Which is exactly what the Biden administration and the global elitists want to happen. 
This reset will be like Michael Corleone killing all his enemies before moving to Nevada.
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The Greatest depression is coming, are you ready?
- Thread starter ZNP
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I don't think it is that simple. There are a lot of useful idiots. It is like the mafia, everyone loves you until it looks like the feds might arrest you and then its safer to just kill you. Put out enough information to let them know you are closing in and they will kill everyone involved, saving you a lot of trouble with trials and prison.
This reset will be like Michael Corleone killing all his enemies before moving to Nevada.
This reset will be like Michael Corleone killing all his enemies before moving to Nevada.
We have an economic crisis in Egypt, Yemen, Sudan, Pakistan, and Sri Lanka. We have an energy crisis in Africa.
The problems are due to very great increase in the cost of food (basically doubling in cost) and likewise with energy. In the US people are maxing out their credit cards, in these other countries they don't have credit cards.
No matter how you look at it, bailing out these banks will make things worse. The US is doing it to avoid thousands of people becoming suddenly unemployed, but if that were to happen it would be anti inflationary and might begin to help the situation. As long as you pump funny money into these businesses to keep them pretending to be afloat inflation goes up, interest rates have to go up, and financial catastrophe worldwide will take place. The only option people will have will be to dump the US dollar (sell US bonds) which will cause bonds to decrease even more.
To keep it simple, the US bailing out these banks is helping the riches of the rich while sticking it to 80% of the US and pretty much the rest of the world.
The problems are due to very great increase in the cost of food (basically doubling in cost) and likewise with energy. In the US people are maxing out their credit cards, in these other countries they don't have credit cards.
No matter how you look at it, bailing out these banks will make things worse. The US is doing it to avoid thousands of people becoming suddenly unemployed, but if that were to happen it would be anti inflationary and might begin to help the situation. As long as you pump funny money into these businesses to keep them pretending to be afloat inflation goes up, interest rates have to go up, and financial catastrophe worldwide will take place. The only option people will have will be to dump the US dollar (sell US bonds) which will cause bonds to decrease even more.
To keep it simple, the US bailing out these banks is helping the riches of the rich while sticking it to 80% of the US and pretty much the rest of the world.
Although SVB is the second largest bank failure in US history at 209 Billion, if you look at the three banks that failed in the last week: Silvergate, SVB and Signature you get a combined assets of 329 Billion which would be the biggest failure in US history.
If you understand how banks work, buying US bonds to pay interest on deposits then you would understand every bank is in serious trouble. If interest rates are up to about 3% on deposits why would you keep it at a bank paying 0%, yet these banks have many bonds that have lost value, if they sell them they take a heavy loss, but if they keep them they can't afford to pay 3%. This means this a perfect opportunity for a bank to come in and seize market share. When people move money from one bank to another the other bank will have to sell their bonds and realize their losses and perhaps go bankrupt.
This is not just a problem in the US, it is a problem worldwide.
Now combine this with the inflation which is draining people's accounts
And combine this with interest rates on credit cards, car loans, and mortgages rising dramatically and people will have to pull money from their accounts.
And yet, it is even worse than this. Think of all those people who borrowed money against their house. Many of these houses are now selling for 20% less because of the rising interest rates. If you adjust the banks assets on these houses by dropping the value of those mortgages by 20% many, many more will be bankrupt.
If you understand how banks work, buying US bonds to pay interest on deposits then you would understand every bank is in serious trouble. If interest rates are up to about 3% on deposits why would you keep it at a bank paying 0%, yet these banks have many bonds that have lost value, if they sell them they take a heavy loss, but if they keep them they can't afford to pay 3%. This means this a perfect opportunity for a bank to come in and seize market share. When people move money from one bank to another the other bank will have to sell their bonds and realize their losses and perhaps go bankrupt.
This is not just a problem in the US, it is a problem worldwide.
