Anyone watching the collapse of SVB?

In reply to Opti :

Have you heard of the Sterling?

I actually haven't! I've only recently begun to even find things about the economics of that era, which is really goddamn infuriating to me because it all explains SO MUCH as to why World War 2 happened, or why it happened the way it did. Like, I know Britain basically chose to take a default immediately post World War 1, but I haven't yet found a good resource to go into detail about it and how it changed things.

NOHOME said:

Pretty sure we had this kinda thing covered before some greedy individuals decided that they had a better idea of how to separate people from their $$$.

What Is the Glass-Steagall Act?

The Glass-Steagall Act, passed in 1933, forced commercial banks to refrain from investment banking activities in order to protect depositors from potential losses caused by bank speculation in stocks. Glass-Steagall was largely repealed in 1999

It's not politics- just history now- to now say that the GOP has partially inflamed or set the stage for every "crash" like this since 2008 from repealing financial laws.

Glass-Steagall was repealed under the Clinton admin, but we certainly have this habit of re-learning (or not) why we enact regulations in the first place.

j_tso said:

Glass-Steagall was repealed under the Clinton admin, but we certainly have this habit of re-learning (or not) why we enact regulations in the first place.

Red house and congress- and they had attempted to impeach Clinton, so slick willy became modifiable to stay in. Not to make it seem like he gets a pass or anything for it of course.

In reply to GIRTHQUAKE :

There is equal share of blame on both sides of aisle. I know that doesn't play well these days, but it's the truth. You might be surprised which former politicians lobbied for reduced bank oversight in the last few years. 

In reply to tester (Forum Supporter) :

Bottom line is that bank depositors did not used to be gamblers.  We just found out that depositors are on the same spinning roulette wheel as wall street gamblers; they just don't realize it at the time of deposit.

Your elected representatives ARE responsible for this regardless of who you like.

In reply to NOHOME :

Kind of like the time congress recently decided to rescind the law that forbade selling US produced oil to foreign countries thus pricing our oil on the world market instead of giving us a price break considering that we are the largest oil producer in the world.

tester and NOHOME are 100% spot on.  If you are picking a side on this one you are completely wrong.  The list of people on both sides that created this mess over decades is very long.  It's time to stop being partisan and be analytical, critical, and honest if these problems are going to be addressed.  If that doesn't happen soon, the future is going to be worse.  That's really the sad part, everything is still fixable at this point.  The first step is to stop listening to any one side's talking points (propaganda).  Start thinking about each other, your neighbors, friends, associates, and kids for Fs sake. 

And today I was listening to actual numbers and doing quick math in my head.  That makes this ever more pathetic.  SVB apparently had $180 billion in assets.  They went under due to a $42 million dollar bank run.  Let's translate that to something we can all understand.

$180,000,000,000 and $42,000,000..... let's just lop off zeros. 

Let's say you have $180,000 in assets (lop off 6 zeros).  They couldn't make a $42 call......  that's insane. 

Want to know the worst part?  Lot's of banks are similarly leveraged.  This happened due to changes to numerous to mention in one thread.  If you want to get a start though, figure out what Andrew Jackson said and did in 1834, and look at why Lincoln was really killed and what he had to say about money.  Start there.  And then you can get to the Federal Reserve Act of 1913 and figure out what Wilson was reported to have said as he was dying.  Then you can figure out what happened in the 1930s, and what Nixon did.  And then you can get to Carter, Reagan, Bush, Clinton, Bush, Obama, Trump and the current guy.  Everyone since Nixon has had a sick disregard for misuse of taxpayer funds and spent money without regard to creating an unsustainable debt burden on future generations.  Make no mistake the bailout of SVB just went to future generations that can't vote and aren't even born yet.  That is the current system.  It also sets a precedent that will make banks take even bigger risks just like the actions of 2008 did.  If you haven't figured it out yet, SVB had a significant amount of money in mortgage securities and bonds. 

