They should charge a higher fee for sophisticated investors. They're the ones that caused this and they're who we're placating. Credit flight risk is much more impactful and common with them. |
No you are not. You are just making less money. It's a really freaking important distinction. |
if you are not earning 4-5% on your savings you are not keeping up with inflation so you are losing money in real terms. |
https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312a.htm "banking system to safeguard deposits and ensure the ongoing provision of money and credit to the economy. The Federal Reserve is prepared to address any liquidity pressures that may arise. The additional funding will be made available through the creation of a new Bank Term Funding Program (BTFP), offering loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging U.S. Treasuries, agency debt and mortgage-backed securities, and other qualifying assets as collateral. " And this making good for depositors and providing money and credit resulted in positives for the crypto industry. Euphoric is a word used by Luna. https://www.cnbc.com/2023/03/13/bitcoin-btc-crypto-prices-surge-as-svb-depositors-protected.html Signature Bank-heavy in crypto-gets the same deal. |
SVB UK has been acquired by HSBC, reportedly for one pound. |
Good luck, HSBC. |
No, they can let sophisticated investors decide for themselves if they want an insured account for a higher cost. And they shouldn’t make them whole if something happens. |
2% is more than holding cash for a bank. It's not meant to be actively traded. It's meant to be secure. We don't want banks adding risk in a chase for yield as part of their capitalized reserves. |
Better stated than "you are just making less money" is: You are just losing less money. |
Dude, a lower rate of return is ALWAYS preferable to losing your principal/corpus. Get real. |
No. Not at all. You're trying to make a consumer focused analogy to purchasing power that doesn't apply while also conflating realtive and absolute gains. |
They will have short memories but hopefully regulators and lawmakers will not. Beyond the financial aspect, tech and social media companies absolutely need to be regulated. They are nicotine for the latest generations. And I want them out of schools too. |
Honest question -- should we care about that? |
This comment completely misses the point on how risky ann investment in long term treasuries can be in light of SVB collapse. |