Don't Worry, Be Happy!

[fj1200]

It would not surprise me one bit to find out the FDIC is as underfunded as social security, and/or the supply rats (Congress) has been ratfucking the seabag.

To clarify the last for those not in the know, when you go out in the field/ashore, you stow your gear in your seabag and its warehoused at supply. When you return and find a hole in your seabag and items missing, it's been ratfucked, usually by those assigned to safeguard it. Their reasoning? Must've been rats

Anyway, I haven't much faith in the US government responsibly handling the people's money, and not without obvious and innumerable reasons.

In order of confidence for those governmental involved in this affair... 1. Federal Reserve. 2. FDIC. And a distant 3. Treasury. and an even distanter 4. Anything the administration or anyone in Congress yammers on about.

I'm not worried about all of this.

And to BD. The banking system's stability > biden trying to walk.

[Gunny]

In order of confidence for those governmental involved in this affair... 1. Federal Reserve. 2. FDIC. And a distant 3. Treasury. and an even distanter 4. Anything the administration or anyone in Congress yammers on about.

I'm not worried about all of this.

And to BD. The banking system's stability > biden trying to walk.

You don't ever seem to be worried about much of anything. Pass the bong, bogart

The worry for me is too many avoidable failures at all levels that in the end add up. Government insurance money doesn't appear out of thin air. It generally appears out of our pockets. Attached to some innocuous Bill in fine print completely hidden by the larger albatross the Bill represents as a whole. As reported to us by the MSM

[Gunny]

Another take. My money's on the Biden admin caving to PR and bailing out the investors, and the Republican't's caving to PR and going along with it.

https://www.foxbusiness.com/markets/...y-summers-says

[fj1200]

You don't ever seem to be worried about much of anything. Pass the bong, bogart

The worry for me is too many avoidable failures at all levels that in the end add up. Government insurance money doesn't appear out of thin air. It generally appears out of our pockets. Attached to some innocuous Bill in fine print completely hidden by the larger albatross the Bill represents as a whole. As reported to us by the MSM

You do have quite the point there. But that is because so much of what is whined about nowadays is completely overblown. There are a million youtube channels, bloggers, morons on 24 hour "news" stations, etc. who based on having zero actual knowledge are getting clicks and views by people who want to and probably will believe whatever drivel that they find. Sadly, there are countless topics that I could repeat that exact sentence and completely stand behind the accuracy of it.

But FDIC isn't really government money because they collect fees from the banks that they oversee. If you're going to have government involved then that is not the worst way to do it. The "government money" comes in when we have major crises; '87 S&L bailout, 2008 TARP, etc. which I would argue are because government has screwed something else up. Which leads me to another axiom that comes in handy. "When socialism fails, blame capitalism, and demand more socialism." That's when I worry. Pass the bong bro.

[Kathianne]

If it were one bank with just this weird anomaly of so many rich investors with well over $250k limit on FDIC the discussion of extended payouts might MIGHT be discussion worthy. It's not one bank and it also is a fact that arguing against such an exception in any circumstances is foolhardy.

This morning, after Credit Suisse self-reporting, the financials are taking serious hits thus far.

https://www.investors.com/market-tre...220&yptr=yahoo

https://www.wsaz.com/2023/03/15/us-s...-dow-down-500/

https://www.wsj.com/articles/global-...of2&yptr=yahoo

[Kathianne]

Relief?

https://babylonbee.com/news/leadersh...op-collapsing/

WASHINGTON, D.C. — Many are praising President Biden for his swift and decisive leadership this morning. In a set of forceful and clear remarks to the country's financial system, he called on all banks to stop collapsing immediately."Hey there, banks! Yeah, you! Stop it! I mean it! Not a joke!" said the President to a smiley face written on his thumb in Sharpie he mistook for one of his nieces. "You've collapsed long enough! I say, no more! That's enough, banks! Cut it out right now, or so help me I'll count to ten!"
The President then attempted to count to ten but got lost somewhere around the number four when he became distracted by the smiling face on his thumb and began sniffing it. "Oohh honey I like your shampoo! What was I saying again?"
Mainstream media, politicians, and Wall Street bankers all joined the call for banks to stop collapsing and vowed to never hold anyone accountable for any of this if it's the last thing they do.
At publishing time, the banks had still not heeded the President's command.

