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re: Wapo reporting fed is strongly leaning towards covering all uninsured deposits at SVB

Posted on 3/12/23 at 2:31 pm to
Posted by DreauxB2015
Member since Nov 2015
7923 posts
Posted on 3/12/23 at 2:31 pm to
EVERYBODY a part of the club gets that funny money. Ukraine and green new deal corrupt politicans heres billions . East Palestine sorry folks you get ignored , cancer and inhabitable land for your children. Geez, Im glad the adults are in charge now .
Posted by imjustafatkid
Alabama
Member since Dec 2011
65864 posts
Posted on 3/12/23 at 2:31 pm to
quote:

Actual bailouts to the top 1%.

Okay they can pay off Student Loan Debt.


Good comparison. There's no way to defend this action.
Posted by AkronTiger
2025 NFL Survivor Champion
Member since May 2021
2959 posts
Posted on 3/12/23 at 2:31 pm to
In 2023, this is too crazy not to happen
Posted by bamarep
Member since Nov 2013
52562 posts
Posted on 3/12/23 at 2:32 pm to
quote:

Further proof our whole financial system is a ponzy scheme tilted towards the elite.




/thread
Posted by cwill
Member since Jan 2005
54755 posts
Posted on 3/12/23 at 2:33 pm to
quote:

Bamarep told y'all yesterday they would get a bailout.


This isn’t a bailout of the bank.
Posted by TSLG
Member since Mar 2014
6724 posts
Posted on 3/12/23 at 2:36 pm to
quote:

Then what is the point of insured deposits


You'll find out if you hold $1m in a failed bank.
Posted by Lawyered
The Sip
Member since Oct 2016
38363 posts
Posted on 3/12/23 at 2:37 pm to
quote:

Okay they can pay off Student Loan Debt.


They do everything else except pay for student loans all while telling you they can’t pay for student loans. Shite is infuriating
Posted by bamarep
Member since Nov 2013
52562 posts
Posted on 3/12/23 at 2:40 pm to
Sure it isn't..............
Posted by KiwiHead
Auckland, NZ
Member since Jul 2014
37584 posts
Posted on 3/12/23 at 2:42 pm to
Fukking Bill Ackman....among others
Posted by POTUS2024
Member since Nov 2022
20943 posts
Posted on 3/12/23 at 2:43 pm to
Here's an argument I've seen in support of this bail out:
On the surface money has been lost through decreases in value, so the money isn't there to serve as collateral or liquidate etc, so it can't circulate. This is deflationary.

Bailing out these depositors puts the money back in the system, and just returns the system to its old equilibrium, and thus is not inflationary.

If the accounts are not bailed out it will be catastrophic and "the government has to do something".

Therefore the right thing to do is bail out the accounts to avoid the catastrophe without causing inflation.
Posted by Mo Jeaux
Member since Aug 2008
63786 posts
Posted on 3/12/23 at 2:47 pm to
quote:

Sure it isn't..............



But it isn’t.
Posted by Bass Tiger
Member since Oct 2014
55752 posts
Posted on 3/12/23 at 2:47 pm to
quote:

No bailouts

Its beyond infuriating.




I’ll let you figure out what this ^^^^ represents…..lol
Posted by holdem Tiger
Member since Oct 2007
1257 posts
Posted on 3/12/23 at 2:48 pm to
quote:

Well, he did hve a 50% chance of being right


That's not exactly how probability works...
Posted by SlowFlowPro
With populists, expect populism
Member since Jan 2004
477172 posts
Posted on 3/12/23 at 2:56 pm to
quote:

well yellen came out and said "just to be clear" we arent going to bail them out

She said they weren't going to bail out the banks, I'm pretty sure. As was pointed out in the thread pretty quickly, she didn't say that about the depositors
Posted by RTRinTampa
Central FL
Member since Jan 2013
5532 posts
Posted on 3/12/23 at 2:59 pm to
quote:

On the surface money has been lost through decreases in value, so the money isn't there to serve as collateral or liquidate etc, so it can't circulate. This is deflationary.

Bailing out these depositors puts the money back in the system, and just returns the system to its old equilibrium, and thus is not inflationary.

If the accounts are not bailed out it will be catastrophic and "the government has to do something".

Therefore the right thing to do is bail out the accounts to avoid the catastrophe without causing inflation.


Sounds exactly like why so many people think stock markets only go up. Feds picky winners/losers the whole problem in our system. frick around with your money, you should find out.
Posted by SlowFlowPro
With populists, expect populism
Member since Jan 2004
477172 posts
Posted on 3/12/23 at 2:59 pm to
quote:

But it isn’t.

They will purposefully not understand.

Also I'm sure there can be some accounting where the Fed "buys" some of these assets from FDIC to make the illiquid asset liquid, which isn't really "bailing out" b/c the net spend would be $0.

This isn't an asset issue as much as a liquidity issue.
Posted by BourreTheDog
Member since May 2016
2775 posts
Posted on 3/12/23 at 3:00 pm to
quote:

Bailing out these depositors puts the money back in the system, and just returns the system to its old equilibrium, and thus is not inflationary.


60% of the deposits are ‘foreign’ based out of Singapore and Israel. That ain’t the US Economy
Posted by Mo Jeaux
Member since Aug 2008
63786 posts
Posted on 3/12/23 at 3:00 pm to
It’s clear this board doesn’t understand the distinction. Cwill has 7 downvotes for saying that covering depositors doesn’t mean a bank bailout.

One can argue either way why it’s a good idea to cover the depositors above the FDIC limit, but that’s not bailing out the bank.
Posted by HailToTheChiz
Back in Auburn
Member since Aug 2010
54717 posts
Posted on 3/12/23 at 3:03 pm to
What a crock of shite. Would Congress have to pass a bill or does Fed have complete control?
Posted by SlowFlowPro
With populists, expect populism
Member since Jan 2004
477172 posts
Posted on 3/12/23 at 3:05 pm to
quote:

It’s clear this board doesn’t understand the distinction. Cwill has 7 downvotes for saying that covering depositors doesn’t mean a bank bailout.

One can argue either way why it’s a good idea to cover the depositors above the FDIC limit, but that’s not bailing out the bank.

You're going to keep hearing people bring up bonuses and "1%" and "rich tech people" so it doesn't matter.

I've also seen them claim 33-60% of the accounts are foreign-owned, with no real citation.

There are ways to fix this issue in the short term that don't actually cost any money but would look like a "bailout" to people who want to melt down about it.
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