way. Now it's time for them to pay back theirs. If they made poor choices let them live an appropriate lifestyle until they have.
Not a fan of forgiveness at all, after all no one forced anyone to sign anything, but I am a fan of not charging 6% over prime. Money was free for years and the federal government charged over 6.5%.
I'm with you on that. Reasonable interest rates, even it partially subsidized doesn't bother me.
Look at the bright side. The Fed may pound down the interest rates to to avoid another disaster.
"It's just money" ... that can be used to actually obtain tangible things. It's not "just paper with pictures on it".
Greenspan is single handedly the most responsible person for the mess we're in right now - his decades long orgy of low interest rates. Greenspan is a goon, an idiot, a slobbering moron. And the fact he served under 3 or 4 presidents shows you how shortsighted our leaders and system is.
Our system is like a drug addict, hopelessly addicted but unwilling to take even the smallest step to fix themselves. We've had an overheated housing market for decades and now we have rampant inflation. There is only one fix for that and that is to raise interest rates, and raise them far higher than they are now.
But no, our financial system and government refuse to pull the needle out of their arms. Inflationary times result in higher prices and higher wages. This is a cornucopia of income opportunity for our fearless cronies; increased property taxes, increased income taxes, increased sales taxes, etc. Neither the government or financial system has any incentive whatsoever to tame inflation. Inflation is their only game.
Scott
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He said as much in his book, which was my point. Not as succinct, of course. But Greenspan's been out of the picture for a long time.
I remember his "easy money policies" but he hasn't been in office since 2006 and the federal funds rate averaged 6.0% during his time in office only very briefly getting to 1.0% in 2003/4. That's still higher than the 0.10% it was from 2009-2016 and 2020-21.
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