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Off-Topic Stock Market & Crypto Discussion

Remain Calm All Is Well GIF
 
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BTW, stepping back and looking at the macro picture, rule one of investing is DONT FIGHT THE FED. Those that chose to ignore that basic rule got hurt, and that includes the risk management idiots at a lot of banks, the FDIC, OCC, etc.
 
Its a joke for Brandon to say that we need more regulation and that the taxpayers wont be on the hook. We need better ENFORCEMENT and by buying bonds that have large losses at par you are putting the taxpayer on the hook. There also has to be risk to making stupid decisions, or else we are a hamster going around the wheel.

So for example, many banks have offshore subsidiaries that they park clients cash in. Why? Because its uninsured so the bank saves the FDIC fee and is able to pay the depositor more. Why should that depositor be made whole? An individual or corporation saw that SVM or Signature et al was paying more for deposits, so they got greedy and for a few basis points more, they went above the insured limits. Why should that depositor be made whole?
 
mr.h said:
Nothing To See Here GIF by Giphy QA

Everything that has gone wrong in 21,22 and 23 is the fault of the Fed. Raising rates at the fastest pace, ever, was an obvious mistake.
@SpikeUM..Biden and my bubby Yellen have saved our tuchases again.
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Sometimes I read your posts and get the impression that you have an above average grasp of macroeconomics.

This isn't one of them.
 
mr.h said:
100%
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You are giving our government a MASSIVE pass. The FED added $4T while the fiscal response was far and away responsible for the massive inflation of the money supply. Even in 2022, the US Government continued to spend adding to their debt ignoring all of the MMT BS they have been preaching for years. I'm not going to throw a ton of the blame on the FED for SVB and Signature when the US Government should have regulatory oversight. I can go on and on!

The FED's biggest mistakes: 1) not acting sooner with rate hikes. 2) talking about slowing hikes then talking about bigger, higher, longer just weeks later. 3) not waiting 12-18 months from the start of hikes to starting QT OR doing QT without hiking as high.

Overall, the FED is doing everything it should to make sure inflation doesn't run too hot. The US Government is doing a ton wrong in keeping inflation hot.
 
mr.h said:
100%
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There is plenty of blame to pass around, but the core issue is the Federal government gave away way too much money, continues to run YUGE deficits, and still wont stop spending. That is all highly inflationary, and its the Feds job to curb inflation.
 
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Bezinga - today
The Federal Reserve and the Biden Administration on Sunday took decisive action to safeguard the country's banking system by providing additional funding to eligible depository institutions to help them meet the needs of all their depositors, amid the shutter of multiple regional banks.

Depositors are safe — the shareholders are not.
President Joe Biden addressed the nation Monday saying, “Investors in the banks will not be protected... they knowingly took a risk, and when the risk doesn’t pay off, investors lose their money — that’s how capitalism works,” Biden said.
 
JD08 said:
Sometimes I read your posts and get the impression that you have an above average grasp of macroeconomics.

This isn't one of them.
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We are creating jobs, GDP is strong, productivity is up…the excessively high interest rates came from the Fed who was working for the previous administration. They raised rates to fast, which of cause created debt, foreclosures, and defaults.
Spending on bills that create jobs, rebuilding our crumbling infrastructure, going cleaner energy and yes we just passed the largest oil drilling in the Arctic are all gud.
I could go town hall and talk about our China, Russian and NATO policies, because they are helpf to our economy, but I won’t. We are strong.
 
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mr.h said:
We are creating jobs, GDP is strong, productivity is up…the excessively high interest rates came from the Fed who was working for the previous administration. They raised rates to fast, which of cause created debt, foreclosures, and defaults.
Spending on bills that create jobs, rebuilding our crumbling infrastructure, going cleaner energy and yes we just passed the largest oil drilling in the Arctic are all gud.
I could go town hall and talk about our China, Russian and NATO policies, because they are helpf to our economy, but I won’t. We are strong.
Click to expand...
So you're saying the fundamentals of our economy are strong?
 
mr.h said:
the excessively high interest rates came from the Fed who was working for the previous administration
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Biden nominated J Powell for a second term:
www.whitehouse.gov

President Biden Nominates Jerome Powell to Serve as Chair of the Federal Reserve, Dr. Lael Brainard to Serve as Vice Chair | The White House

Today, President Biden announced his intent to nominate Jerome Powell for a second term as Chair of the Board of Governors of the Federal Reserve System and to nominate Dr. Lael Brainard to serve as Vice Chair of the Board of Governors of the Federal Reserve System. While our country still faces...
www.whitehouse.gov www.whitehouse.gov

Mind you, Trump and Biden are equally responsible for too much fiscal stimulus in 2020 & 2021. Biden just keeps at it in 2022 and 2023! If he was SO against inflation, he wouldn't have approved the $300B of QE for SVB and Signature. Instead, he would have demanded the DOJ jump into the books of every person involved including Bernie Franks. Nope... we will QE out of this too!
 
mr.h said:
Nothing To See Here GIF by Giphy QA

Everything that has gone wrong in 21,22 and 23 is the fault of the Fed. Raising rates at the fastest pace, ever, was an obvious mistake.
@SpikeUM..Biden and my bubby Yellen have saved our tuchases again.
Click to expand...
No way. The Fed behaved quite responsibly in response to rampant inflation. I am still in disbelief that no one recalls the rates we paid before 2002.
 
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CPI tomorrow.
JD08 said:
So you're saying the fundamentals of our economy are strong?
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With rising interest rates, in such a short period of time, we will be in a recession. The yield curve is inverted and points to a recession…But we have strong job numbers [labor], consumers are spending, disinflation has been lowered, inflation is moderating. Retail sales and manufacturing are robust, and we are in a post Covid economy.
Our economy is in flux, but I have always been on the side of a softer landing and we are doing better than most other economies. I can no longer say that the fundamentals are strong as they are weakening.
 
mr.h said:
CPI tomorrow.

With rising interest rates, in such a short period of time, we will be in a recession. The yield curve is inverted and points to a recession…But we have strong job numbers [labor], consumers are spending, disinflation has been lowered, inflation is moderating. Retail sales and manufacturing are robust, and we are in a post Covid economy.
Our economy is in flux, but I have always been on the side of a softer landing and we are doing better than most other economies. I can no longer say that the fundamentals are strong as they are weakening.
Click to expand...
Thus you are trying to back the current admin but don’t believe your own words. Take your D glasses off when talking finance.
 
mr.h said:
CPI tomorrow.

With rising interest rates, in such a short period of time, we will be in a recession. The yield curve is inverted and points to a recession…But we have strong job numbers [labor], consumers are spending, disinflation has been lowered, inflation is moderating. Retail sales and manufacturing are robust, and we are in a post Covid economy.
Our economy is in flux, but I have always been on the side of a softer landing and we are doing better than most other economies. I can no longer say that the fundamentals are strong as they are weakening.
Click to expand...
Consumer spending could very quickly abate if they feel the bank issue is a repeat of 2008. It didn't help that you had elected officials on a hot mic calling for the media to downplay the SVB/Signature takeovers.
 
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