Current issues with the market - Any ideas on avoiding the end?

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mindlessobserver said:
How many of these banks are over leveraged on Treasury Bonds to backstop their accounts payable?
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Well how many banks are there?

mindlessobserver said:
Hilariously I think Crypto is going to skate through this.
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They lost their main Bank last week. It will be very hard to get money out of any exchange for the next months because no bank is willing to work with them anymore.
 
Stoneheart said:
Well how many banks are there?
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Fuck
Stoneheart said:
They lost their main Bank last week. It will be very hard to get money out of any exchange for the next months because no bank is willing to work with them anymore.
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Which works in Cryptos favor. Right now the issue is panic. There are a lot of systemic barriers to panic selling in Crypto right now, which ironically may insulate them from what's about to go down.
 
The Fed has just created more moral hazard. Companies will now want to deal only with banks that would be bailed out if they get into trouble. Who wants to deal with a bank that the Fed would just let fail or are all banks now guaranteed a full bailout.
 
mindlessobserver said:
Which works in Cryptos favor.
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God I hate cryptofags so much. "So you can't actually convert [crypto flavor of the month] into anything usable, or spend or transfer it, or withdraw it at all?" "Right! And here's why that's a good thing!..."

It's surprising more banks aren't rolling their own crypto since it's trivially simple for strangers to fuck each other with it. Plenty of money to be had in this "emerging market."
 
moocow said:
God I hate cryptofags so much. "So you can't actually convert [crypto flavor of the month] into anything usable, or spend or transfer it, or withdraw it at all?" "Right! And here's why that's a good thing!..."

It's surprising more banks aren't rolling their own crypto since it's trivially simple for strangers to fuck each other with it. Plenty of money to be had in this "emerging market."
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Oh, its not a good thing under normal circumstances. But in the specific circumstances of a financial panic and bank run, the inability of people to just grab their crypto and run is very useful.
 
mindlessobserver said:
Oh, its not a good thing under normal circumstances. But in the specific circumstances of a financial panic and bank run, the inability of people to just grab their crypto and run is very useful.
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Non-liquidity in a time of panic and financial uncertainty makes the panic and uncertainty worse. Money that's tied up in some bank somewhere, inaccessible with no end in sight, scares the shit out of people. That goes double for crypto; money that's stuck at an exchange somewhere reminds people of the exit scams that have been pulled by countless exchanges in just the past five years.

It's only "useful" to the people running the exchanges. It absolutely fucks everyone else and makes bag holders out of all of them.
 
As a "cryptofag" I feel compelled to tell people that every single crypto, especially so-called "stablecoins" that is not Bitcoin or Monero is almost guaranteed to be a shitcoin. If you're going to put money into crypto, stick to those two and keep them on an offline wallet. Fucking morons that keep buying shitcoins and leaving them in exchanges just make it harder for everyone else.
 
Would anyone be able to explain to me if any more banks are able to fail? Or after the Fed insurance extention, is failure of a bank basically impossible? Biden said management of failed bank will be removed etc, but if a bank with bad investments as of right now is able to borrow liquidity from the new Fed funding, will the bank fail or stay alive? Will no more housecleaning of bad bank investment managing happen if no bank 'fails' from here on out?
 
ATI Escapee said:
Would anyone be able to explain to me if any more banks are able to fail? Or after the Fed insurance extention, is failure of a bank basically impossible? Biden said management of failed bank will be removed etc, but if a bank with bad investments as of right now is able to borrow liquidity from the new Fed funding, will the bank fail or stay alive? Will no more housecleaning of bad bank investment managing happen if no bank 'fails' from here on out?
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Biden and the Fed have basically said there is no moral hazard anymore and money is what they say it is. They say they won't use tax money, but that is not technically true. Apparently there is going to be a levy on all FDIC insured banks to pay for this. The cost of which will be passed on to the account holders in those banks. Also known as the Taxpayers.
 
