If U Seek Amy Posted March 14, 2023 Posted March 14, 2023 (edited) 45 minutes ago, ClashAndBurn said: Because Biden has made it clear that any bank of any size is too big to fail and will be given a bailout no matter what they do. Obviously as a banker, you wouldn't see the moral hazard in this, and would downplay any evidence brought to you just as "corporate environmentalist experts" on Reddit and Twitter have done on behalf of defending Norfolk Southern in the aftermath of the East Palestine, Ohio, derailment (another objectively failed response from Biden there too!). But stocks were cratering until the bailouts were announced. I think to claim as a bank employee that means you can’t understand how anyone else views it is ignorant. Workers are not corporations themselves. They often just have more understanding of the back end reality of the situation working in it. You can’t totally invalidate someone’s thoughts because they are employed in the industry but don’t run anything 😂 SVB first of all isn’t being bailed out. They are being sold if anyone wants it and deposits covered. Very different. But There absolutely is a moral hazard in bailouts. And anyone who caused this should be banned from working or owning anything in this industry ever again. It is almost criminal they aren’t in my eyes and pisses me off. But doing that for moral reasons does not mean it won’t result in hurting millions of innocent people who aren’t wealthy with retirement investments and savings that struggle to save. Bailing out banks sucks because we are saving the wealthy. But as much as you’re after them, not helping them in cases like this will have tons of innocent collateral damage. Not only the wealthy have savings and investments. I still have lots of student debt and but invest into my 401K myself. Letting them tank would tank what savings I have accumulated and hurt me a ton. There are better ways to have repercussions to advocate for those moral hazards than tanking the banking or financial system to make them suffer and hurt tons of others in response. At that point if you want everyone to suffer to hurt rich people you’re clearly an extremist with no actual care for people or the world than yourself for your own pleasure. And East Palestine was a disaster and terrible response. That’s not a “got you” moment 😂 Edited March 14, 2023 by If U Seek Amy
Bosque Posted March 14, 2023 Posted March 14, 2023 44 minutes ago, ClashAndBurn said: Because Biden has made it clear that any bank of any size is too big to fail and will be given a bailout no matter what they do. Obviously as a banker, you wouldn't see the moral hazard in this, and would downplay any evidence brought to you just as "corporate environmentalist experts" on Reddit and Twitter have done on behalf of defending Norfolk Southern in the aftermath of the East Palestine, Ohio, derailment (another objectively failed response from Biden there too!). But stocks were cratering until the bailouts were announced. The bank was not bailed out, it was shut down it quite literally did fail. also can you please explain what sort of "risky gambling behavior" SVB was engaged in that led to this? Very curious for your responsen
ClashAndBurn Posted March 14, 2023 Posted March 14, 2023 3 minutes ago, Dephira said: The bank was not bailed out, it was shut down it quite literally did fail. also can you please explain what sort of "risky gambling behavior" SVB was engaged in that led to this? Very curious for your responsen SVB dumped billions of dollars into government bonds, which counted on interest rates being close to zero. It becomes less lucrative when the Fed hiked interest rates in response to inflation. Their "gambling" was them counting on the interest rates to stay low forever. Their having to sell those assets at a loss is what sparked the initial panic and bank run. What the government is doing is still a bailout, no matter how allergic they are to the term knowing the toxic associations it has from 2008. The government is essentially socializing bank failures while bank successes remain privatized.
Bosque Posted March 14, 2023 Posted March 14, 2023 (edited) 13 minutes ago, ClashAndBurn said: SVB dumped billions of dollars into government bonds, which counted on interest rates being close to zero. It becomes less lucrative when the Fed hiked interest rates in response to inflation. Their "gambling" was them counting on the interest rates to stay low forever. Their having to sell those assets at a loss is what sparked the initial panic and bank run. What the government is doing is still a bailout, no matter how allergic they are to the term knowing the toxic associations it has from 2008. The government is essentially socializing bank failures while bank successes remain privatized. Ah yes, the crazy risky "gambling" investment of... long-dated government bonds all companies and individuals who banked with them should definitely lose all their deposits (which is money that belongs to them) for intentionally choosing a bank with such a crazy risk profile Edited March 14, 2023 by Dephira
Vermillion Posted March 14, 2023 Posted March 14, 2023 I really, REALLY need to see Peter Thiel get a prison sentence too in all this. I know it won't happen, but I can dream.