And also, make no mistake, while us peons are arguing over which side did it, we are being hurt the most.  And that's why I challenge all of you on the economy, environment and energy.  Stop listening to any one side's talking points.  It's detrimental to all of us. 

An Uber driver in Las Vegas this week told me he keeps all his cash in a safe at home.  Naturally I had to joke and ask his address.  

It's interesting all the viewpoints on the street. 

In reply to AnthonyGS (Forum Supporter) :

I literally don't even know where to start asking why Lincoln was really killed.

RevRico said:

In reply to Mr_Asa :

Because the civil war was more about stopping the creation of a central bank than it was about slavery, but that doesn't fit the modern narrative so it tends to get left out of school books. 

I don't want to go off the rails, but come on. I'm not saying economic factors weren't a factor, but to say it was "more" about that than slavery is just blatantly false. The seceding states said so, over and over.

Mr_Asa said:

In reply to AnthonyGS (Forum Supporter) :

I literally don't even know where to start asking why Lincoln was really killed.

www.google.com

Tom_Spangler (Forum Supporter) said:

RevRico said:

In reply to Mr_Asa :

Because the civil war was more about stopping the creation of a central bank than it was about slavery, but that doesn't fit the modern narrative so it tends to get left out of school books. 

I don't want to go off the rails, but come on. I'm not saying economic factors weren't a factor, but to say it was "more" about that than slavery is just blatantly false. The seceding states said so, over and over.

Thanks for saying this. I won't dive further off topic, but a friend made an allegation about Jefferson recently. The fun bit about trying to play amateur historian about the US in this period is that everyone wrote everything down. Just read the readily available source material. You can't miss. Wonder what a specific founder thought about a subject? Chances are there are hundreds of letters available for free and online from that founder organized or at least searchable by topic.

Tom_Spangler (Forum Supporter) said:

RevRico said:

In reply to Mr_Asa :

Because the civil war was more about stopping the creation of a central bank than it was about slavery, but that doesn't fit the modern narrative so it tends to get left out of school books. 

I don't want to go off the rails, but come on. I'm not saying economic factors weren't a factor, but to say it was "more" about that than slavery is just blatantly false. The seceding states said so, over and over.

"It was about state's rights!"

"State's rights to do what, exactly?"

"Uhhhh..."

AnthonyGS (Forum Supporter) said:

... and look at why Lincoln was really killed and what he had to say about money.  Start there. 

You know they found the treasure under the church on Wall St.

Wow you all are lazy.  
 

https://www.goodreads.com/quotes/9668566-the-money-powers-prey-upon-the-nation-in-times-of

There are plenty more quotes and thoughts from the people that wrote our laws.  
 

The fact most people don't understand simple economics and simple history should alarm you.  The fact that you venture off on ridiculous tangents only serves to prove what I've said about education on this forum numerous times.  I wish it were different.  If you have any forethought at all, prepare for more bad things.  The bad things will continue to happen until people chose differently.  

And for those prepping there is no one cataclysmic event.  We are in a slow painful decline to Idiocracy.  Just like in that movie people get their medical knowledge from a company that got rich because they accidentally invented an erection pill.  Brawndo.....  it's clearly what everyone craves.  

I have a friend who attended college with me. He's decent enough in person. On Facebook, he only talks about how much he hates Facebook. Every few weeks he posts a long thing, on Facebook, about how terrible Facebook is, and how we should never use it.

I'm not sure why that came to mind just now.

Robbie (Forum Supporter) said:

AnthonyGS (Forum Supporter) said:

2)  You all still fail to understand the implication of all of the debts in the world, inflation, and the future.  The only comment I've ever made that a small fraction of you understand is that the entire economy is debt based.  That debt is dependent on future payments too often from people that can't vote and aren't even born yet. 

You aren't very persuasive when you start by insulting the person you're trying to persuade.

Since we're all just repeating ourselves now!

