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The entire system is screwed up and designed to destabilize or transfer wealth to the top!
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The entire system is screwed up and designed to destabilize or transfer wealth to the top!
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Mike Norman considers the following as important:
This could be interesting, too:
Mike Norman writes Class
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| The entire system is screwed up and designed to destabilize or transfer wealth to the top! |
Biden made a mistake leaving a Republican in charge of the fed. Like most republicans, he’s an idiot
Great point that the banks are only allowed to own certain assets, that the idiotic fed has now smashed. Illogical and unfair
I love the scene at 4:40 🙂
That's the Mike we all love!
SVB bad actors get bailed out, mismanaged assets of these loser banks, not to worry the insider traders at the fed will do the INTERNAL investigation of the limp action by Fed. Bring back Glass Stegall and Fasb rule no more mark to fantasy please. I want to get bailed out by the fed on my losing trades. Who do I contact?
Just in time for black out period for stock buy backs (Reagan started this up again after Joe Kennedy first SEC chairman outlawed this action.)
Mike the gangsters at the fed know raising interest rates causes inflation, but this is a neccessary evil to permit enriching thier partners.
SVB mismanaged thier bank assets, just like a captain who runs a ship into a reef, no excuse. What risk to markets? Missing in action.
Mikey-doggy is on fire today!
AFU: All Fired Up!
love it when Mike rants!
More anger please…we need all to be angry with the central bank club. Look at Brian Gaynor's latest speecg re: NZ. The guy is a brain dead copycat. Makes no sense. Monetarist mind virus!
SVB did have a 57% investment portfolio vs 24% US average and did not hedge interest rate risk as they should have, and other banks do.
Hedging wouldn't have made any difference. Do we really want homogenous banks that do the same as everybody else? What SVB did was lend money too cheaply, which meant that when their non-interest bearing deposits walked out the door they couldn't reach the bar for Fed liquidity support. They simply didn't have anything worth pawning once interest rates went up as high as they have. SVB's failure is down to trying to control an economy with interest rates – as well as naive banking.
Great explanation but, as assets are limited by the capital a bank holds, could you explain what is included in the capital, just like you did with the three types of assets?
Just research 'CET1' and CET1 ratios, and what classifies as Tier 1 capital. Go read.
I commented on your video, I think it was in April 2022, that they are going to bring down all the banks and then the Fed….
They could have hedged their interest rate risk via swaps.
Move to the Virgin Islands.
It is getting crazy!
Yeah the big banks are the biggest beneficiaries!
I won't say that SVB did nothing wrong. There was certainly mismanagement.
Are you still pounding the table to have people purchase bank stocks?
I shouldn't even respond, because this is meant to be a smart-ass cheap shot gotcha question, and you are a clown. There's $5.5 trillion in reserves in the system, which the Fed is literally giving banks $260 bln annually to be added to their capital. And that's just going to go up. I'm not a seller under those conditions.
@Mike Norman MMT Economics it really wasn't, Mike. I bought CS and got burnt… Nothing major. Bought a few lots of pacw as a trade and did ok. Don't have much faith that the worst is behind us. Not sure if some other banks hedges are about to blow up in their faces. CS seems to have been careless or more aggressive in their bond holdings.
@Mike Norman MMT Economics also, I never asked if you were a seller. I asked if you were a buyer. Holding is a decision as well.
@R O Y G B I V I am fully invested. I have no investable cash right now. If I did I would be buying the big banks for sure.
To not do something wrong probably it is not enough to successfully manage a bank.
Ok, they didn't break the rules, but they poorly manage their business. A lot of regulations cannot guarantee a successfully result of a business. This is very hard to understand for MMT.
MMT simple cannot understood this kind of situations. MMT can explain regular rutine but fail on crisis.
So: MMT can explain very well step by step path to catastrophe.
How about "banks is solid" "buy banks shares because are at discount prices"…. your advices froma while a go.
Moody just downgraded banking system of USA.
Good luck with double digit inflation and prepare to kiss goodbay, on this path, to world reserve currency for dollar.
Remember 2008, house prices are solid. You wrong big time. Was a crisis. Now banking you miss again.
If all banks are required to hold government securities, then why aren’t all banks suffering like SVB given the burden of increased interest rates in decreasing the value of their assets?