Now combine this with the inflation which is draining people's accounts
And combine this with interest rates on credit cards, car loans, and mortgages rising dramatically and people will have to pull money from their accounts.
And yet, it is even worse than this. Think of all those people who borrowed money against their house. Many of these houses are now selling for 20% less because of the rising interest rates. If you adjust the banks assets on these houses by dropping the value of those mortgages by 20% many, many more will be bankrupt.
Remember the WAMU collapse? It was huge.
BTW.....if I recall WAMU apx 600 billion
................................SVB apx 400 billion.......second largest in all of US history.
Everyone thinks that FDIC insurance is boilerplate. IT IS NOT. It is just a fractional risk insurance scheme just like any other. And it can be EASILY drained and made to go bust.
Washington Mutual - Wikipedia
"This led the Federal Reserve and the Treasury Department to step up pressure for WaMu to find a buyer, as a takeover by the Federal Deposit Insurance Corporation (FDIC) could have been a severe drain on the FDIC insurance fund, which had already been hard hit by the failure of IndyMac that year. "
BTW.....if I recall WAMU apx 600 billion
................................SVB apx 400 billion.......second largest in all of US history.
Everyone thinks that FDIC insurance is boilerplate. IT IS NOT. It is just a fractional risk insurance scheme just like any other. And it can be EASILY drained and made to go bust.
Washington Mutual - Wikipedia
"This led the Federal Reserve and the Treasury Department to step up pressure for WaMu to find a buyer, as a takeover by the Federal Deposit Insurance Corporation (FDIC) could have been a severe drain on the FDIC insurance fund, which had already been hard hit by the failure of IndyMac that year. "
Think of it like a ponzi scheme, shell and pea game, three card monte, and musical chairs all rolled into one.
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@INArteCarloDoss
US Deposits are insured up to $ 250 K, except if you are a large Democrat donor, in which case the limit does not apply. Thank you for banking with DNC.
Understand the lie. When interest rates went up the value of the stocks the banks were holding went down. However, they didn't have to declare that loss because they are choosing to hold them to maturity. As a result they can still pretend to be holding sufficient assets to cover the potential liabilities. However, if you say you are holding a bond to maturity you can't sell it early without a penalty! So the banks are in an even worse bind in reality. What you are seeing is the curtain being pulled back on the scam.
Here We Go… First Republic Bank Plunges 66% in Pre-Market – Western Alliance Bank Down 62% – Customers Line Up in California!
https://www.thegatewaypundit.com/20...bank-down-62-customers-line-up-in-california/
https://www.thegatewaypundit.com/20...bank-down-62-customers-line-up-in-california/
Really? Didn't the big investors hear that "taxpayers are not going to lose money"? Didn't that allay their fears? Biden is a magician, he will buy up a bankrupt bank that no one else will buy, he'll do it with taxpayer money, but hey, taxpayers will not lose anything because that is how amazing he is. He'll make sure no one is left behind in Afghanistan, and unlike the bad orange man he'll make sure no 3am tweet starts WWIII
The guy is amazing, now who wants ice cream?
The guy is amazing, now who wants ice cream?
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They are getting value at par when they do swaps at the FED window. This mechanism is saving some.....for now.
Problem is.....if the failing banks DO NOT have gov't collateral, they cannot participate and will go bust.
And another thing......if shareholders flee (which is happening right now, TODAY), the bank will go bust due to that crisis.
Problem is.....if the failing banks DO NOT have gov't collateral, they cannot participate and will go bust.
And another thing......if shareholders flee (which is happening right now, TODAY), the bank will go bust due to that crisis.
The banks are going to fail because interest rates have skyrocketed and inflation is burning up the world's economy. Biden's plan to bail them out is like throwing gasoline on the fire.
Suppose 75 million "domestic terrorists", the "deplorables" of America were to shake off the dust of this corrupt regime and walk away.
Suppose 75 million "domestic terrorists", the "deplorables" of America were to shake off the dust of this corrupt regime and walk away.