And so it begins

[rbstern]

Hold on a sec...
There is no indication that this single bank will cause a chain of reaction. Bank Failure of 2008 cannot be compared to SVB fallout. That's like saying an ice cuve in my cup can sink a titanic. This is totally uncalled for

You seem to be unaware how interconnected this all is. If you are referrencing 2008, that's ignorant.

2008 started with one (!) insurance company not being able to pay CDO swaps. When the banks' leverage ratios went to **** because of the unexpected exposure, they went over like bowling pins. Why? Because the more leverage they take on, the more money they make. It's like just-time-inventory at a factory, but with money. One key supplier goes down and the factory stops making widgets. The factory, in this case, makes loans, payrolls, withdrawals, etc.

The levers may be different this time, but the economic/monetary rules remain the same.

Hopefully, this stops with a small handful of banks. Hard to say at this point.

 

[rbstern]

Im advising the opposite...you should be buying First Republic Bank Stock (FRC) at $27, that is a steal of the century considering the book value of the assets they are holding.

This is an opportunity to buy...not be afraid

It may be a great opportunity for a small risk.

Just a reminder: The last time this happened, the banks' assets were wildly (and fraudulently) overstated.

Not a game you want to play with your lunch money.

 

[Bear44]

Sounds to me like someone in this is all for govt.. if we get our money outta the bank then when he decides to get his money he WONT HAVE ANY TO GET..

You do realize that banks are not the government, right?

 

[Bear44]

Are you of the opinion free speech is a problem when people actually exercise it?

Reality check: There is serious, underlying weakness in the financial system due to poor fiscal policy and discipline on the part of the United States government, along with even poorer regulatory oversight in the FinTech industry. The risk of that weakness is now manifesting itself in high profile bank closures.

Your apparent position: Everyone is better off acting the ostrich, head in the sand, so reality won't be so harsh for society as a whole.

I'm not suggesting people run to the bank, pull their cash, and stick it under their mattress. But for anyone with too much exposure to banks heavy into crypto and highly levered venture entities, it would be best to make sure all of your money is FDIC backed, and if this gets worse, perhaps consider whether that may be enough, and whether your your position needs a hedge.

All sound advice and absolutely not saying that everyone should go pull their money out, as some here have done.

As for free speach I'm all for it, but just because you have the right to say what you want, it doesn't mean you can't be called a dumbass for saying it.

 

[BDR1]

You do realize that banks are not the government, right?

That’s a Buncha bs.. but that’s my opinion

 

[Nuke And Juke]

It may be a great opportunity for a small risk.

Just a reminder: The last time this happened, the banks' assets were wildly (and fraudulently) overstated.

Not a game you want to play with your lunch money.

The market thrives on volatility. You have to look through the fog and jump at the opportunity. I've never met someone who made millions by sitting on the sidelines or simply just did NOTHING.

People want this to be an event so they can say

1) I told you so
2) This is the beginning. The beginning has begun

Nothing can be further from the truth.

 

[Ken Ford]

For someone that isn't encouraging it, you sure seem to make a strong argument in favor of it.

How many people do you think will read this thread? How many people do you think they will tell about it?

The number of people in this thread is a pure penitence compared to the number of people the mainstream media has already broadcast too.
We hardly a gnat in comparison to the rest of the WWW

 

[Nuke And Juke]

You seem to be unaware how interconnected this all is. If you are referrencing 2008, that's ignorant.

2008 started with one (!) insurance company not being able to pay CDO swaps. When the banks' leverage ratios went to **** because of the unexpected exposure, they went over like bowling pins. Why? Because the more leverage they take on, the more money they make. It's like just-time-inventory at a factory, but with money. One key supplier goes down and the factory stops making widgets. The factory, in this case, makes loans, payrolls, withdrawals, etc.

The levers may be different this time, but the economic/monetary rules remain the same.

Hopefully, this stops with a small handful of banks. Hard to say at this point.

What levers? Please be specific on what the levers are?

What asset on the bank's book of business are you aware of that have decreased significantly to cause a failure. And how is this failure associated (interconnected) to another bank?

There is no commonality in the asset book value here. There is no CDO swaps involved.

All this is heresay and conjecture. This is why it's an opportunity to buy

 

[BHPSteel]

Bank runs and crises of confidence really aren't typically driven by the interconnection of banks and the assets they invest in. They're driven by confidence in banks overall, and typically manifest as liquidity events.

If you doubt this, explain why even the large banks have suffered declines in their share price over the last few days. Just as owners of the shares of banks are expressing their lack of confidence in the banking sector, savers with skin in the game are expressing their lack of confidence in individual banks (and often the banking sector too).

Ultimately, every bank in America has a number of characteristics in common. They share the moral hazard of overleveraged and usually over-concentrated balance sheets, which they have to do if they want to stay in business. They also share the hazard of building portfolios dependent on borrowed money offered in a narrow band of (low) interest rates. And they operate with the expectation that when **** hits the fan, that if they're holding enough in customer assets, that the government will declare that they're "too big to fail" and the people of America will have to bail their asses out. Again.

 

[bigt61]

5:35pm today UnitedBank Zebulon GA

No ATM withdrawals. No automated interactive teller machines giving out cash either.

Deposits only.

Your experience may vary.