THE SILICON VALEY BANK COLLAPSE EXPLAINED, SORT OF … or … THE TYRANNY OF DEBT
BY DAN VALENTI
PLANET VALENTI NEWS AND COMMENTARY
(FORTRESS OF SOLITUDE, WEDNESDAY MARCH 15, 2023) — It’s bad.
How far, how farther, will the failure of Silicon Valley Bank (SVB) infect the U.S. economy?
- Already, two other large banks have failed.
- Moody’s just downgraded the ratings of U.S. bank stock from “stable” to “negative.”
- Moody’s also reduced six other banks to junk status.
- Uninsured bank deposits (account totals in excess of $250,000) are at risk.
- U.S. Treasury bonds have crumbled.
Meanwhile,
- inflation robs Americans of spending power
- mortages have become more expensive
- high interest rates is drying up credit
- and general economic destabilization from Bidenmomics’ spending jag have not just The Kapanskis jittery.
Thank you, Joe Biden.
And it’s funny–the more Biden’s people try to assure us that America’s banking system is in good shape, the more the markets and the Kapanskis are telling the opposite. Let’s see how the Democrats try to pretend that this is somehow Donald Trump’s fault. They’ve done it with every one of their missteps to date.
———- ooo ———-
Having your 16th largest financial institution fail sobers the markets. Moreover, it sheds light, for at least a couple microseconds, on the peril of debt.
THE PLANET asked our resident economist what he makes of the situation. Dr. Charles Trzcinka of Indiana University started with Treasury Secretary Janet Yellin’s promise to bail out depositors.
THE PLANET thanks of dear friend, Dr. Trzcinka.
Aremed with that, here is our “layman’s” explanation. Keep in mind that any explanation won’t do justice to the irrational and Byzantine intricacies of the debt-soaked economy.
The key factor to understand is how heavy SVB financed and was dependent on high-flying, dreamy tech startups. This makeup should prevent this collapse from taking down much more than it already has, but even that is uncertain. The collateral damage has largely been confined to these high-tech businesses, many of which have the fragility of cotton candy and the solidity of a piece of Charmin in a golf-ball-sized hailstorm.
The amusing aspect of the run on SVB is that it was internet-driven. A couple of Tweets turned into an exponential panic, and account holders raided the bank for $42 billion–IN ONE DAY! Welcome to a new way to economic Depression.
———- ooo ———-
This sad, short tale begins with Bidenmomics and how his party’s reckless spending of trillions drove inflation to levels not seen in more than a generation. Gas hit $5 a gallon and $100 at the grocery store bought precious little. The Fed then went into action, raising interest rates, making money more expensive to those in need of borrowing.
SVB held on to about $250 billion in deposits, most of which it invested in the “safety” of bonds and T bills. When bond rates failed to meet SVB estimates, returns fell. New venture capital dried up. As access to money also disappeared elsewhere, forcing tech companies to draw out deposits at SVB. The keep up with demand, SVB began selling those “safe” bonds at a loss. When word got out, depositors rushed to claim their money–only SVB didn’t have it. The run brought the bank to its knees, losing as it did to mounting demand.
———- ooo ———-
The cautionary tale here for THE PLANET is, first, the high cost of reckless spending, fake money not backed by any hard assets, existing only as dried ink on Crane’s Dalton-made paper or as photons in cyberspace. Fiat currency drives inflation. Syracuse Joe and the Democrats don’t care. A trillion for this … two trillion for that … pretty soon, you’re talking REAL money.
Second, the situation points out the shortsighted recklessness of debt.
Here’s how THE PLANET conceives of debt.
- Glenn Jolin has $100 of unbacked money.
- Mr. Jolin deposits it in Loanie Doanzer Bank (LDB). Both Jolin and the bank now have $100 on their books.
- LDB lends it out to Jenny Driver at 6%. Jolin and Driver now have $100 in assets, the bank $106.
- Jolin takes his grand and buys sneakers. Driver uses Franklin to purchase sunglasses. The shoe store and optometrist now have $100.
Let’s stop here. We took a fictitious $100, created out of thin air, and created five entities each with $100+ either in money or goods. That $500+ on the books that actually doesn’t exist. The entire system crashes if someone along the financial chain says, “Hey! What are we doing? The only thing backing this dough is trust. Well, guess what? I don’t trust it anymore, and I ain’t gonna take it in payment of what you owe me.”
