Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 03-18-2023, 03:55 PM
 
19,469 posts, read 17,695,925 times
Reputation: 17010

Advertisements

Quote:
Originally Posted by Lycanmaster View Post
There's one prominent figure (Ron Paul) who believes the FED should be ended altogether...
Some people really believe the Earth is flat as well.
Reply With Quote Quick reply to this message

 
Old 03-18-2023, 03:57 PM
 
19,469 posts, read 17,695,925 times
Reputation: 17010
Quote:
Originally Posted by Lycanmaster View Post
Just another indication that terms like conservative/liberal or even capitalist/socialist mean absolutely nothing anymore lol.
I'm proof that one can be a conservative and not a luddite. You are in the narrow minority here not me.
Reply With Quote Quick reply to this message
 
Old 03-18-2023, 04:01 PM
 
19,469 posts, read 17,695,925 times
Reputation: 17010
Default No details....just read UBS will take over Credit Suisse.

UBS, the largest Swiss bank, will take over Credit Suisse, the second largest Swiss bank. This is exceptionally good news.
Reply With Quote Quick reply to this message
 
Old 03-18-2023, 04:50 PM
 
6,555 posts, read 4,163,904 times
Reputation: 6984
This is getting even more absurd. The next step is to nationalize the banking system.

https://www.cnbc.com/2023/03/18/mids...two-years.html
Reply With Quote Quick reply to this message
 
Old 03-18-2023, 04:53 PM
 
105,671 posts, read 107,628,943 times
Reputation: 79308
the andrea doria rescues the titanic ha ha
Reply With Quote Quick reply to this message
 
Old 03-18-2023, 05:46 PM
 
7,257 posts, read 3,479,848 times
Reputation: 13828
Quote:
Originally Posted by Lizap View Post
The FDIC insures that depositors will get back a maximum of $250k. They may well receive more; this would be decided as bank assets are sold off. What the government should NOT do is step in and guarantee that all depositors will be made whole. This is terrible precedent. Is the government going to step in and save every business from failing?
There were 563 bank failures from 2001 through 2023 (I'm looking at the FDIC website).

It appears that in each case, the assets of the bank seized by the FDIC exceeds its deposits. I looked at all 563 cases. Unless I made a mistake, each and every one of the 563 banks put into receivership by the FDIC had more than enough assets to cover the deposits.

There are two general cases of bank failure:

1) The FDIC puts the bank under receivership ("seizes the bank") and the FDIC enacts a sale to a healthier, larger bank. When this happens, it is business as usual for the depositors. Everyone gets all their money pretty much right away.

2) The FDIC puts the bank under receivership ("seizes the bank") and doesn't find anyone to buy the bank. When this happens, everyone is issued a check for their money up to the $250K limit (it might take a week or more to issue the checks by US mail). If you have more money in the bank than $250K, you get a "Receiver's Certificate" for the balance above the $250K limit. Then, over the coming months, as assets of the bank are sold off, everyone gets the balance of their money.

Note that in both #1 and #2 everyone is made whole - eventually. It is just a matter of time.

The problem is businesses have to pay their employees every pay period. They have to pay their creditors for everything from their electric bill to bills for new parts & equipment & raw materials. Etc. Their employees have their own bills to pay. Many companies close their doors but not because they are losing money. Local governments expecting their property tax revenue don't receive payments. Etc.

So what made SVB different?

1. The FDIC decided not to sell off SVB to a suiter. The Chairman of the FDIC is a partisan far-left ideologue who hates big banks and did not want to see a potential buyer get even larger as a result.

2. SVB's executives are powerful donors to Democrats.

3. SVB's clientele - Venture Capitalists - are powerful source of campaign contributions to Democrats.

4 Silicon Valley is source of campaign contributions to Democrats.

5. High Tech Company employees are power sources of campaign contributions to Democrats.

6. California has 55 Electoral Votes.

7. We are now in the election cycle.










Reply With Quote Quick reply to this message
 
Old 03-18-2023, 07:40 PM
 
Location: Warwick, RI
5,420 posts, read 6,178,831 times
Reputation: 9303
Warren Buffett in contact with Biden team on banking crisis…

https://www.bloomberg.com/news/artic...uverify%20wall

If anyone can pull off a real J.P. Morgan moment to calm things down, it’s Buffett.
Reply With Quote Quick reply to this message
 
Old 03-18-2023, 08:09 PM
 
Location: Wylie, Texas
3,812 posts, read 4,381,118 times
Reputation: 6102
I would agree with the majority of posters here in that the rescue HAD to be made to head off a domino effect of collapsing banks taking us back to Armageddon 2008. That being said, if it's agreed that the banking system is too important to allow to fail, then I dont see any other choice but to nationalize it. We cant keep "privatizing the profits but socializing the losses" of the banks. If they are that critical, then they either should be nationalized or the regulation ramped up considerably (If I recall, increased regulation and oversight was exactly what was done after 2008, only to be rolled back by Trump).
Reply With Quote Quick reply to this message
 
Old 03-18-2023, 08:18 PM
 
7,257 posts, read 3,479,848 times
Reputation: 13828
Quote:
Originally Posted by treasurekidd View Post
Warren Buffett in contact with Biden team on banking crisis…

https://www.bloomberg.com/news/artic...uverify%20wall

If anyone can pull off a real J.P. Morgan moment to calm things down, it’s Buffett.
That Bloomberg article was as close to content free as you can get.
Reply With Quote Quick reply to this message
 
Old 03-18-2023, 08:21 PM
 
1,962 posts, read 1,259,939 times
Reputation: 4985
Quote:
Originally Posted by biafra4life View Post
I would agree with the majority of posters here in that the rescue HAD to be made to head off a domino effect of collapsing banks taking us back to Armageddon 2008. That being said, if it's agreed that the banking system is too important to allow to fail, then I dont see any other choice but to nationalize it. We cant keep "privatizing the profits but socializing the losses" of the banks. If they are that critical, then they either should be nationalized or the regulation ramped up considerably (If I recall, increased regulation and oversight was exactly what was done after 2008, only to be rolled back by Trump).
What losses? I mean specifically, what losses in the banking system are you referring to?
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics

All times are GMT -6.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top