Update:
Cliffs:
- a lot of banks are carrying unrealized losses due to the steep increase in interest rates
- SVB didn't hedge their bonds
- withdrawals forced them to realize their loss
Link: https://twitter.com/DowdEdward/statu...665443328?s=20
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Link: https://twitter.com/Schuldensuehner/...832493081?s=20
Banks make their money issuing loans, but people do not want to borrow at such high interest rates.
Also mentioned: the Federal Reserve was backstopping mortgages by purchasing mortgage backed securities from 2008 until February 2022. Once those purchases were halted banks were no longer guaranteed a return on home mortgages and once more had to assume some risk of default so > higher interest rates on mortgages > less demand for mortgages.
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03-10-2023, 09:25 AM #1
Silicon Valley Bank Shut By FDIC
Last edited by katya422; 03-11-2023 at 06:43 AM.
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03-10-2023, 09:32 AM #2
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03-10-2023, 09:35 AM #3
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03-10-2023, 09:47 AM #4
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03-10-2023, 09:49 AM #5
I mean I can't say if this will spread, but there was that leaked video of the FDIC meeting where they flat out said there would be bank runs and bank failures, but they want to keep it from the public.
A video about that if you missed it:
Same guy put up a video about bank runs 2 days ago:
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03-10-2023, 09:51 AM #6
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03-10-2023, 09:52 AM #7
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03-10-2023, 09:55 AM #8
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03-10-2023, 09:57 AM #9
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03-10-2023, 09:57 AM #10
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03-10-2023, 09:58 AM #11
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03-10-2023, 10:01 AM #12
Surely this will be an isolated incident.
In completely unrelated news the number of applications for mortgages have hit their lowest numbers since 1995. Keep in mind the US population was about 20% lower in 1995 than it is now. Wells Fargo announced a couple of months ago that except for some niche potential clients they're pulling out of mortgages. 2023-24 are going to be "interesting."Light weight! Light weight baby!!!!
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03-10-2023, 10:05 AM #13
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03-10-2023, 10:06 AM #14
lol at Cramer.
From comments on the bank run video:
Found a bitchute link too: https://www.bitchute.com/video/gwbXbO0A3XBz/INTP Crew
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03-10-2023, 10:09 AM #15
In for 35 youtube videos totaling 3 days of run time posted by mentally ill middle aged woman who was caught frauding pics.
I've realized why she screenshots videos and there comments. She doesn't actually watch them. Not possible. Not enough time in a day. She reads the comments and decides it's proof in her mind of whatever her latest CT is.
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03-10-2023, 10:14 AM #16
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03-10-2023, 10:16 AM #17
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03-10-2023, 10:16 AM #18
Oh, I watch them. That's how you get the red bar.
Didn't watch the new Ed Dowd one yet though.
I also read a good bit.
ETA: Posted this earlier today. Read about it last night. No video.
Shots Contaminated With e. coli Plasmids/DNA:
https://forum.bodybuilding.com/showt...post1678691543INTP Crew
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03-10-2023, 10:39 AM #19
Something we need to remember is that the effective Fed interest rate was zero from 2009-2016 and 2020-2022. There are lots of bubbles that have formed as a result. Just a few days ago it seemed the FR was going to raise rates by 50 points at their next meeting but with financial contagion entering the game that may not happen.
Light weight! Light weight baby!!!!
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03-10-2023, 10:43 AM #20
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03-10-2023, 10:46 AM #21
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03-10-2023, 10:49 AM #22
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03-10-2023, 10:50 AM #23
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03-10-2023, 10:57 AM #24
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03-10-2023, 11:04 AM #25
Not scared, just watching the show.
Don't have any money, but I am curious how this story will play out.
Well I will give you that like many youtubers he does tend to hit the "scary" note with his thumbnails, but when you watch it's mostly a news recap except since he is in the UK he often has articles about happenings that aren't getting covered in US media.
The FDIC video leak looks real and AFAIK there was no official statement put out claiming it was fake. Is it a secret that some banks have significant derivatives exposure? That holding loans on your books which are paying a lower interest rate than current inflation is a losing position?INTP Crew
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03-10-2023, 11:11 AM #26
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03-10-2023, 11:14 AM #27
Low to moderate fear is appropriate. We're living in what many have termed "the everything bubble" for a few years and of course nothing can last forever. It's times like these and the coming months that make me wonder why normal people invest in anything but ETFs and a small amount in individual stocks. No way we're about to see a repeat of 15 years ago. I think we're in for it being much less severe than that, but more severe than the dot com crash.Light weight! Light weight baby!!!!
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03-10-2023, 11:18 AM #28
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03-10-2023, 11:21 AM #29
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03-10-2023, 11:21 AM #30
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