It is, indeed, as precarious a situation upon which an economy can rest. One foot on a banana peel, the other handing over the precipice of a canyon.
Which brings us to the upcoming Pittsfield budget and the city’s misuse of funds.
Ah, but that horror story can wait a couple months. Trust us. It’s a terrifying tale.
—————————————————————
“The economy? ‘Tis simple. Two words: Chaos and fog” — Sir Donald Turpentine, Knight of the Bath.
“OPEN THE WINDOW, AUNT MILLIE.”
LOVE TO ALL.
Copyright (c) 2023 By Dan Valenti, PLANET VALENTI and EUROPOLIS MANAGEMENT. All rights reserved. The views and opinions expressed in the comment section or in the text other than those of PLANET VALENTI are not necessarily endorsed by the operators of this website. PLANET VALENTI assumes no responsibility for such views and opinions, and it reserves the right to remove or edit any comment, including but not limited to those that violate the website’s Rules of Conduct and its editorial policies. Those who leave comments own all the responsibilities that are or can be attached to those comments, be they rhetorical, semantic, or legal. Such commentators remain solely responsible for what they post and shall be and remain solely accountable for their words. PLANET VALENTI shall not be held responsible for the consequences that may result from any posted comment or outside opinion or commentary as provided in, but not limited to, Section 230 of the Communications Decency Act and this website’s terms of service. We serve as a marketplace of ideas, without prejudice and available to all. All users of this site — including readers, commentators, contributors, or anyone else — hereby agree to these conditions by virtue of this notice and their use of/participation in this site. When PLANET VALENTI ends with the words “The Usual Disclaimer,” that phrase shall be understood to refer to the full text of this disclaimer.
Joe Biden has been in the Swamp for the past 50 years. He is a multimillionaire corrupt career politician who owns two homes. As the U.S. President, he has spent over $10 trillion printed out of thin air over the past over a little two years. U.S. inflation is at a 40-year-old high. The U.S. national debt is over $31.6 trillion and rising. Wages are not keeping up with inflation. The Republicans in U.S. Congress are playing chicken with the debt ceiling. Bad boy Putin is threatening to take out his nuclear weapons toy chest and start WW3, which would end the world as we know it. Xi is planning his Chinese invasion of Taiwan in 2025. Big tech laid off tens of thousands of U.S. workers. SVB and other banks recently failed, along with Cryptocurrency Firms. China has invested billions of dollars into Big Tech, which is expanding its overseas operations and foreign workforce. China has also invested billions of dollars into the news media, Bill and Hillary Clinton, and Joe and Hunter Biden. U.S. foreign relations with China and Russia are very ugly, Big Tech is influenced by China, Bill Clinton is a twice convicted Felon whose charitable organization has questionable partnerships. Hillary Clinton is a has-been. Joe Biden and his son Hunter are under Congressional investigations for their questionable business ties to both Ukraine and China. Corruption and Greed are in play, while Trust in the system is for fools!
Yet you voted for Biden, and Hillary!
The bank crisis will be the final nail of the Biden/Dem Woke Coffin.
Someone may have said that about Chavez/Madura as they took down Venezuela – a onetime prosperous and democratic state and turned the State into a personal money laundering cartel-State.
That’s the idea Dan.Debt ceiling was raised every year for Trump…you are so forgetful.That is why I’m here.The Republicans are still flying confederate flags….Trump is your Retribution and Kerri Lake hissed a photo of the Fatman at CPAC when she walked off stage to zero people attending…there is more energy at the Amway scam convention than the Trump scam….nobody attended but the cult.
I’ll take $1000 Alex for ‘things that TSC has never personally witnessed.’
Fact check A$$ Clown-post YOUR photographs of confederate flags you’ve personally witnessed hanging from a house. Not an MSNBC stock photo, but one you can verify with date/time stamp. All cell phones do this now, so can’t claim ignorance.
I spend a lot of time in ‘Ultra MAGA Country,’ and according to Joe Xiden that’s now a bad thing to do, and have NEVER witnessed one “hanging from a house.”
