the i dont care about politics anymore thread

[MrSparkle001]

Originally Posted by unsunghero [You must be logged in to view images. Log in or Register.]

Then it was stupid to not anticipate that. I heard about interest rake hike possibilities as soon as inflation was taking off and I’m no banker

And/or they should have moved those funds to other things before they tanked

I agree with that but what is really stupid is the Fed thinking this constant rate increasing is going to curb inflation. That's a play out of the old playbook and it doesn't work anymore, obviously. This inflation is profiteering, with some companies and sectors posting record profits for 2022. They're not raising prices to keep their profit margins equal to pre-covid, they're making record profits which means the price increases are above and beyond what are needed.

And the Fed just keeps raising interest rates like that's gonna solve the issue. Meanwhile banks are failing and the market is teetering on collapse.

[aussenseiter]

Originally Posted by unsunghero [You must be logged in to view images. Log in or Register.]

Then it was stupid to not anticipate that. I heard about interest rake hike possibilities as soon as inflation was taking off and I’m no banker

And/or they should have moved those funds to other things before they tanked

Maybe, but not risky.

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[unsunghero]

Originally Posted by aussenseiter [You must be logged in to view images. Log in or Register.]

Maybe, but not risky.

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I’ve heard them called that by various pundits. They didn’t even have a person in the risk management position I also heard

[aussenseiter]

Originally Posted by unsunghero [You must be logged in to view images. Log in or Register.]

I’ve heard them called that by various pundits. They didn’t even have a person in the risk management position I also heard

If treasury bills are risky, I'm moving to Switzerland.

[Patriam1066]

Originally Posted by aussenseiter [You must be logged in to view images. Log in or Register.]

If treasury bills are risky, I'm moving to Switzerland.

Having not much cash on hand and not diversifying is risky. Any asset class is risky without diversification. That’s why the bitcoin morons are not smart to bet it all on crypto

[unsunghero]

Originally Posted by aussenseiter [You must be logged in to view images. Log in or Register.]

If treasury bills are risky, I'm moving to Switzerland.

Did a cursory search

“Complicating the situation, SVB kept a lower level of deposits on hand and invested a greater percentage of its capital in order to try and pay its relatively higher rates. Consequently, SVB has been on looser footing than most other banks.
Additionally, some have speculated that SVB developed a reputation for having not-as-strict lending standards. It is speculated that the quality of loans to some riskier venture-backed companies with deposits at SVB has deteriorated over the past year. Many of those firms have come under significant financial pressure as rates have risen and securing capital has become more difficult compared to the low interest rate environment from just a couple of years ago”

https://www.fidelity.com/learning-ce...-bank-collapse

[Patriam1066]

Either way, as long as people are criminally prosecuted, securing people’s deposits doesn’t matter. Just put the banker in jail or life and take all of his and his children’s money and let everyone learn a lesson (no parole)

[unsunghero]

More:

“Becker and other leaders of the Santa Clara-based institution, the second-largest US bank failure in history behind Washington Mutual in 2008, will have to reckon with why they didn’t protect it from the risks of gorging on young tech ventures’ unstable deposits and from interest-rate increases on the asset side”

“At SVB, “there was a lot of risk they were taking on that other banks wouldn’t,” said Sarah Kunst, a managing director at venture capital fund Cleo Capital. “That ultimately was part of their demise.”

https://fortune.com/2023/03/10/how-s...est-rates/amp/

[aussenseiter]

Ok but goalposts. [You must be logged in to view images. Log in or Register.]

[unsunghero]

Originally Posted by aussenseiter [You must be logged in to view images. Log in or Register.]

Ok but goalposts. [You must be logged in to view images. Log in or Register.]

““At SVB, “there was a lot of risk they were taking on that other banks wouldn’t,” said Sarah Kunst, a managing director at venture capital fund Cleo Capital. “That ultimately was part of their demise.”

Other banks knew better and that’s why they survived

SVB deserves to fail