SVB Failure will rock California's economy

[Ron Burgundy]

What about those that identity as

I though about that but I don’t live in CA.
I like R&B, BBQ, and old Cadillacs. How dare they tell me I’m not black.

 

[Confluence]

“The problem is the bond market, and my prediction, I called Lehman Brothers years ago, and I think the next bank to go is Credit Suisse,” Kiyosaki said during a Monday appearance on Fox Business Network.

Steeltime was right.....be careful with the equities and watch this global canary as it moves in the coal mine.

The European banks are generally less safe than US Banks, but back in 2010 Bomma opened a pipeline from the NY Fed to the EU Central banks....this may be the first real test of that immediate liquidity. Brace yourself, because this could fix the present inflation very fast.

 

[Punxsutawney]

“The problem is the bond market, and my prediction, I called Lehman Brothers years ago, and I think the next bank to go is Credit Suisse,” Kiyosaki said during a Monday appearance on Fox Business Network.

Dude might be a prophet.

https://www.cnbc.com/2023/03/15/credit-suisse-shares-slide-after-saudi-backer-rules-out-further-assistance.html

This banking crisis has definitely taken on a new level of severity, as we're not just talking smaller, regional banks anymore.

 

[Steeltime]

Don’t forget reparations to all blacks who have lived in CA at least ten years.

Go for it! Make it $10 million each! Whee, liberal ideas never fail!!

P.S. So freaking glad I moved out of CA in 2018. California now is looking at trying to tax individuals for three years after they move out* of the overpriced open sewer and opium den. Suck it, *******!

* Blatantly unconstitutional. Shapiro v Thompson, 394 U.S. 618, 629-630 (1969) ["But the purpose of inhibiting migration by needy persons into the State is constitutionally impermissible. This Court long ago recognized that the nature of our Federal Union and our constitutional concepts of personal liberty unite to require that all citizens be free to travel throughout the length and breadth of our land uninhibited by statutes, rules, or regulations which unreasonably burden or restrict this movement. ... 'The constitutional right to travel from one State to another . . . occupies a position fundamental to the concept of our Federal Union. It is a right that has been firmly established and repeatedly recognized.'"]

 

[Steeltime]

P.S. The Dow Jones is collapsing. Down 2% and counting so far. I told you guys to get your money out of the market back in September, 2022. I hope you listened.

 

[Sarge]

It's not collapsing. Yet. There are definitely worrying signs. Gonna be interesting and probably painful to watch.

 

[xjx]

I'm worried.

 

[Steeltime]

It's not collapsing. Yet. There are definitely worrying signs. Gonna be interesting and probably painful to watch.

Oh, it's collapsing. Federal gov't kinda, sorta bailed out SVB depositors, and the market loves government money, so that staunched the bleeding for 4 hours yesterday.

But the artery is still sliced open and when the Fed announces another 25 point bump, watch for more troubling signs from banks that were relying on the continued wonders of QE. One or two more banks start wobbling and the dominoes start to go. One reliable model indicates we go into a recession, and market suffers a serious drop close to 15% (DJIA down to 26,500).

 

[JMM]

Oh, it's collapsing. Federal gov't kinda, sorta bailed out SVB depositors, and the market loves government money, so that staunched the bleeding for 4 hours yesterday.

But the artery is still sliced open and when the Fed announces another 25 point bump, watch for more troubling signs from banks that were relying on the continued wonders of QE. One or two more banks start wobbling and the dominoes start to go. One reliable model indicates we go into a recession, and market suffers a serious drop close to 15% (DJIA down to 26,500).

I have a relative who recently renovated a house they purchased last year. It's been on the market for a month. No takers. They've already dropped the price 50k. I fear they are going to lose their *** on this.

 

[Steeltime]

I have a relative who recently renovated a house they purchased last year. It's been on the market for a month. No takers. They've already dropped the price 50k. I fear they are going to lose their *** on this.

Here is the cycle, known to everybody on the planet except those responsible for running the government:

• Pump a bunch of unbacked currency into the money supply to "stimulate" the economy.
• That brings on inflation, usually in direct proportion to the amount of unbacked currency pumped into the money supply.
• Increased inflation triggers increased short-term interest rates by the Federal Reserve (which is not actually part of the government but whatever).
• The pumped-up short term interest rates result in increased longer term interest rates on things like mortgages.
• The increased mortgage rates diminish the number of eligible purchasers for homes.
• Leading to a decline (crash) in the housing market.
• The decline (crash) in the housing market has a massive ripple effect, helping to spur on recession.
• The imbeciles in charge of running things believe that printing further unbacked currency is the solution to the recession.
• That prolongs the recession as that unbacked currency counteracts the Fed's efforts to stem inflation.

