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'Contagion' It's what the media is calling the possible coming collapse of Banks

Posted on 3/11/23 at 11:16 am
Posted by Jjdoc
Cali
Member since Mar 2016
53435 posts
Posted on 3/11/23 at 11:16 am
Just run a search for that word and look at the articles on banks:


quote:

The Washington Post
Silicon Valley Bank failure raises fear of
broader financial contagion


NY Post is using the term. Yahoo.. etc.


They fear a massive wave it looks like.
Posted by LuckyTiger
Someone's Alter
Member since Dec 2008
45152 posts
Posted on 3/11/23 at 11:17 am to
Get the bailouts ready!
Posted by billjamin
Houston
Member since Jun 2019
12363 posts
Posted on 3/11/23 at 11:19 am to
Only fearporn wishcasters and people who lack understanding of why SVB failed are talking about this.
Posted by Tiger Attorney
New Orleans
Member since Oct 2007
19652 posts
Posted on 3/11/23 at 11:20 am to
Can you explain it to me like I am 5?
Posted by billjamin
Houston
Member since Jun 2019
12363 posts
Posted on 3/11/23 at 11:21 am to
quote:

Can you explain it to me like I am 5?

They’re uniquely exposed because of their model (PE and VC) then made a colossally bad decision to go big on treasury bonds.
This post was edited on 3/11/23 at 11:22 am
Posted by TomShelby
Member since Mar 2023
789 posts
Posted on 3/11/23 at 11:22 am to
Inverted yield curve and being a start up crytpo woke lender is whatvreally did them in
Posted by the_truman_shitshow
Member since Aug 2021
2755 posts
Posted on 3/11/23 at 11:25 am to
Read up on Jim Rickard’s “ice nine” metaphor borrowed from the novel, Cat’s Cradle by Kurt Vonnegut.

Then you will understand the magnitude of what they are alluding to.
This post was edited on 3/11/23 at 11:25 am
Posted by TrueTiger
Chicken's most valuable
Member since Sep 2004
67617 posts
Posted on 3/11/23 at 11:25 am to

If the media would just shut up the odds of what they are speculating about will be much lower.

Idiots.
Posted by the_truman_shitshow
Member since Aug 2021
2755 posts
Posted on 3/11/23 at 11:26 am to
It’s intentional.

Predictive programming in order to induce a run on the banks.

The Fed can’t introduce their drastic and draconian solutions without the backdrop of a global financial crisis.
CBDCs…
This post was edited on 3/11/23 at 11:27 am
Posted by BobBoucher
Member since Jan 2008
16701 posts
Posted on 3/11/23 at 11:28 am to
This is caused by the fed rate hikes. All small banks are at risk.

Rate hikes are caused by inflation.

Inflation is caused by Bidens endless handouts.

Biden is responsible for SVB and any other bank collapses.
This post was edited on 3/11/23 at 11:29 am
Posted by TrueTiger
Chicken's most valuable
Member since Sep 2004
67617 posts
Posted on 3/11/23 at 11:29 am to

If so, the progressive lefty media hasn't thought this out well.

The end result won't go well for them.
Posted by bbvdd
Memphis, TN
Member since Jun 2009
24932 posts
Posted on 3/11/23 at 11:30 am to
They went heavy in Agency and treasury when yields were very low.

I’d love to know the duration of the portfolio

But the FOMC helped kill this bank. The FOMC was way too late moving and leaving all the cash in the system.
Posted by BamaScoop
Panama City Beach, Florida
Member since May 2007
53799 posts
Posted on 3/11/23 at 11:33 am to
They are in the process of bankrupting the American people!
Posted by the_truman_shitshow
Member since Aug 2021
2755 posts
Posted on 3/11/23 at 11:33 am to
Bingo
Posted by Toomer Deplorable
Team Bitter Clinger
Member since May 2020
17587 posts
Posted on 3/11/23 at 11:39 am to

Posted by Meauxjeaux
98836 posts including my alters
Member since Jun 2005
39845 posts
Posted on 3/11/23 at 11:40 am to
There’s not a bank in the world that can survive a run on cash. Not one.

What caused it? Stupid people acting stupidly. Both bank employees and their customers.
Posted by SingleMalt1973
Member since Feb 2022
11836 posts
Posted on 3/11/23 at 11:41 am to
The 5th grade explanation is basically their loans massively out weighed their deposit accounts. Despite advances in technology and wokeness the laws of economics that have been around for centuries trump all.
Posted by Toomer Deplorable
Team Bitter Clinger
Member since May 2020
17587 posts
Posted on 3/11/23 at 11:43 am to
quote:

It’s intentional.


The party is coming to an end sooner rather than later. At some point gravity is going to take over and it won’t be a soft landing for any of us.

By any objective measure, the current trajectory is simply unsustainable. From the Roman Empire to the Weimar Republic, every empire and nation in human history that has attempted to coin or print itself into prosperity has been relegated to the ash-heap of history.

Posted by Reubaltaich
A nation under duress
Member since Jun 2006
4962 posts
Posted on 3/11/23 at 12:01 pm to
No link but I am reading on other sites that Wells Fargo and Republic Bank could be next

IDK so take that for what its worth.

I am no expert on this stuff but I will say this though. 20 years of nearly zero percent interest rates and the Fed pumping fake $$$ into the economy for years and years.

This is starting to feel like 2008-2009 again.
Posted by UncleFestersLegs
Member since Nov 2010
10803 posts
Posted on 3/11/23 at 12:21 pm to
quote:

What caused it?
quote:

Prominent venture capitalists advised their tech startups to withdraw money from Silicon Valley Bank, while mega institutions such as JP Morgan Chase & Co sought to convince some SVB customers to move their funds Thursday by touting the safety of their assets.
quote:

Stupid people acting stupidly. Both bank employees and their customers.
no it was orchestrated. They Lehmaned some folks
This post was edited on 3/11/23 at 12:22 pm
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