I’m not hearing much hate talk from maga types. Mostly, they are frustrated by growing poverty, financial hardship, and corruption and otherwise a friendly people and not very outspoken.
I can say that the Confederate flag is a hated symbol to the GOP (period.) Those who fly it speak solely for themselves.
you are clearly not educated
You voted for Hubert Humphrey… and you killed Jesus!
I’m pleased as punch to say that I never voted for Hubert Humphrey or Humbert Humbert for that matter.
I voted for Humbert Humbert, running as James Mason.
HH has the best gravestone in Cambridge.
Very frightening. These people didn’t even need to physically go to the bank. Just tweet that you want some money. Account holders raided the bank for 42 billion in one day. I keep thinking of the movie with Jimmy Stewart with the run on the bank and Stewart asking people how much money they really needed just so they could keep the bank open. Biden’s wrecking ball policies are creating one crisis after another.
Who’s Jimmy in relation to Martha?
What was the name of that guy who dismantled a bunch of bank regulations not too long ago? Hmmmmm…TTT TTrr…Tru…nope, can’t think of it
Not true. Even far left Democrat Barney Frank says that is not what caused this crash.
What about Barney’s boyfriend Hot Bottom?
There’s the answer to your question Dan. As mentioned by that wonderful White House Press Secretary herself. Almost fell on the floor laughing
Our WH press sec’y dazzles with her Climate Change. She’s got the three prerequisite boxes checked to be hired by these sleazy bastards.We all know what they are. If in doubt, ask Dina. Hey, maybe we just discovered our go-to answer to any question: “If in doubt, ask Dina (IDAD)” Might be a good game show, too. IDAD. Kind of like Pittsfield’s Iditarod. What do you get with you combine the Iditarod with Idiot. Answer: IDAD.
North st needs dog sled lanes
DEI is on it. Aboriginal rights
Pretty strong language there Valachi.
I’m sure there is many more reasons why things went south, but..Trump is easier to blame.
Silicon Valley Bank was regulated by California officials, picked by Democratic Gov. Gavin Newsom.
https://townhall.com/tipsheet/mattvespa/2023/03/15/why-blaming-trump-wont-work-regarding-silicon-valley-banks-closure-
n2620630
The problem is that Biden choose to bail out the uninsured depositors who understood that they owned the risk. Biden’s policy privitazes success and nationalized risk. NOT fair and the policy drives failure and undermines caution.
The bailout is analagous to paying ransom to terrorists and letting them walk free.
From WSJ:
Silicon Valley Bank and Joe Biden’s $19 Trillion MondayHis latest bailout is a solution for him now and a problem for us later.
Your bank deposits are safe from bank failures. They aren’t safe from inflation.
We will never know if there would have been a generalized run on the nation’s banks, at least the small and medium-size banks the public perceives as not too big to fail. But notice that the giant rout in bank stocks on Monday came after, not before, Washington stepped in with funding help and an implicit universal deposit guarantee in the wake of the federal seizure of California’s struggling Silicon Valley Bank and New York’s Signature Bank.
If Monday’s rout in bank stocks further spooked uninsured depositors, it was just one more way government was working against itself. Shareholders had reason for fright as the government suddenly and unilaterally rewrote the terms of their investments. In essence, out of the blue, the risks that large, sophisticated uninsured depositors had willingly accepted were shifted to bank shareholders and U.S. taxpayers so Joe Biden could have a pleasanter start to his week than otherwise would have been the case.
One bird has flown, and that’s moral hazard, or the idea that bailouts only encourage the behavior that makes bailouts necessary. Don’t buy the claim that bank shareholders and CEOs are being taught a lesson. By guaranteeing all deposits, government actually makes banks an even more attractive source of funding for swing-for-the-fences bets by politically adroit, high-rolling bank entrepreneurs and executives.
This problem regulation will then try to solve by dictating which bets banks can make with customer deposits. Somehow the necessary clairvoyance is never found and bank failures keep happening. In a weekend, dispensed with has been a guardrail that served the economy well. As the title of a 1986 paper by the Chicago Federal Reserve Bank succinctly put it: “Uninsured deposits [are] a source of market discipline.”
