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Monday, 13 March 2023
quote [ The collapses of Silvergate and Silicon Valley Bank are like icebergs calving off from the Antarctic glacier. The financial analogy to the global warming causing this collapse is the rising temperature of interest rates, which spiked last Thursday and Friday to close at 4.60 percent for the U.S. Treasury’s two-year bonds. Bank depositors meanwhile were still being paid only 0.2 percent on their deposits. That has led to a steady withdrawal of funds from banks – and a corresponding decline in commercial bank balances with the Federal Reserve. ]
Two of the three of the biggest bank failures of all time in the US happened in the last 3 days. Good times.
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Comments
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rylex said @ 5:50pm GMT on 13th Mar
[Score:1 Underrated]
this is pretty spot on. part of the reason why banks are fucked are total return swaps. hedgefunds traded bad derivatives to the banks for liquidity to continue shorting the market. so now banks are on the hook for those.
very much like the sub prime mortgage banking issue in 2008 |
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steele said @ 11:04pm GMT on 14th Mar
I've just discovered Hudson last summer and seems to be pretty on point when it comes to finance and geopolitics. He called the US fucking over Europe in the current scenario with Ukraine like back in 2015.
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yunnaf said @ 12:20pm GMT on 15th Mar
use US VPN
https://www.pbs.org/wgbh/frontline/documentary/age-of-easy-money/ |
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