re: Bill Ackman: Government has 24 hours to fix Silicon Valley Bank debacle

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Sure they will survive, but it’s going to cause issues.

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How is the failure of Roku going to impact any consumers to an extent greater than being out of $50 for a player? There are plenty of other providers. So allow them to fail or let them survive on their own merit not from a bailout.

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Startup Extinction Event -

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A bunch of green energy/diversity startups going under would be a net positive for our nation and the world at large.

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Regional Banking Crisis

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Nonsense.

The Community Reinvestment Act (CRA) was a Clinton Era policy that was one of the first modern Social Justice legislation attempts that created the Mortgage Meltdown and the financial crisis of 2008.

There were many banks created and poorly run before 2008 since the implementation of CRA during the Clinton Administration. In order for them to grow and try to continue to hold their ground against bigger banks, they had to make compromises due to CRA.

In many real ways, the failures since 2008 due to stress tests and other issues are a long, drawn out unwinding of risk created in smaller institutions back between the 90’s and ‘08. Risk mandated on them by poorly thought out legislation which created huge risks with few ways for smaller banks to manage it without creating unique, collateralized debt obligations (CDO), Mortgage Backed Securities (MBS) and Credit Default Swaps (CDS).

They couldn’t grow unless they made risky loans to promote home ownership in minority communities and demographics. Which CRA required them to do in order to continue to grow. They couldn’t discriminate against anyone so they had to relax lending standards in order to increase home ownership numbers in the demographics the legislation was pointed at across the board.

In order to thread that needle, standards were lowered across the board. Money got easy, liar loans became standard practice and CDO/MBS/CDS helped banks face the heat from the risk…until they couldn’t put the risk off anymore.

Same situation here with the plethora of banks failing since 2008.

CRA turned capitalism against itself using politically implemented, ideologically driven market interference to try to engineer an outcome that multiple administrations (dating back to the Carter one) proved the market was not producing and also not producing due to racism or bias. Which many liberals suspected but things like HMDA proved for decades wasn’t happening.

The seeds of our current issues were in some ways planted during the Carter administration and were watered and tended during the Clinton and Obama years…coming home to roost only now.

It’s not just the VC’s. It’s the start ups.

But again you’re being obtuse here. The more folks-whether VC’s, startups or others-see instability, the more their money flows to STRICTLY to the biggest banks.

This creates instability and fewer choices in the market if unchecked. Which is a negative for Main Street as a whole. Small businesses, local folks, non coastal elite, big bank types.

You’ve got to protect mid sized banks because if we don’t have choices and market competition in the financial sector, it’s a bad thing for capitalism.

I’m not worried about it. I know Kamala is handling it.

You can not see the forest for all the pesky trees


What triggered 2008 was fraud and probably had political allies on both sides

Get out of the blame game dude and get the reality check

Sup prime was the smoke screen, the bigger issue was the leverage game and derivatives. I suggest you watch "The Big Short" and pay attention to the scene with the female actress describing the leverage of derivatives and comparing it do a game of odds in Vegas. It was spelled out in a way to make it easier to understand.

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You are replying to the following post:
Posted by Message
Cheese

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Acting on any level that the mortgage crisis didn’t play a massive role in ‘08 tells me you don’t know what you’re talking about. Regardless of what they did about the issue, you’ve either misspoken here or are completely uninformed.

That you saw my post where I mention CDO’s, MBS’s and CDS’s and refer to a film to educate me when I literally shared with you the information behind the products created to mitigate the risk of the legislation which created subprime mortgages is an ignorance level that’s off the chart.

Hint: I’ve originated, underwritten and closed more mortgages than you have by a factor of likely over 100. I spent years in the industry and held licensures and registrations to do business within said industry in multiple states.

…and on the other side of the argument, we see you recommending people watch a movie to learn more.

The people that post here are often wrong…but they are never in doubt.

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Hint: I’ve originated, underwritten and closed more mortgages than you have by a factor of likely over 100.

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These kinds of statements never go south

shite like this makes me become even more serious about loading up on gold