Headlock Posted March 14, 2023 Posted March 14, 2023 (edited) On 3/13/2023 at 3:55 PM, RunUpDoneUp said: I don't care about the feelings of people with cozy living when most americans are literally living paycheck to paycheck like an economic crash is their daily life. That part. That part Many people never recovered from 2008, largely due to the actions of conservatives continuing to hoard wealth and lobbying Congress to help them do it. Welcome to our worlds motherfuckers Edited March 14, 2023 by Headlock
JustLikeHoney Posted March 14, 2023 Posted March 14, 2023 (edited) On 3/11/2023 at 1:59 AM, Communion said: "Small businesses". A small business is a mom and pop convenience store who need to sell full stock to cover expenses so that they can pay the mortgage on their one and only moderately-sized single family home. People piloting their first big tech start-up's are not "small businesses". Deposits under $250k are literally insured. No one is basking in anyone's misery. Wealthy people with lots of money made huge mistakes with said money, taking giant risks, and it's reasonable that people do not want the government to bail these entities out. If you think the owner of that convenience store doesn't have more that $250,000 in the bank to help pay a $4000 - $6000 l$900 in utilities $1500 a month for two part time employees, insurance payments of General Liability, and workman's comp at least another $300 - $600 a month. Not to mention all the products that are purchased daily to sell. You are kidding yourself. $250k is probably the bare minimum they should have in the bank so they don't have any surprises that can kill their business. Do you even business? Edited March 15, 2023 by JustLikeHoney
Communion Posted March 15, 2023 Author Posted March 15, 2023 24 minutes ago, JustLikeHoney said: If you think the owner of that convenience store doesn't have more that $250,000 in the bank Over half of SVB's clients were Silicon Valley tech start-up's. Get a grip and realize the public aren't on your side.
chessguy99 Posted March 15, 2023 Posted March 15, 2023 6 hours ago, nadiamendell said: Throw them ALL in jail! Bad business decisions are not illegal.
Attitude Posted March 15, 2023 Posted March 15, 2023 On 3/13/2023 at 12:55 PM, RunUpDoneUp said: Well, the staff aren't my concern, they're just beneficiaries of a crooked book indusury who will find another job WAY sooner than people who actually need immediate help. I don't care about the feelings of people with cozy living when most americans are literally living paycheck to paycheck like an economic crash is their daily life.
Harrier Posted March 15, 2023 Posted March 15, 2023 how about we direct ire at people that actually deserve it, like the executives and politicians who pushed irresponsible deregulatory actions that caused this mess. Small and medium sized businesses, or even moderately wealthy folks, should not be punished for using an ostensibly safe bank to run their operations. There are also nonprofit depositors too - should they be ignored? If the administration was to completely abandon depositors here it would be an absolute disaster that would affect thousands of hardworking middle class people who haven't done anything wrong. it could also have huge flow on effects to other corners of the market. Protecting them, but leaving investors & executives out to dry is the right path here. I would support something like guaranteeing up to 1 million. Many small and medium businesses have over 250k deposited to pay their employees, run their business etc etc. It is not a fantastical amount of money when we're talking about a business that's paying 10+ people. Also, a tech startup or whatever doesn't inherently deserve to go up in flames. wishing economic calamity on perfectly normal people just because they're not walmart cashiers is just about hatred, envy & class resentment. you see it in the bitterness of the posts in here. sending random tech employees into poverty doesn't actually help poor people, it's just about being vengeful.
ClashAndBurn Posted March 15, 2023 Posted March 15, 2023 36 minutes ago, Harrier said: how about we direct ire at people that actually deserve it, like the executives and politicians who pushed irresponsible deregulatory actions that caused this mess. Small and medium sized businesses, or even moderately wealthy folks, should not be punished for using an ostensibly safe bank to run their operations. There are also nonprofit depositors too - should they be ignored? If the administration was to completely abandon depositors here it would be an absolute disaster that would affect thousands of hardworking middle class people who haven't done anything wrong. it could also have huge flow on effects to other corners of the market. Protecting them, but leaving investors & executives out to dry is the right path here. I would support something like guaranteeing up to 1 million. Many small and medium businesses have over 250k deposited to pay their employees, run their business etc etc. It is not a fantastical amount of money when we're talking about a business that's paying 10+ people. Also, a tech startup or whatever doesn't inherently deserve to go up in flames. wishing economic calamity on perfectly normal people just because they're not walmart cashiers is just about hatred, envy & class resentment. you see it in the bitterness of the posts in here. sending random tech employees into poverty doesn't actually help poor people, it's just about being vengeful. Lots of those "random tech employees" are rabid libertarians who support the kneecapping of the government for fewer regulations and lower taxes for themselves. They are the people who are screaming with rage at student debt relief even being pondered, and while that is being halted by the courts thanks to Biden sabotaging it by means-testing it and taking at a snail's pace so that a case could be mounted against it, the tech bros are begging for their relief to be given instantly. Which, hey. They got it. Instantly. Good for them. But the hypocrisy isn't lost on anyone.
Vermillion Posted March 15, 2023 Posted March 15, 2023 Amazed this FTX fraudster found a conscience but he’d probably just read the polling…
Bang Up Posted March 15, 2023 Posted March 15, 2023 I wish the Biden admin had the balls to seriously investigate and charge the people who made this happen by making poor decisions. Maybe it'd send a message to the other CEOs of big banks. Not holding my breath, though. It's one of those things where it's damned if you do and damned if you don't. If we let big banks fail, there is a domino effect, so "bailing them out" is often the only thing we can do. I don't feel bad for the rich people who used this bank, but I do feel bad for the trickle-down effect this'll have on regular people.
Recommended Posts