The ability to fail was also once a strength of the U.S. economy, and that includes banks testing out new business models (i.e., aside from trying to be too big to fail).
The government doesn’t actually eliminate failure; it transfers the risk to itself. With enough risk transference, government’s own solvency and ability to maintain the value of its currency are placed at risk. We aren’t there yet but hard to miss are whispers that the Fed should now back off its inflation fight to support the administration’s priority of avoiding any more politically noisome bank failures.
Even progressives have started to speak respectfully of Mancur Olson. He saw where all this was heading as advanced, wealthy societies become paralyzed by vested interests and bureaucracy.
The problem isn’t just environmental lawsuits, zoning restrictions, union rules and endless naysayers making it impossible to build anything, including new power lines and wind farms. It’s more than just the malign magic by which too big to fail in the last crisis became, in the latest crisis, runs on smaller banks
that Mr. Biden had to fix by making small banks too big to fail as well.
Twenty years ago a presidential candidate could succeed while talking about the unsustainability of entitlements. Now the subject is verboten. Congress enacted a debt ceiling law so it would have to stop, think and debate before digging the hole any deeper. Now the hole is so deep, many in Congress don’t want to talk about it at all for fear of triggering a financial panic. Or take the disputed problem of climate change: The debate now is owned by two lies, exaggerating the problem and pretending green handouts will fix it.
The biggest problem of all is the size, inefficiency, indebtedness and unsustainability of government. Our political class has a silent strategy here too: Hope it blows up on somebody else’s watch. Already written into law are 25% cuts in Social Security benefits. Medicare can always balance its books by cutting reimbursements to doctors and hospitals and letting declining service and wait lists drive patients to seek care elsewhere. The solution for global warming, in the unlikely event the warming lives up to the hype, Congress might as well admit now will be a mad rush for cheap geoengineering to cut the amount of sunlight falling on the earth.
Which brings us to one imponderable concerning President Biden and our super-elderly leadership class.
A well-known behavioral reality of older people is their shortened time horizons. Look who’s making choices to engage in short-term, can-kicking exercises like forgiving student loans or guaranteeing bank deposits regardless of size—for that’s what last weekend’s sweeping $19 trillion implicit bank guarantee was, a short-term choice aimed at helping Mr. Biden’s Monday go better.
Mr. Biden may even be too young to be president. By now, perhaps only a 90- or 100-year-old can be sure of being safely out of the picture when all our can-kicking blows up in the country’s face.
Thanks for sharing. The most infuriating aspect of the SVB failure is that Janet Yellin came out that day and categorically said no uninsured depositors would be bailed out. Then, LATER THAT SAME NIGHT, Biden says then does the opposite. Here’s the key excerpt from the WSJ article: In essence, out of the blue, the risks that large, sophisticated uninsured depositors had willingly accepted were shifted to bank shareholders and U.S. taxpayers so Joe Biden could have a pleasanter start to his week than otherwise would have been the case. The article also says that Biden is telling “swing for the fences” investors that taxpayers will assume all the risk if the investment fails. And anyone who blames this on Trump might as well be that cartoon cat who gets fooled by the dog and then his head dissolves into an All-Day Sucker.
Yeah, that quote about a pleasant start to his week stuck with me too.
Fine commentary today Dan and my compliments to Charles.
I wouldn’t mind if someone bailed out her hairdo
It’s illegal to talk about that.
Nice analysis, Planet!
Thank you bonner
oops wrong planet….
You are welcome.
Thanks, MR. B.
I thought on the board, below the article, you were strictly Dan or Dan V for short or longform Dan Valenti. This is like getting novelty license plates from the RMV.
Well, I actually meant PFH, but Dan’s was ok too.
The problem is not keeping the sunlight from hitting the earth (nuclear winter) — it is allowing the heat radiated on earth to escape the atmosphere (greenhouse effect).
Very true words. I caught that too. The green
guys are talking about pumping sulphuric acid into the stratosphere to dim the planet.
For an astroturphysist, you make a great deal of sense.
Exactly which regulation did Trump change to cause this problem?
This will go down in history … oops, I mean herstory … uh, theystory … as the first bank run caused by the internet.
I just hope it’s the last, but something tells me it’s not.
Well, Bush bailed out the banks, and that was just the first.
