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What's Going on with the Banks


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#1 linrom1

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Posted 09 March 2023 - 03:46 PM

https://www.traders-...ity-or-america/

 

This scenario is playing out: mark-to-market.



#2 Iblayz

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Posted 09 March 2023 - 04:13 PM

Crushed. -7.70% is an eye opener. In four days the banks have obliterated 60 plus days of prior uptrend from the October low. They simply have to defend that low.



#3 skott

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Posted 09 March 2023 - 06:18 PM

did someone say a big drop was coming?  if the system doesn't survive, terrible controls will follow



#4 skott

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Posted 09 March 2023 - 08:19 PM

check out SIVB for today. That is SVB financial group, down 60% TODAY!   I'm sure it will all be fine. I read the Fed actually increased it's asset holdings today by 2.6 billion. I still say high odds that when the fed cuts, the markets crash bigly. that is probably next year. Let's get the 2023 crash out of the way first



#5 fib_1618

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Posted 09 March 2023 - 08:21 PM

One doesn't have to look any further than the budget that was released today by the White House...it's the most sickening, divisive and anti-capitalistic budget I've EVER seen by any American president...it's an economic destroyer. Hopefully, it will be cleaned of all its taxes and cultural/socialistic spending by the House, but I'm not holding my breath that they'll have the backbone to make a stand.

 

Fib


Edited by fib_1618, 09 March 2023 - 08:21 PM.

Better to ignore me than abhor me.

“Wise men don't need advice. Fools won't take it” - Benjamin Franklin

 

"Beware of false knowledge; it is more dangerous than ignorance" - George Bernard Shaw

 

Demagogue: A leader who makes use of popular prejudices, false claims and promises in order to gain power.

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#6 skott

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Posted 09 March 2023 - 08:25 PM

One doesn't have to look any further than the budget that was released today by the White House...it's the most sickening, divisive and anti-capitalistic budget I've EVER seen by any American president...it's an economic destroyer. Hopefully, it will be cleaned of all its taxes and cultural/socialistic spending by the House, but I'm not holding my breath that they'll have the backbone to make a stand.

 

Fib

 

 

when I say communism is taking over people get confused, they think Russia. Actually it is collectivization of power, and the means of production. USA has to dress up a different way so people don't realize what is going on. Nothing good ever happens when you stop people's freedom to speak. They did it big time during the pandemic with Dr's, scientists, etc.  We better wake up and fight back



#7 fib_1618

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Posted 09 March 2023 - 09:53 PM

 

One doesn't have to look any further than the budget that was released today by the White House...it's the most sickening, divisive and anti-capitalistic budget I've EVER seen by any American president...it's an economic destroyer. Hopefully, it will be cleaned of all its taxes and cultural/socialistic spending by the House, but I'm not holding my breath that they'll have the backbone to make a stand.

 

when I say communism is taking over people get confused, they think Russia. Actually it is collectivization of power, and the means of production. USA has to dress up a different way so people don't realize what is going on. Nothing good ever happens when you stop people's freedom to speak. They did it big time during the pandemic with Dr's, scientists, etc.  We better wake up and fight back

 

More closely related to China than Russia, but the main objective of any type of collectivism/Marxism is to have the populace turn on each other in an effort to create cultural chaos toward the breakdown of a country’s sovereignty to exist, in of which, only the State can make things “all better”...from cradle to grave. And as far as waking up and fighting back, after 2 years of totalitarianism and dystopian behavior that accelerated this same chaos, it would seem that the mid terms proved that the fight to rise up against such spiritual poison has already been castrated for fear of being labeled something you're not.

 

Anyway…read it and weep folks…this affects us all: https://www.atr.org/...-bidens-budget/

 

Fib


Edited by fib_1618, 09 March 2023 - 10:59 PM.

Better to ignore me than abhor me.

“Wise men don't need advice. Fools won't take it” - Benjamin Franklin

 

"Beware of false knowledge; it is more dangerous than ignorance" - George Bernard Shaw

 

Demagogue: A leader who makes use of popular prejudices, false claims and promises in order to gain power.

Technical Watch Subscriptions



 


#8 skott

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Posted 09 March 2023 - 11:31 PM

https://finance.yaho...-223912623.html

 

yahoo calls it a banking rout. As I said before, I hope they are not going to break everything on purpose. Freedom will be gone



#9 Iblayz

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Posted 09 March 2023 - 11:38 PM

Indeed, as Skott mentioned above, SIVB was a big problem and it appears that the panic spread among bank issues. Problem is, SIVB fell another 20 plus percent after hours. There is a Marketwatch article that addresses the issue. Some banks were poorly prepared for the dramatic rise in interest rates (even though higher rates normally increase bank margins). I read the article, and in my most basic interpretive terms, here is the deal (in truth, this is my simple explanation and it is more complicated than this). Let's say that a certain bank lent heavily into the fixed rate loan market (like mortgages, autos, etc.) when interest rates were extremely low. Everything was hunky dory as long as rates were under "control". Problem is, they didn't stay that way (as if they always have!). As rates go dramatically higher and the market takes a big hit, loan demand craters at the higher rates. But, as all banks do, this bank has to borrow money for short term funding and pay interest on that money. And as rates rise, it is forced to pay higher rates to depositors in order to maintain their business. Over several months this bank finds itself paying out more interest than the interest that it is taking in. In other words, its net interest margin is now negative due to the heavy numbers of fixed rate loans at rates significantly LOWER than the interest rates it now must pay to survive.

 

The after hours swoon relates to reports of advisers telling large depositors to get their money out of SVB (Silicon Valley Bank, SIVB is the parent). We could see a FED bailout here within a day or two. On February 2nd, SIVB hit $348.06 per share and closed at $333.50. Today it closed at $106.04 after touching $100.00 intraday. It went as low as $74.51 after hours.

 

The article I referenced is here. There are a few other banks that have the same problem but the article does point out that most banks have fared okay here so at some point cooler heads "should" prevail.....but you never know who else could be connected and drawn into this mess.


Edited by Iblayz, 09 March 2023 - 11:40 PM.


#10 pdx5

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Posted 09 March 2023 - 11:41 PM

The biggest tax hike was reducing your net worth and earnings by 16% in 2 years. That tax will apply to all, even those on welfare, social security etc because of loss of buying power.
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