AnthonyGS (Forum Supporter) said:

Wow you all are lazy.  
 

https://www.goodreads.com/quotes/9668566-the-money-powers-prey-upon-the-nation-in-times-of

 

There are plenty more quotes and thoughts from the people that wrote our laws.  
 

The fact most people don't understand simple economics and simple history should alarm you.  The fact that you venture off on ridiculous tangents only serves to prove what I've said about education on this forum numerous times.  I wish it were different.  If you have any forethought at all, prepare for more bad things.  The bad things will continue to happen until people chose differently.  

And for those prepping there is no one cataclysmic event.  We are in a slow painful decline to Idiocracy.  Just like in that movie people get their medical knowledge from a company that got rich because they accidentally invented an erection pill.  Brawndo.....  it's clearly what everyone craves.  

Your condescending tone aside, what exactly does that Lincoln quote prove? That he was critical of bankers? Big friggin' whoop. It's a pretty far journey from that to "why he was really killed". Lots of people had lots of reasons to want him dead, and Booth was a known Confederate sympathizer. 

And by the way, he was right. Of course the moneyed interests profiteered from that war. As they have in every war or similarly large and cataclysmic event in world history. Hell, it'll be years or even decades before we uncover the amount of graft and pocket-lining that accompanied all the Covid relief money. That's not exactly news.

AnthonyGS (Forum Supporter) said:

And today I was listening to actual numbers and doing quick math in my head.  That makes this ever more pathetic.  SVB apparently had $180 billion in assets.  They went under due to a $42 million dollar bank run.  Let's translate that to something we can all understand.

$180,000,000,000 and $42,000,000..... let's just lop off zeros. 

Let's say you have $180,000 in assets (lop off 6 zeros).  They couldn't make a $42 call......  that's insane. 

The bank run was $42 BILLION, not million.  $42 billion cash withdrawals against $180 billion total liquid+illiquid assets is what caused the collapse.

In reply to nderwater :

AnthonyGS (Forum Supporter) said:

And also, make no mistake, while us peons are arguing over which side did it, we are being hurt the most.  And that's why I challenge all of you on the economy, environment and energy.  Stop listening to any one side's talking points.  It's detrimental to all of us. 

That's very well stated AGS.  I've often said that this two party system keeps us purposely divided so that the greedsters can continue to rob us blind.  And if that weren't enough by itself, race, religion, and now gender and LGBTQ politics serve as further dividers to keep us at each other's throats instead of casting our collective gaze on the true villains.

In reply to A 401 CJ :

Probably goes beyond the two-party system.

In this world we live in, there are many very intelligent people with unimaginable wealth at their disposal. To their benefit, pretty much all governments are staffed by not-so-smart-but-greedy individuals.  The rest of us are not even in the game.

In reply to A 401 CJ :

And it's also now used as a smokescreen- this most recent culture war against trans/LGBT persons is to redirect from the fact that the GOP has basically done nothing to combat inflation or cracking infrastructure. They had 6 years of majority- 2 of supermajority- and they never produced a balanced budget or paid national debts.

NOHOME also has something I'd like to build upon- you've got government burocrats, just people, who get into office but also have serious debts from running to pay for the needed things to get their names out. Said people against millionaires/billionaires aren't gonna be capable of competing, when government workers still have to pay mortgages and for flight tickets and such. You need to have money AND Clout to be in these kinds of politics, and clout eventually runs out, so it's no wonder a lot of up-and-comers seem to fall in line. Just economics.

AnthonyGS (Forum Supporter) said:

 The fact that you venture off on ridiculous tangents

You literally just had a great point, only to claim at the last moment the American Civil War wasn't about slavery. 

I love holding off reading these threads.  I wait until it gets about 10 pages in and I read page 1 and the last page.  Never fails.  We started talking about a bank collapse, and now we're talking about Abraham Lincoln and slavery.

This is good E36 M3.