Never give money to beggars, mostly, and to bankers always. Bankers are the bottom-rung level of intelligence and brains in the financial industry.
Don’t give money to the panhandling publisher of the Eagle!
How else to read their nonsense and hate?
They tell on themselves. Covertly putting Kap on Public Notice. That’s how we know what to watch out for.
Did Abner Doublespace cause it with his laptop on the common?
Jimmy was in Rear Window. Martha was in a cell with bars on the windows.
Only bars are in the vestibule. It’s a med cart.
Who got in line for the run? Was it those who were not covered by FDIC? If so, that’s their issue not yours.
Harvey is the Mortgage Department at Berkshire Bank
Harvey, daughter, married to Montano, Berkshire Property agents, Alander, etc.
They take properties and air b&b them regardless if it was someone’s homestead, they take everything and air b&b it – that explains the housing shortage in a coin roll.
go woke go broke
https://www.infowars.com/posts/signature-bank-gave-lecture-on-gender-pronouns-6-months-before-collapse/
The globalists are trying to intentionally crash the banking system to make way for their new world order so they concentrate on gender pronouns and watch everything burn down.
FRITZ
Good one! If this were a joke, no one would get it. If this were satire, no one would think it plausible. As it turns out, this was reality, and in WokeWorld, reality is what you WANT it to be.
https://thefederalist.com/2023/03/14/dont-blame-depositors-for-bank-failure-blame-biden-and-svb-management/
and on the horizon, global digital currency…..
Of course, Joe Xiden blamed Trump for SVB crash. It’s always Trump’s fault even though Xiden and the D’s had control of all three branches of government during Barry Sotero’s first two years into his third term. Much like his first eight years in office, Barry adheres to the principles of doing nothing, getting rich, and blaming others for his failures.
After reading this article, it makes me wonder what Berkshire County banks foolishly spent their clients’ money on horse$hit causes like this:
$73,450,000 to BLM
Silicon Valley Bank donated millions to Black Lives Matter-related groups, social justice causes, records show | Fox Business
The money went to their Massa.
Not nice at all.
Follow the Elizabeth Freeman money for example and you’ll see.
That GoFund goes to the mill owners, the publisher et al.
It’s a hot fudge sundae uphill running, w/ chopped nuts. (A Mind Fudge)
I’m late for scohol
Spot on Markus.
And this is exactly why Biden wants banks and especially investment firms to divert money to ESG’s. To fund these ridiculous social and environmental causes that most investors would not give a penny to. This is basically forced donations…..and needs to stop!
How much investment in these woke joke causes do our local banks have?
I’m sure our local activists who were and are taking care of know, but they aren’t telling.
I’m sure if the tax records and bank statements were pulled of the Cultural Competency Coach, you’d see a huge increase of (questionable) non-taxable income in those statements before the pandemic and during/after it.
Those 87,000 IRS Agents better look into this potential fraud.
I’m willing to go out on a limb and say an all expenses paid family and friends vacation to Africa funded by taxpayers money (ARPA) is taxable income. Or it should be. Enough is enough.
The candidate who promises a FULL audit of the initial ARPA handouts will win a lot of votes. That’s first on the audit list. City and school side need an independent, outside examination. If the new mayor comes in without doing that, he won’t have a clean economic foundation as his major financial and fiduciary premise. Continuation of disaster will follow. A lot of questionable developments involved the public treasury have been going on in the past 7+ years, and the new mayor MUST look into it. If all has truly been on the up and up– and not technically, marginally, or “second set of books” so — then the audit will restore some confidence in citizens.
I just don’t see that happening Dan. The minute any candidate suggested that, Denny, Shirl, BBEC, Warren ‘I’ Dews ‘What you can’t,’ and the other race baiters and grifters, would be screaming “racism” and writing letters to the editor about how “da man” is holding them down.
Of course with no facts to back up the racism claim.
They know they can’t because of the affirmative action plans Bill Clinton put in place almost 30 years ago with employment, college, federal backed loans, etc, the only thing holding a person down today is themselves.
Marchetti should save the expense since he is on the Mayors ARPA Advisory Council
Boy you guys got a lot of snow up here! Coming over the mountain it looks like a pic out of Dr. Zhivago. No wonder the climate cultists changed their mantra from “global warming” to “climate change.”