[Kathianne]

@fj1200 Well it looks like there's some pretty smart folks that are finding themselves more and more concerned:

https://www.wsj.com/articles/another...hare_permalink

[Kathianne]

First I've seen regarding QE:

https://www.wsj.com/articles/desanti...hare_permalink

...

The failure of a few banks has inspired the Fed to bail out the undeserving and also to crank up the money printing once again at a breakneck pace. “The Fed Just Did Massive QE” is the headline on a note to clients today from SMBC economist Joe LaVorgna, who writes:


Last night the Fed published its H.4.1 release. This is the report that provides a weekly snapshot of the Fed’s balance sheet for the week ending Wednesday. So, we have what the Fed balance sheet looks like as of March 15th and boy was it a doozy. The Fed effectively just did $318 billion of quantitative easing (QE). Yes, you read it correctly. The Fed effectively added $318 billion in reserves to the financial system. It is no wonder that risk assets responded as they did. Once again, the system is awash in liquidity.
Will the government-created emergency ever end?

[Gunny]

@fj1200 Well it looks like there's some pretty smart folks that are finding themselves more and more concerned:

https://www.wsj.com/articles/another...hare_permalink

Good article. IMO, the general American public wants to have its cake and eat it too. Guaranteed cradle to grave nurse-maiding, and are willing to sell their souls to the government to get it. I think it doesn't even go as far as risk/gain, or how the system works. They don't care. They care only that the Nanny State bail out any and all losses. An unrealistic expectation nurtured by the Nanny State itself.

Sooner or later the rubber band breaks.

[Gunny]

First I've seen regarding QE:

https://www.wsj.com/articles/desanti...hare_permalink

Will the government-created emergency ever end?

Not if the current administration has anything to do with it. Minus its created "emergencies", people might notice this admin/government has done nothing in the interest of the US and everything in strengthening its own hold on power.

[Black Diamond]

Any losses we incur as investors will be the fault of climate change. Yellen has already covered everyone's asses from future blame.

[Gunny]

The attention whore pimping more government regulation. But we're all about ethics in Congress these days, right?

https://thehill.com/homenews/senate/...-svb-collapse/

[Black Diamond]

The attention whore pimping more government regulation. But we're all about ethics in Congress these days, right?

https://thehill.com/homenews/senate/...-svb-collapse/

Don't pick on native Americans.

Oh wait.

[Black Diamond]

Any losses we incur as investors will be the fault of climate change. Yellen has already covered everyone's asses from future blame.

Also you can count on the administration and MSM promoting this excuse/reason.

[fj1200]

@fj1200 Well it looks like there's some pretty smart folks that are finding themselves more and more concerned:

Nice find. Meltzer was smart. Hoenig looks to be pretty smart and we need plenty more of guys like him. I'll have to hold this up to my benchmark:

Which leads me to another axiom that comes in handy. "When socialism fails, blame capitalism, and demand more socialism." That's when I worry. Pass the bong bro.

This is definitely concerning but I'm still fairly positive that contagion doesn't break out. I think the initial efforts to blame capitalism have been blunted by the reality on the ground but how long that can hold out against the "blame capitalism" narrative is the ultimate question. I'm going to lay this at the feet of the next election and if the Republicans can keep from muffing the next round of elections.

First I've seen regarding QE:

I'm not sure this the QE of yesteryear because if all there doing is throwing some cash at the balance sheet then it doesn't seem that it would flow into the inflation numbers. I could easily be wrong.