The new FED lending facility is just incredible. The FED is going to offer banks loans of up to a year in exchange for treasury bonds and other qualifying assets AT PAR. So the FED is going to basically print yet more money and start swallowing up treasury bonds for far more than the bonds are actually work.
For those unfamiliar, this is typically how you get to hyperinflation.

As well, FDIC insurance is as of today effectively unlimited. The banking system as a whole will be responsible for bailing out the entire deposit structure of any insolvent bank.
 
Strix454 said:
The new FED lending facility is just incredible. The FED is going to offer banks loans of up to a year in exchange for treasury bonds and other qualifying assets AT PAR. So the FED is going to basically print yet more money and start swallowing up treasury bonds for far more than the bonds are actually work.
For those unfamiliar, this is typically how you get to hyperinflation.

As well, FDIC insurance is as of today effectively unlimited. The banking system as a whole will be responsible for bailing out the entire deposit structure of any insolvent bank.
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The first part wasn't a surprise. Daddy coming in to save the day and all that.

The FDIC thing is mostly BS. If there is a larger bank run, that spreads and collapses several banks - then the whole FDIC system collapses. There was a reason for the $250k limit... and the government is just going to ignore it and make it worse.

If your a pleb like me, there is no point in getting the money out, though. If your bank is next on the chopping block, youll be covered by the FDIC.... If there is a wide enough spread of bank runs, hyperinflation will occur regardless and you'll be using those dollars to wipe your ass because they won't be worth enough to buy the store-brand TP....
 
All this points to the fact that nothing of value is allowed to thrive under the rule of international speculative finance. It must all be undermined, it must all be turned gay, it must all serve the purposes of deracination and debt slavery.

Crypto bros like to pretend they're saving the world based on some rehashing of libertarian principles. These people are either in disguise or just coping. Money and economics aren't on top; these things serve the will of men, always have and always will.

As long as crypto bros strive to serve no master, they will be led around by the nose by the current sovereign, who can outflank them at every turn. It's by deciding to serve a different master, and a genuinely distinct world concept, that the necessary power can be consolidated to depose the existing order and change things for the better.
 
Every time I read the term "Crypto bros" without the poster being ironic I shove another seething nerd in a locker.
 
The Punished Mitch said:
Americans are the most tragic people of all time. So thoroughly zogged and golemized that they can be trusted to remain docile even when handed the tools to end their enslavement.
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No. Only s certain generation that believes in Pronouns and don't know whether to side down or stand up when taking a piss. Now which that Generation of fucking failures I fully agree with your comment.
Strix454 said:
The new FED lending facility is just incredible. The FED is going to offer banks loans of up to a year in exchange for treasury bonds and other qualifying assets AT PAR. So the FED is going to basically print yet more money and start swallowing up treasury bonds for far more than the bonds are actually work.
For those unfamiliar, this is typically how you get to hyperinflation.

As well, FDIC insurance is as of today effectively unlimited. The banking system as a whole will be responsible for bailing out the entire deposit structure of any insolvent bank.
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And that is one of my fears. You hit the problem right on the head.
 
Guess we'll see how this plays out for the rest of the week. I really get the feeling we have maybe a few months at best before everything blows up.
 
Local Fed said:
Every time I read the term "Crypto bros" without the poster being ironic I shove another seething nerd in a locker.
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Maybe you should try being the boss of the exchange.
mindlessobserver said:
After what I saw today, you cannot convince me money is not fake.
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The reason the USD is still king is because everyone else is also fiat and worse. The horrifying question is not which fiat replaces the USD. It's what can.
If there was no reserve fiat, modern day technology would be forced to invent one.

Chinese market is down again. There's rumors about another lockdown this time due to Influenza A. There's a shit ton of conspiracy in the mainland of it being a COVID variant that Praxolvid doesn't work for. Sometimes I wonder if the USA put Xi in and the Chinese put Biden in to spite each other since they're all such ineffectual leaders.
 
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