Nearly 3 feet in my driveway here in Pittsfield. Unbelievable!
When I was snow blowing I looked down and saw two feet.
Me too.
That makes the 3 feet comment very funny
Wet snow in March…..shocking!
This mornings batch of snow was not as heavy as yesterdays batch. The temps got low enough that it didn’t feel like lead to shovel.
Local climate changed yesterday. I predict future changes in store for us. Hang on!!!
NAACP -With dangerous attacks on Black history and stories skyrocketing in states across America, this couldn’t be more important.
Still uncertain if I am White, nobody informed me of what race I am.
By now it’s abundantly clear that the demand for racism in America far exceeds the supply. There simply are not enough people with a fondness for white sheets, pointed hoods, and an obsession with highly concentrated melanin levels in the epidermis. Most of us just don’t care anymore because we have better things to think about.
David Strom
Hot Air
You can’t tell if a person is white from the concentration of melanin levels in the epidermis. White people are the ones who have the means to engage in extortion. You’d need to check the financials, in order to know what color.
Since you have other things to think about, apparently you have a few eggs in your nests.
It’s nothing to do with Race, except for Poor is a race.
Not white, black, tan, red, yellow.
~ ROY G. BELL BIV DEVOE
The KKK was the antifa of its day. Both democrat organizations.
Sure is. Exclusive organizations.
You are using the past tense?
Maybe he should have used subjunctive?
I disagree. There’s no irrealis there, IMHO.
I’m on my way to the subjuncyard
Whats on your plate SECcrambled eggs ?
You might want to check your bank’s Board of Directors to check their experience, political affiliations, etc. I know at least one of your local institutions has gone woke!
https://www.thegatewaypundit.com/2023/03/svbs-board-of-directors-packed-with-democrats-including-hillary-donor-who-went-to-shinto-shrine-to-pray-after-trump-won-in-2016-only-one-member-had-investment-banking-experience/
SVB was (past tense, noted) so woke it makes Dina look like John Birch.
More like a birch tree
But not as smart
Let me add comment to The Planet’s nice example of debt. How do we minimize the banna peels? Dan is right about equity financing. If a bank was 100% financed the only source of risk would be whatever they invest in. Of course it would not be a bank. Banks would rather use depositor money than anything else because all other forms of financing is more expensive with equity being the most expensive finance. But if you use leverage you add risk on top of whatever you invest in. The bannana peels become slipprierer.
I miss-spelled banana twice in my comment. Yet one more reason Dan Valenti is better writer than I am.
As Jimmy Durante said, CHUCK, “Lady, dat ain’t a banana. Dat’s my nose.”
Your posts still have appeal.
Charles, do you think this banks going under is Bidens fault and if so how much is his fault? Thank you for your replay.
Let’s put it this way it’s Biden’s turn to watch the henhouse evidently the roosters are shitting all over the lot
Question is wrong, FH. It’s not whose fault is the failure – that fault belongs to the bank managers and the non-risk adverse depositors who were responsible for their deposits (knowing they were not insured.)
The question is how much future damage has Biden guaranteed by bailing them out.
OH. I did not get that from the way Dan explained it. Maybe Charles will shed some more light on it?
https://apnews.com/article/credit-suisse-banking-shares-plunge-switzerland-ba1861aa8b61170c00a2789287dc9a08
Rumor has it that a very important and well known Pittsfield Citizen will be running for Mayor.
I’ll send the info to Dan as soon as I can confirm.
I’ll know before Monday Dan.
Hop to it!
Could be Andrea a Harrington. She just established residency on Utility Drive in Pittsfield.
I’m tyrying to find the joke in that.
Location of the sewage plant
EK ? Eagle lackey.
Green Bay Packers quarterback Aaron Rodgers intends to play for the New York Jets
?c=16×9&q=h_270,w_480,c_fill/c_thumb,g_face,w_100,h_100
By David Close, CNN
Updated 2:14 PM EDT, Wed March 15, 2023
Good move if they don’t overpay
That’s just it, though. To get him, they will have to overpay. The Pack is in the driver’s seat, since he is under contract to them. Reminds me a little when the Jets got Farve near the end of his career. I’d stick with Zach Wilson. He’s only 23. No. 2 pick. Has a big upside.
