[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

View post   
File: 445 KB, 1920x2400, Q2J5AAFMEJITPFEPWKVQBAMWCY.jpg [View same] [iqdb] [saucenao] [google]
54105394 No.54105394 [Reply] [Original]

What the FED are doing is not inflationary. They literally never even had this as an option in 2008.
The banks are failing because they have too many short dated treasuries which due to rates going up, caused holes in their balance sheets. keep in mind these are the safest" investment ever.
The FED are just going to guarantee depositors by honouring the face value before maturity and eating the loss themselves. this is only relevant if every tim dick and harry withdraws absolutely everything. the line of credit is only available for this purpose, and the banks have to pay interest on it.

Meanwhile, equity holders lose everything. share holders are getting thrown under the bus. no bailout.
In 2007/20008 they were over exposed to shitty real estate and junk bonds. the FEDs only option there was literally printing dollars and lowering rates, they did not have the ability to do what they are doing now which is way more limited in its effects.
The fed were fighting inflation. they were going to raise rates as hard and high as they could until financial stability was effected by it. that just happened. This is basically as far as they can go. if they continue, they know it can only get worse and bigger. now they can only hold course or squeeze out one or two tiny little 25 point hikes just to control inflation expectations and nothing more.

In other words, this is a pivot. not particularly inflationary intervention and only the biggest of retards cant see it for what it is.

>> No.54105409
File: 417 KB, 945x740, ltc boom.png [View same] [iqdb] [saucenao] [google]
54105409

>> No.54105440

What's the point of outlining all this? Who are you trying to convince, yourself?

>> No.54105469
File: 180 KB, 1012x452, Screen Shot 2023-03-14 at 11.18.09 am.png [View same] [iqdb] [saucenao] [google]
54105469

>>54105394
Isn't it a remarkable coincidence that "financial stability being affected" was the three major crypto facing banks getting shut down.
And that literally the same minute that the third bank was shut down (that wasn't even insolvent) the Fed stepped in and stopped contagion.
Just one of those coincidences in life, I guess.

>> No.54105487

>>54105440

the mass of fucking idiots on this board. it was the same shit when the fed pivoted to tightening. this board was full of tards saying

"THEY CANT RAISE RATES, IT'LL BREAK EVERYTHING, THEY ARE FORCED TO KEEP THEM LOW STAY MAD POORFAG. INFLATION IS BEYOND THEIR CONTROL DUE TO SUPPLY CHAIN"

now these SAME fucking retards are screaming
"THEY FED CANT LOWER RATES OR PIVOT, IT'LL BREAK EVERYTHING AS INFLATION IS EMBEDDED, THEY CANT AFFORD TO PIVOT"

My fucking sides. these retards can never accept anything

>> No.54105489

>>54105394
>Meanwhile, equity holders lose everything
Sorta like when the fed brokered a deal for JPM to buy Bear Stearns at $10/share in March 2008 when it traded for $172/ share only a few days prior. Same shit, slightly different underlying liquidity trap. Blackstone will be the Lehman moment come autumn

>> No.54105502

>>54105469

I think its interesting to note, but when you think about it, banks majorly dealing with crypto are going to be much more risk taking type of bank. why is it surprising they are some of the first to get raped by rates going up?

>> No.54105556

>>54105502
Holding government bonds is (or should be) the least risky investment option on the planet. It was only on the back of a series of rate rises that were higher and faster than any in history that they were caught out.
And it doesn't change the fact that government backstopping, which stopped contagion, was offered the minute the third crypto bank went down, not sooner. And the third crypto bank to go down, Signature, wasn't even insolvent. They just thought they could close it for no reason and the surrounding chaos would mask what they had done.

>> No.54105561

>>54105394
>setup a special purpose vehicle that makes the FDIC limit bottomless
>not inflationary
post nose

>> No.54105663
File: 3.15 MB, 1978x1378, stupid&senile.png [View same] [iqdb] [saucenao] [google]
54105663

>>54105394
SHUT UP, STUPID JOE. YOU'RE LYING TO AMERICA AGAIN

>> No.54105680

>>54105394
Back to plebbit you gaslighting moron

>> No.54105768

>>54105394
Idiot. I laughed too loud at your imbecilic post now everyone is giving me weird looks.

>> No.54105805
File: 108 KB, 744x604, F9B758A3-922B-421B-B022-F4A36A360CD2.jpg [View same] [iqdb] [saucenao] [google]
54105805

>>54105768

>idiot!
>this is the end this time. Then i will inherit the world with my gold. Women will breed with me finally as i am prepped for the storm

Reminder, chuds are always wrong with no exceptions.

