What's Going on with the Banks

Yes, but the main issue is that higher interest rates are forcing institutions like SIVB to reprice their investments to market. SIVB is holding paper of companies they lend money to. Those companies can't borrow to refinance at low rates and are showing declining valuations and maybe are going to go bust. That's was the essence of what Danielle DiMartino was talking about.

 

If Powell doesn't take the rates lower, many Private Equity firms will show big losses.

Is that it for the banking sector correction?

 

Jim Cramer has no shame. He is a worthless shill for the elites 

 

https://nypost.com/2...ley-bank-stock/

Short sellers spread rumors to get out of SVB.

If Powell Lowers the rates prematurely, 300 million Americans are losing to inflation compared to their wage increases. Keep in mind 7% inflation requires to spend after-tax money. Wage or pension increases are pre-tax money. a 5% raise is actually only 4.25% raise after paying taxes. But your grocery bill higher by 7% requires you to spend after tax money. You have to spend 8.05% in 15% tax bracket to pay 7% more.

If Powell Lowers the rates prematurely, 300 million Americans are losing to inflation compared to their wage increases. Keep in mind 7% inflation requires to spend after-tax money. Wage or pension increases are pre-tax money. a 5% raise is actually only 4.25% raise after paying taxes. But your grocery bill higher by 7% requires you to spend after tax money. You have to spend 8.05% in 15% tax bracket to pay 7% more.

 

 

Please, no pop quiz on this, ok?

Yes, but the main issue is that higher interest rates are forcing institutions like SIVB to reprice their investments to market. SIVB is holding paper of companies they lend money to. Those companies can't borrow to refinance at low rates and are showing declining valuations and maybe are going to go bust. That's was the essence of what Danielle DiMartino was talking about.

 

If Powell doesn't take the rates lower, many Private Equity firms will show big losses.

 

 

Banks dont have to price bonds to market any more. Neat cheat, huh?

NEW YORK (Reuters) - New Century Financial Corp. filed for bankruptcy protection on Monday amid a surge in homeowner defaults, the biggest mortgage lender to collapse in the slumping U.S. housing market.

 

 

April 2, 2007? It indeed was nothing to worry about, yet

Edited by linrom1, 11 March 2023 - 09:49 PM.

New Century Financial didn't go bankrupt becasue of homeowners' defaults in 2007. It went bankrupt becasue of fraud. It's was the same for Silvergate crypto bank: money laundering scam. It's going to be the same for SVB. They were lending out money and holding what----I bet it's something as valuable as tokens.

 

It's not their inability to mange interest rate risk. They teach that in Banking 100.

Edited by linrom1, 11 March 2023 - 10:17 PM.