I wonder if the Giants broke their bank when they traded for Tittle? Probably not much of a parallel situation.
The Lints pulled off a heist when they traded with the 49ers for YAT. Instead of giving up an equal star for a four-time Pro Bowler, the 49ers parted with guard Lou Cordileone, a second-year player from Clemson who had been a first-round selection in 1960. Cordileone was a solid player but he wasn’t a star. The SF coach had installed a shotgun offense and wanted a young John Brodie to run it, not Tittle. YA didn’t want to be a clipboard holder, and he complained. The 49ers basically gave him away. YAT paid immediate dividends–three straight Eastern Conference championships in 61, 62, and 63. When to the NFL Championship game each year.
The failure of SVB *was* Donald Trump’s fault, pure & simple. He removed the regulations that required SVB to go through the stress tests that act as a check on bank solvancy. “If Biden had not taken the action, some fraction of the uninsured deposits would be lost.” Yes, Trump blew it, and Biden bailed him and SVBs deposetors out.
“Trump blew it,” but yet prior to 2023 Xiden, Pelosi, Schumer, and the D-crew, had control of the executive and legislative branches of government and did NOTHING but push a woke agenda, but “Trump blew it.” That’s rich.
This post is right up there in the A$$ Clown category that TSC belongs to. TSC there is a new member to join you.
Under the D-crew, banks were forced to behave responsibly. If you remove restrictions on banking like Trump & company did, guess what, banks will take advantage and behave irresponsibly.
What restrictions? Are you just being an msnbc parrot?
What happened to ‘buyer beware’ in unsecured investments? When Krugman, ex board member of Enron wants to shift the blame, I know better than to listen.
Krugman is an obdurate simpleton. But still qualified to write for the fake news NY Times.
Give him credit, he knew when to split from Enron – like two weeks before it blew up everyone’s retirement accounts.
He’s rarely correct about anything
You don’t win a Nobel prize by being an obdurate simpleton.
You do if you’re a left wing kiss ass!
Tyer gets all kinds of awards too. No more need be said.
She may even get a Nobel Prize in Mayorals. Why not? We got them for chemistry, biology, astrophysics, but economics? – a dubious field at best.
If I may, I would like to charitably nominate her for the EPIC FAIL award. Watch any youtube Blooper video and you will see all of her idols and mentors.
True, but neither do you NOT win a Nobel by being a simpleton.
Indeed. You have to draw a line. Tyer has been a colossal failure. Seven years plus and her biggest blight promise Hess still stands. She’s a joke.
She had the city take one toxic waste site so why not this one?
0’bama won one simply because he was elected. He was president of 57 states
PFH, I don’t know anything about krugman and ‘buyer beware’ for unsecured deposits is of course true, but what you are claiming then is ‘whoops, sorry depositors, you hafta eat your loss’. The problem with that is the downward spiral that follows. So it is best for controls to be baked in so the default doesn’t occur in the first place.
Dems killed Glass-Steagall. Best not bring politics into this.
Point is Biden is bailing out risk. That policy removes caution as a consideration for investors and it transfers risk to responsible investors.
I take your point, but it is still best to have regulations in place so the default doesn’t occur in the first place
Then bring back Glass-Steagall. There were no bank bailouts until Clinton repealed it. All in the name of ‘freedom’ and modernization.
You are trying to jam common sense in to an area that rejects it.
But nice try.
Thanks snark shark.
Truth in advertising
But puffery?
Fake news
Is that all you can say, br?
50 democrats signed on to that in 2018.
That’s fine — bad idea no matter who signs on.
Just as smart as a ewe. Sounds about right.
I love how the U.S. Government says we are the leader of a rules-based international coalition that upholds the law. What about the U.S. Government’s invasion of Iraq (for its oil reserves)? What about all of the lawless dictator-led countries the U.S. Government has favored, such as Saudi Arabia’s MBS (for its oil reserves). What about the fact that U.S.A. is the number two polluter of greenhouse gas emissions in the world second only to China, which burns a lot of coal. What about the fact that the U.S. Government profits off of arms sales and war(s). What about the many millions of innocent Peoples the U.S. Government has killed in endless military conflicts since the end of WW2. Don’t we realize that the rest of the world doesn’t listen to the U.S. Government’s arguments given the fact that the U.S. Government is part of the problem!? We need to stop all of the hypocrisy, greed, corruption, military conflicts, pollution, and inequity!