>> No.54105848

>>54105487
i havent seen a single person say either of those things

>> No.54105857

>>54105394
The banks will pass down the increased cost to their customers.

>> No.54105881

>>54105394
>>54105805
jewish shills still raiding?

>> No.54105902
File: 143 KB, 535x375, 1678741866477664.png [View same] [iqdb] [saucenao] [google]
54105902

https://files.catbox.moe/j8v0ag.webm

>> No.54105926
File: 171 KB, 769x1024, 1677907457326691.jpg [View same] [iqdb] [saucenao] [google]
54105926

>> No.54105930

>>54105394
Dumb take, stopped reading halfway through it was so dumb. Have fun though buddy.

>> No.54105951

>>54105394
OP is correct

>> No.54105992

>>54105881

>be constantly wrong
>People start to notice and point it out when you make your next grand prediction
>THE JEWS ARE HERE TO HIDE THE TRUTH

>> No.54106055

>>54105992
>be flooded with a ton of shills using the same images and language previously unseen on /biz/
>people start to notice
ironic

>> No.54106073

>>54106055

tell me again, why would anyone believe what you faggots say when you are literally without a doubt always wrong? your little conspiracy is no different

>> No.54106090

>>54106073
>always wrong?
If they're always wrong, then why is everything shit?

>> No.54106208

>>54105848
Schizophrenia is a hell of a condition.

>> No.54106264

>>54105487
You are punching at ghosts

>> No.54106287

>>54105469
>Crypto
>Bank
An oxymoron.

>> No.54106352

>>54105394
>The banks are failing because they have too many short dated treasuries which due to rates going up, caused holes in their balance sheets.

why do they keep buying these though

are they fucking retarded

>> No.54106583

>>54105394
> short dated treasuries which due to rates going up
are you retarded? they bought long term treasuries like 10 years ones, when it was at 0% interest rate.

>> No.54106714

>>54105502
Because they held bonds lol quit trying to tarnish legitimate markets like Bitcoin.

>> No.54106750

>>54106073
The Fed screwed the banks and you're trying to point at crypto.

The banks are 700b in the hole 2x the market cap of Bitcoin.
Grow up lol

>> No.54106909

>>54105394
the jews in charge immediately covered 150 billion in deposits at svb. 150% of fdic insurance fund. 90% of those deposits were above 250k.

a huge portion of that money was pulled out of thin air from bankers at svb to make tech faggots and their zombie companies rich.

its fucking disgusting.

>> No.54106980

>>54105469
Also, all the globohomo tech companies and depositors that were affected are being reimbursed by unelected officials with zero oversight (inb4 regulatory capture is oversight)

>> No.54106997

>>54105926
I dunno, the chud meme still looks better than any jew, lmao.

>> No.54107013
File: 385 KB, 512x512, 1678776055535.png [View same] [iqdb] [saucenao] [google]
54107013

>>54106073
>tell me again, why would anyone believe what you faggots say when you are literally without a doubt always wrong? your little conspiracy is no different

>> No.54107092

>>54106980
there wasnt even discussion. how the fuck is congress not in charge of this? svb has 150 billion of deposits.

>> No.54107276

>>54106909
The insurance money bag is emptied to cover over 250k richfag globohomo techies, just imagine. What will be left when the average Joe regional banks go bust?

>> No.54107307

>>54105394
A pivot is/was only Bullish in the case of a soft landing. That is out the window now. A pivot now in this scenario means "desperation" and an uphill battle to stop a failing financial sector. That is Bearish. Historically Fed pivots have always been followed by the worst crashes of a Bear market/bubble, and for good reason.

>> No.54107391

>>54105394
So will my shit coins pump or what

>> No.54107415

>>54106090
All their infographs and statistics are right but all their doomsday happening bs is always wrong. It's going to be a slow, boring grind down not some le epic societal collapse and the masses are never going to get redpilled and do anything about it. The masses do not care and will never care unless they are literally starving and the kikes aren't going to let that happen.

>> No.54107459

>>54105663
He just says what his handlers tell him to. He isn't fully to blame because of his cognitive decline.

>> No.54107513

The Dunning-Kruger effect is palpable in OP

>> No.54107536

>>54107092
Congress is divided so they won’t do shit. What this leads to is a progressively weaker and weaker congress that never gets anything done in a 2 party system. Major flaw in the constitution. Instead, we would want a system that encourages power grabs by congress at the expense of the courts and executive, instead of the other way around.

>> No.54107658
File: 9 KB, 176x176, channels4_profile.jpg [View same] [iqdb] [saucenao] [google]
54107658

>>54105394
OP is right. I know because I watched that same Patrick Boyle video this morning.