The Greatest depression is coming, are you ready?
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Hey as long as the Fed can eliminate inflation and also stop raising interest rates and as long as we don't get a whole bunch of other banks going bust around the world, and as long as Russia and China don't do anything to harm our dollar, and as long as the rest of the world keeps buying US bonds, and as long as the republicans and democrats can work together to make a budget that says to the world we are serious about putting an end to our spendthrift ways, we are cutting up the credit card, and, oh forget it, who are we kidding.
The facts often are the same, the difference is what they make of them. For example, suppose we had a car run over a child in a school zone.
One source could focus on the fact the driver was not drunk, passed the test for intoxication and was not speeding.
The other source could focus on the fact that the driver was texting at the time of the accident.
When talking about financial news you will find that they are very scared of lawsuits because rich people are litigious. So they will avoid comments that have liability. If you say the banks are collapsing, that has liability. If you say that there are 186 other banks that people should be aware of, that has no liability.
Often they will say things that are meaningless "we are monitoring the situation", or "we are concerned" etc.
The situation in economics is always a complicated algebra problem. There are a couple of key factors, they go together in a certain way, and based on that you can draw a curve that tells you where the economy is headed. Rising interest rates on bonds means that value of the bonds everyone is holding will go down. That is a very simple and straightforward relationship. The question is how fast will rates rise (extremely fast, record breaking fast) and how high will they go (higher than they are now, that is for sure) and how widespread is the damage (worldwide, everyone uses US bonds for their financial system).
That alone tells you that either mortgages will dry up or house prices will drop significantly. Either way that is like a twin engine plane losing one of their engines. It also means that car loans will dry up, that is the other engine.
Still if you are up at 30,000 feet you can land safely without your engines. So the question is how high is the world's economy flying? Well the pandemic certainly brought us down, maybe to 10,000 feet and the war in Ukraine has brought us down further, maybe 5,000 feet.
So we will have to land immediately. Swiss banks are being forced into a shotgun wedding, and the same will happen in the US and who knows, Germany, UK and Japan could also fall quickly as well.
Think of Gold and Silver as a parachute. If they continue to spike higher the plane will crash and the pilots are bailing.
One source could focus on the fact the driver was not drunk, passed the test for intoxication and was not speeding.
The other source could focus on the fact that the driver was texting at the time of the accident.
When talking about financial news you will find that they are very scared of lawsuits because rich people are litigious. So they will avoid comments that have liability. If you say the banks are collapsing, that has liability. If you say that there are 186 other banks that people should be aware of, that has no liability.
Often they will say things that are meaningless "we are monitoring the situation", or "we are concerned" etc.
The situation in economics is always a complicated algebra problem. There are a couple of key factors, they go together in a certain way, and based on that you can draw a curve that tells you where the economy is headed. Rising interest rates on bonds means that value of the bonds everyone is holding will go down. That is a very simple and straightforward relationship. The question is how fast will rates rise (extremely fast, record breaking fast) and how high will they go (higher than they are now, that is for sure) and how widespread is the damage (worldwide, everyone uses US bonds for their financial system).
That alone tells you that either mortgages will dry up or house prices will drop significantly. Either way that is like a twin engine plane losing one of their engines. It also means that car loans will dry up, that is the other engine.
Still if you are up at 30,000 feet you can land safely without your engines. So the question is how high is the world's economy flying? Well the pandemic certainly brought us down, maybe to 10,000 feet and the war in Ukraine has brought us down further, maybe 5,000 feet.
So we will have to land immediately. Swiss banks are being forced into a shotgun wedding, and the same will happen in the US and who knows, Germany, UK and Japan could also fall quickly as well.
Think of Gold and Silver as a parachute. If they continue to spike higher the plane will crash and the pilots are bailing.
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Should we bail out SVB?
Depends on your situation. Think of SVB as a nice mansion in the nice part of town. If that house goes into foreclosure it would affect the home prices of the people who live on that street. So if you own a mansion on this street (a major bank in the US) then yes, the amount you pay with your tax money will be a small percentage of how much this benefits your own homes value.
But what about the rest of the homeowners in this town (small business owners). Probably for the vast majority of them the cost in taxes will exceed any benefit.
How about the people who don't own homes but are renting apartments? Are you kidding? You are a waitress trying to make ends meet and they want you to help that rich arrogant jerk who lives next to the golf course?
Depends on your situation. Think of SVB as a nice mansion in the nice part of town. If that house goes into foreclosure it would affect the home prices of the people who live on that street. So if you own a mansion on this street (a major bank in the US) then yes, the amount you pay with your tax money will be a small percentage of how much this benefits your own homes value.
But what about the rest of the homeowners in this town (small business owners). Probably for the vast majority of them the cost in taxes will exceed any benefit.
How about the people who don't own homes but are renting apartments? Are you kidding? You are a waitress trying to make ends meet and they want you to help that rich arrogant jerk who lives next to the golf course?
Russia's Medvedev goes on tirade against International Criminal Court, threatens The Hague with missile strike
https://www.foxnews.com/world/russi...criminal-court-threatens-hague-missile-strike
https://www.foxnews.com/world/russi...criminal-court-threatens-hague-missile-strike
Two key principles
Presumption of innocence and ignorance is not a defense.
Right now we see the people responsible for the crimes claiming ignorance, that is not a defense.
When they are the ones who are guilty they are screaming and jumping up and down about the presumption of innocence, hence Hunter not being arrested for years.
But when it is their opponents like Trump they are screaming that they are guilty and the key should be thrown away without even having a trial.
Presumption of innocence and ignorance is not a defense.
Right now we see the people responsible for the crimes claiming ignorance, that is not a defense.
When they are the ones who are guilty they are screaming and jumping up and down about the presumption of innocence, hence Hunter not being arrested for years.
But when it is their opponents like Trump they are screaming that they are guilty and the key should be thrown away without even having a trial.