Jimmy Carter, Barack Obama and Joe Biden all followed this exact path and all were shocked ... shocked and appalled that their approach was a miserable failure.

 

[JMM]

Here is the cycle, known to everybody on the planet except those responsible for running the government:

• Pump a bunch of unbacked currency into the money supply to "stimulate" the economy.
• That brings on inflation, usually in direct proportion to the amount of unbacked currency pumped into the money supply.
• Increased inflation triggers increased short-term interest rates by the Federal Reserve (which is not actually part of the government but whatever).
• The pumped-up short term interest rates result in increased longer term interest rates on things like mortgages.
• The increased mortgage rates diminish the number of eligible purchasers for homes.
• Leading to a decline (crash) in the housing market.
• The decline (crash) in the housing market has a massive ripple effect, helping to spur on recession.
• The imbeciles in charge of running things believe that printing further unbacked currency is the solution to the recession.
• That prolongs the recession as that unbacked currency counteracts the Fed's efforts to stem inflation.

Jimmy Carter, Barack Obama and Joe Biden all followed this exact path and all were shocked ... shocked and appalled that their approach was a miserable failure.

Not sure if the last two are surprised. I think it was planned. After all, US bad and must be brought down to size.

 

[Steeltime]

Not sure if the last two are surprised. I think it was planned. After all, US bad and must be brought down to size.

Hard to argue your point. I mean, how are Bammy & Biden surprised when the exact same results occur as did previously with the same approach??

"God, last time I touched red-hot stovetop I burned the **** out of my hand. But not this time! This time will be different!"
- BammyBiden

 

[wig]

Has there been anything this administration has done that has not ****** Americans?

Well... To put it in perspective, there's "I'm an American in America" ******

And then there's "I'm an American in Afghanistan" ******.

Count yourself lucky!

 

[Ironcitysteelers]

Well... To put it in perspective, there's "I'm an American in America" ******

And then there's "I'm an American in Afghanistan" ******.

Count yourself lucky!

Well I did not specify where, but valid.

 

[madinsomniac]

Wealth redistribution at its finest… many of us pointed out the hyperinflation plan for decades… globalists always thought it wasn’t fair the US benefited from all its wealth from its natural resources and they have been itching to blow it up for generations… print trillions, cut oil and gas… inflate everything and basically wipe out tge value of everyone’s savings

 

[Ron Burgundy]

Wealth redistribution at its finest… many of us pointed out the hyperinflation plan for decades… globalists always thought it wasn’t fair the US benefited from all its wealth from its natural resources and they have been itching to blow it up for generations… print trillions, cut oil and gas… inflate everything and basically wipe out tge value of everyone’s savings

Savings are racist.

 

[xjx]

But you see, savings is counter to equity.

 

[Djfan]

Janet yelled is the Secretary of the Treasury.

 

[madinsomniac]

Savings are racist.

Tgey really need to up that inflation faster… lets raise the minimum wage to 20 bucks an hour… gotta get them peasants back for all the elites’ fifedoms…

 

[Confluence]

Janet yelled is the Secretary of the Treasury.

The large US banks not only dictate policy of the smaller US banks, but of smaller countries around the globe.
Uruguay's central bank has had to clear all international money transfers thru Bank of America since the Latin Debt Crisis in 1999. This means that the entire ******* foreign country follows US banking law, as per Bank of America edict.
How is that for colonization?

 

[Ironcitysteelers]

The large US banks not only dictate policy of the smaller US banks, but of smaller countries around the globe.
Uruguay's central bank has had to clear all international money transfers thru Bank of America since the Latin Debt Crisis in 1999. This means that the entire ******* foreign country follows US banking law, as per Bank of America edict.
How is that for control?

 

[Ron Burgundy]

Tgey really need to up that inflation faster… lets raise the minimum wage to 20 bucks an hour… gotta get them peasants back for all the elites’ fifedoms…

Increase the supply of unskilled labor and raise the cost at the same time. Sounds like a plan.

 

[Steelr4evr]

But you see, savings is counter to equity.

If you can save, then you have too much and it should be redistributed to those with less...

 

[suncitysteel]

I grinned a little, thinking that my deposits are OK at my local credit union. Then, a split second later, I realize my funds are "guaranteed" by the NCUA.... just another corrupt government-backed institution.