- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Vivek Ramaswamy: Silicon Valley trying to create panic/cause bank run to save themselves
Posted on 3/12/23 at 7:16 pm
Posted on 3/12/23 at 7:16 pm
quote:
@VivekGRamaswamy
There’s something very ugly happening right now: VCs & startup execs who stand to lose their deposits at SVB are going *out of their way* to push a narrative that there’ll be a bank run on Monday if SVB depositors aren’t bailed out by the government. They’re yelling fire in the proverbial theater, hoping that everyone runs and knocks down a candle on their way out - actually starting a fire that may not otherwise have existed. They’re skipping the fact that SVB’s situation is unique: a staggering *89%* of its deposits were uninsured (way higher than normal banks). And they didn’t hedge interest rate risk which is a cardinal sin given the portfolio they held. Their real “hedge” was to spend $$ to become popular in the right influential circles of their own depositors, pledging $5 billion in 2022 to “sustainable finance and carbon neutral operations to support a healthier planet.” Maybe that hedge will pay off for their depositors if the government bails them out, but that should rightly trigger an “Occupy Silicon Valley” of historic proportions.
Interesting theory and he’s probably right. If you know you aren’t getting bailed out, create so much chaos that the government has to step in and “save” everyone giving VC’s an out.
14
Posted on 3/12/23 at 7:19 pm to msutiger
high risk high reward + socialized risk = no risk high reward
Posted on 3/12/23 at 7:19 pm to msutiger
Govt needs to stay out.
Posted on 3/12/23 at 7:23 pm to msutiger
quote:
And they didn’t hedge interest rate risk which is a cardinal sin given the portfolio they held.
This is what blows my mind. I’d understand if you bought bonds at say 6% and risk seemed low that interest rates go higher. But they bought these long term bonds at low as frick interest rates where rates had nowhere to go but up? And they didn’t hedge that? I’m not even a financial guy and I wouldn’t be that stupid
Be one thing if the bonds matured in a year but these bonds take like 20 years to mature right?
Posted on 3/12/23 at 7:24 pm to kywildcatfanone
Just do the liberal thing and save a few at the cost of the rest.
Posted on 3/12/23 at 7:24 pm to msutiger
He's not wrong. If it were a bank in Alabama or Tennessee do you think the government would be stepping in for depositors with more than $250k?
Posted on 3/12/23 at 7:26 pm to SloaneRanger
After Silicon Valley Bank failure ‘there’s going to be more,’ warns former FDIC Chair William Isaac
LINK
LINK
Posted on 3/12/23 at 7:27 pm to msutiger
(no message)
This post was edited on 3/12/23 at 7:53 pm
Posted on 3/12/23 at 7:30 pm to msutiger
I know this guy knows his shite and tells it like it is, so I'm inclined to believe his theory.
Posted on 3/12/23 at 7:31 pm to msutiger
Posted on 3/12/23 at 7:35 pm to msutiger
People trying to get their own money makes the system collapse. What a great system
Posted on 3/12/23 at 7:38 pm to msutiger
quote:
pledging $5 billion in 2022 to “sustainable finance and carbon neutral operations to support a healthier planet
They deserve to go bankrupt.
Posted on 3/12/23 at 7:43 pm to msutiger
He literally reads the interest rate issue wrong completely.
ANY BANK that bought fed backed products to liquidate as a hedge against capital calls-which is to say EVERY BANK IN AMERICA-is in a bind if their call comes.
The interest rates they locked in on them is lower than current market rates. Meaning that you or I can buy the same products with way better terms and rates than the ones they have to liquidate right now with less attractive terms they locked in with.
Meaning they’re worth less than they needed to be to hedge the risk.
This guy doesn’t understand the situation. He’s racing to feed you the rage blame first to give you an “other,” to assign responsibility to.
But make no mistake…when even normal depositors at small banks get scared, their money will flow out of small banks. It will flow to larger ones. Meaning a run is possible in mid to small size regional banks.
If that happens, it’s a negative for the middle class consumer. Less choice. Less lending decisions at the local level. Less competition in the market.
It’s bad for everyone…and bad for capitalism.
This guy needs to stfu.
ANY BANK that bought fed backed products to liquidate as a hedge against capital calls-which is to say EVERY BANK IN AMERICA-is in a bind if their call comes.
The interest rates they locked in on them is lower than current market rates. Meaning that you or I can buy the same products with way better terms and rates than the ones they have to liquidate right now with less attractive terms they locked in with.
Meaning they’re worth less than they needed to be to hedge the risk.
This guy doesn’t understand the situation. He’s racing to feed you the rage blame first to give you an “other,” to assign responsibility to.
But make no mistake…when even normal depositors at small banks get scared, their money will flow out of small banks. It will flow to larger ones. Meaning a run is possible in mid to small size regional banks.
If that happens, it’s a negative for the middle class consumer. Less choice. Less lending decisions at the local level. Less competition in the market.
It’s bad for everyone…and bad for capitalism.
This guy needs to stfu.
This post was edited on 3/12/23 at 7:44 pm
Posted on 3/12/23 at 7:43 pm to BigPerm30
quote:
quote: pledging $5 billion in 2022 to “sustainable finance and carbon neutral operations to support a healthier planet They deserve to go bankrupt.
Sounds like a get woke go broke lesson should be learned, but I doubt it.
Posted on 3/12/23 at 7:47 pm to msutiger
frick California
frick California and their loser governor with a big rubber dick
frick California and their loser governor with a big rubber dick
Posted on 3/12/23 at 7:52 pm to msutiger
Fed already made a statement, guess they were hoping for a bailout for their lack of risk management. Granted most depositors will be made whole, because there are plenty of assets to sell. But there will be some loses that won't be covered by the taxpayer.
Fed statement
quote:
We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority. All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer.
Fed statement
Posted on 3/12/23 at 7:55 pm to USMCguy121
quote:
high risk high reward + socialized risk = no risk high reward
Yep, its bordering on the ridiculous.
Posted on 3/12/23 at 8:30 pm to UltimaParadox
The government will answer the problem by diluting the dollar value of everyone's assets.
Posted on 3/12/23 at 8:50 pm to msutiger
Lessons need to be learned the hard way sometimes.
Posted on 3/12/23 at 8:58 pm to dewster
quote:
The government’s bank-deposit insurance fund will cover all deposits at the two banks, rather than the standard $250,000. Federal regulators said any losses to the government’s fund would be recovered in a special assessment on banks and that the U.S. taxpayers wouldn’t bear any losses.
They will bear the loses if their bank has to assume a special assessment. frick these assholes.
They are changing the definition of a bail out in front of us and then lying about it. They are going above and beyond for SVB. Main Street is absolutely bailing out Sand Hill Road VC’s now.
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News