I love how all these small government/libertarian business people who have been funding the GOP for decades all of the sudden are for "socialism"

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So there are all of these libertarians etc calling on the Fed/FDIC to basically take over and secure the bank.

Keep in mind, this i only happening because Trump totally gutted regulations that would have prevented this from happening. So we are going to get a massive bailout for Silicon Valley Bank and yet people complain about a few thousand dollars in bailouts for student loans.

For one, the FDIC already took over the bank around 24 hours ago

Two, this is not caused by Trump gutting regulations. The cause was interest rate risk- recall people deposit money at banks and they turn around and lend money, in this case in the form of MBS and treasuries. The fed kept interest rates too low for too long and then they hiked rates precipitously, which caused huge losses for the bank on those securities that were purchased when interest rates were much lower

Disagree. Trump gutted Dodd-Frank that would have protected against this.

NP. Why do you think that’s true? Lots of us knew that Dodd-Frank was quarter-assed. While it could have been worse, it was clearly an attempt to put Humpty-Dumpty back together.

I will say that those putting all their faith into Dodd-Frank are not half as ridiculous as the govt spending/inflation obsessed crew. At the very least, those folks need to figure out ZIRP first.

Anonymous wrote:The discussion in finance circles and mainstream circles as to the cause of this bank collapse are so very different.

And there’s the typical fin (bro?) convo and then there’s the smart one!

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So there are all of these libertarians etc calling on the Fed/FDIC to basically take over and secure the bank.

Keep in mind, this i only happening because Trump totally gutted regulations that would have prevented this from happening. So we are going to get a massive bailout for Silicon Valley Bank and yet people complain about a few thousand dollars in bailouts for student loans.

For one, the FDIC already took over the bank around 24 hours ago

Two, this is not caused by Trump gutting regulations. The cause was interest rate risk- recall people deposit money at banks and they turn around and lend money, in this case in the form of MBS and treasuries. The fed kept interest rates too low for too long and then they hiked rates precipitously, which caused huge losses for the bank on those securities that were purchased when interest rates were much lower

Disagree. Trump gutted Dodd-Frank that would have protected against this.

False. The regulations would not have helped in this case. The adverse interest rate risk scenario in the stress tests were not severe enough and SVB would easily have met the liquidity requirement.

HEy Republicans, you want to get rid of all those pesky regulations. How's that working for you?

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Anonymous wrote:

Anonymous wrote:This economy is so robust that banks cannot keep up. They are roadkill !!!


Inflation reduction act and Biden’s investment in all aspects of infrastructure will power us through this century.

Ignore fat cat banker issues.

I hope this is sarcasm.

Not sarcastic at all. Biden is building up from the bottom. The top will take care of itself. These rich vc’s should buy the bank.

It is Biden's spending that got us where we are.

I’ve seen a bunch of dumb takes on this, but this wins the award for dumbest so far.

DP. But PP is correct. Though I’d edit it to say trump and Biden spending is why we’re here.

Print trillions of dollars, causes inflation. So the fed had to pivot and raise interest rates to lower rates. SVB didn’t foresee interest rates hikes and it was too little, too late.

I bet you had no issue with the printing of money and lack of funding tax cuts under the Trump Administration.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This economy is so robust that banks cannot keep up. They are roadkill !!!


Inflation reduction act and Biden’s investment in all aspects of infrastructure will power us through this century.

Ignore fat cat banker issues.

I hope this is sarcasm.

Not sarcastic at all. Biden is building up from the bottom. The top will take care of itself. These rich vc’s should buy the bank.

It is Biden's spending that got us where we are.

That is quite the "argument" - how is it all of the other banks are fine. If David Sacks was accurate, ALL of the banks would be having this problem. They aren't, just this one.

Anonymous wrote:

Anonymous wrote:So there are all of these libertarians etc calling on the Fed/FDIC to basically take over and secure the bank.

Keep in mind, this i only happening because Trump totally gutted regulations that would have prevented this from happening. So we are going to get a massive bailout for Silicon Valley Bank and yet people complain about a few thousand dollars in bailouts for student loans.

For one, the FDIC already took over the bank around 24 hours ago

Two, this is not caused by Trump gutting regulations. The cause was interest rate risk- recall people deposit money at banks and they turn around and lend money, in this case in the form of MBS and treasuries. The fed kept interest rates too low for too long and then they hiked rates precipitously, which caused huge losses for the bank on those securities that were purchased when interest rates were much lower

Disagree. Trump gutted Dodd-Frank that would have protected against this.

Anonymous wrote:The discussion in finance circles and mainstream circles as to the cause of this bank collapse are so very different.

Agreed. So many idiots on Twitter trying to make this about ESG, or the folly of DEI, or that they had an all women investment committee.

This wasn’t a credit risk event with bad loans and huge write offs. This was a whisper campaign-driven bank run that looks more and more like it started with Peter Thiel and horrific liquidity risk management practices by the bank.

The only nexus this has to “Silicon Valley” is that it’s an incestuous community that spooked itself into collapsing their very own lender through a bunch of DM whispers. So pathetic.

Happy to see Thiel being ripped to shreds in Twitter

The discussion in finance circles and mainstream circles as to the cause of this bank collapse are so very different.

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Anonymous wrote:

Anonymous wrote:I am a lineman- who the hell bails out my truck when my transmission goes.

Stop bailing out the rich. You do it every damn year.

The utility company you work for?

None of your damn business. I run my own rig.

And I bet you like Trump 'cause he's a straight-shootin', no bull-shit, stand-up guy. His word is his bond and you can bank on it!

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I am a lineman- who the hell bails out my truck when my transmission goes.

Stop bailing out the rich. You do it every damn year.

The utility company you work for?

None of your damn business. I run my own rig.

You asked the question. I presume you keep your money that you get paid for “running your own rig” in a bank, and expect to get that money back if the bankrupt. That’s what is happening here.

I don’t keep my money in the casino and I don’t keep it in any Silicon Valley club.

Don’t BS working people. Smell right off you.

Who knew that DC Urban Moms was such a hub for hard scrabble “linemen” to spend their Saturday mornings. Must be tough to type while up there stringing lines.

You think you’re the first person to talk down to me? Go to hell.

PP, you are a lineman for the county

And you drive the main road
Searchin' in the sun for another overload
I hear you singing in the wire

I can hear you through the snowflake whine
And the PP lineman
Is still on the line

I know PP needs a small vacation
But it don't look like rain
And if it snows that stretch down south
Won't ever stand the strain

And PP, I need you more than want you
And PP, I want you for all time
And the PP lineman
Is still on the line.

MAGA!