Here’s your greenhouse gas
https://youtu.be/5J-LvMxKvFY
Now Biden is taking down European banks. Someone please stop him! It is all his fault and why does he hate banks so much? OMG
By Tom Westbrook, Saeed Azhar and Scott Murdoch
(Reuters) – Credit Suisse on Thursday said it would borrow up to $54 billion from the Swiss central bank to shore up liquidity and investor confidence after a slump in its shares intensified fears about a global banking crisis.
The Zurich-based bank’s announcement helped reverse some of the heavy share market losses and restored confidence in wider financial markets, which were battered on Wednesday and into Asia trade on Thursday as investors fretted about potential runs on global bank deposits.
In its statement, Credit Suisse said it would exercise an option to borrow from the central bank up to 50 billion Swiss francs ($54 billion). That followed assurances from Swiss authorities on Wednesday that Credit Suisse met “the capital and liquidity requirements imposed on systemically important banks” and that it could access central bank liquidity if needed.
Credit Suisse is the first major global bank to be given an emergency lifeline since the 2008 financial crisis and its problems have raised serious doubts over whether central banks will be able to sustain their fight against inflation with aggressive interest rate hikes.
Do you people understand that deregulated bank and deregulated railroads are what Republicans run on to get elected…..Inflation is down with oil and gas at very low prices.Food is coming down and lol we now have a banking problem.Republicans don’t even recognize their own handwork anymore….
Republicans want to kill labor and it’s not happening yet
Did you wake up with your head in your A$$ again TSC? “Inflation is down and gas at very low prices. Food is coming down…” Where? Certainly not where I live.
It seems he never has his head outside of his behind.
Agree. That’s about the dumbest statement I’ve heard. Except for the climate change by Dodo.
While the explanation of your go-to expert was noble, I am afraid it will fall on deaf ears. Even moderately intelligent people do not really understand how the economy works. I recall in the late 70’s when inflation was running rampant, one colleague actually suggested that the US Government simply print more dollars and give people more money. He simply did not understand the concept of dilution. Most people don’t. With respect to the impact on the Biden administration, I suspect that it will be minimal at most. As long as the administration’s excessive funding of social programs continues as the status quo, a large portion of the American public will remain satisfied. All of this is cyclical. Unfortunately, we are simply seeing the beginning of a much needed “shake out” of the economy. It is getting attention due to the fact that it is hitting the pocket books of a segment of the economy that has been extremely supportive of reckless Government spending over the last few years. As they say, the Piper is Calling.
B17
Excellent points.
A must-read……
https://reclaimthenet.org/silicon-valley-bank-collapse-cbdc
Is there anyone as dumb as Kamala?
Answer – her husband!
In this case, two halves don’t make a full loaf!
https://thefederalist.com/2023/03/15/kamala-harris-husband-the-holocaust-and-going-to-a-school-board-meeting-are-interconnected/
Just a reminder Dan is working for Krol
Word has it Stooge is for Krol.
There’s no business like Krol business
Dans not stupid. Marchetti performance at the last council meeting was atrocious.. Let me remind you Marchetti first council meeting,I believe in January. he forgot to do the roll call?
Who says he can’t. Ask yourself? Do you really want Marchetti?
I’m working for Krol. He just doesn’t know it.
Stooge works for the local politicians. And he does it on your dime. The School dime.
Has Jimmy Ruberto picked a candidate yet?
He’s going to the movies. I saw him picking his seat.
Why is Donna back in town”
Who here remembers the Trump Coup on 1/6/2020?…Remember FOX viewers they told you Trump won and some morons still believe it because they never turned the channel
There was no coup. Try harder.
With him just a coup coup
Trump in 2024. We’re coming !
https://www.theepochtimes.com/investor-carl-icahn-issues-grim-warning-on-us-economy-breaking-down_5124594.html
Where does it say in the Constitution a blog can’t support an individual running for Mayor?