Banks Failing: Is It 2008 Again?

[AussieMan]

I watched this video to understand what happened.

He mentions people may/have cash run small banks and deposit into large banks

What incentivised them to bank with local/small banks to begin with?
Is it higher interest rates on deposits? Lower fees?
Lower borrowing costs?

[farmbochur]

What incentivised them to bank with local/small banks to begin with?

IME, they make a safe place to deposit MO's and BG checks

[CountValentine]

If you have over 250k in an account in a big bank, would you pull it out now?

If it is not covered by FDIC insurance yes or change the account structure so it is covered.
This should be done even without what's going on.

[CountValentine]

https://twitter.com/Grit_Capital/status/1634205363657400324

First Republic says its liquidity remains 'very strong' in bid to calm nerves following Silicon Valley Bank's collapse
https://www.businessinsider.com/first-republic-says-liquidity-very-strong-bid-calm-nerves-2023-3

[ExGingi]

This is a long tweet. Click to read it in full.

That was when T-Bill rates hit 5%, all the yield seeking accounts, and yes, they were enough to matter, started leaving for money markets and T-Bills. That pushed their deposit bleed to the point that forced them to sell securities take a loss and announce a capital raise … which freaked everybody out (SVB stock down 61% Thursday).

And, as this chart shows, THIS IS A PROBLEM FOR ALL OF BANKING, not just SVB. All banks, as I noted the retweet below, thought they could offer 0.50% deposit rates (orange) forever and no one would ever move.

The sleeping giant, the American public, awoke at 5% (blue). Now at cocktail parties instead of regaling their friends about crypto, Ark, or the price of wheat, they are now bragging how they ditch their near 0% yield savings account for a 4.9% Schwab money market account!  How smart am I!!

https://twitter.com/biancoresearch/status/1634979304755822594

[YitzyS]

Did evreyone suddenly become experts in economics?

[Euclid]

This is a long tweet. Click to read it in full.

Good rule of thumb for 2023: ignore anyone who's subscribed to Twitter Blue and speaks as an expert.

[ExGingi]

Good rule of thumb for 2023: ignore anyone who's subscribed to Twitter Blue and speaks as an expert.

Good rule of thumb for all time: Take all rules of thumb with at least a grain of salt.

[EliJelly]

I don't see why Biden would have a hard time reading out this when addressing the issue

[YitzyS]

I don't see why Biden would have a hard time reading out this when addressing the issue

Well, thanks to ChatGPT, it took my 2 minutes to create this meme instead of 15...

[Dan]

https://www.dansdeals.com/points-travel/banking/93-silicon-valley-banks-deposits-didnt-fdic-coverage-dont-forget-make-sure-funds-insured/

[Abey]

https://www.dansdeals.com/points-travel/banking/93-silicon-valley-banks-deposits-didnt-fdic-coverage-dont-forget-make-sure-funds-insured/

Great write up !!

[est]

Is no one else concerned to be putting so much money into Tbills? with the debt so high and economy so volatile and a need to bail out banks...it seems so unstable to invest in the government

[ExGingi]

Is no one else concerned to be putting so much money into Tbills? with the debt so high and economy so volatile and a need to bail out banks...it seems so unstable to invest in the government

What are those dollar bills in your wallet?

[chevron]

Svb we're morons...I have second hand reliable knowledge just in general they were doing stupid things and it's coming out now

[PlatinumGuy]

This isn't about the economy and banking. It's about civilization as we know it. The collapse of banking will be the collapse of government minted currency and the end of the governments main method of policing against things like drugs, terror, & human trafficking

[aygart]

This isn't about the economy and banking. It's about civilization as we know it. The collapse of banking will be the collapse of government minted currency and the end of the governments main method of policing against things like drugs, terror, & human trafficking

Don't forget about the Jews! It is all their fault!

[Abey]

Svb we're morons...I have second hand reliable knowledge just in general they were doing stupid things and it's coming out now

was not expected for every depositor to know that. Contagion starts with one idiot

[gozalim]

Don't forget about the Jews! It is all their fault!

https://twitter.com/DBashIdeas/status/1634934089907331072

[Yef]

Why can’t the gov pay for the long term investments that the bank has. Everyone keeps their money, bank stays open, economy stays stable and government makes a profit(in the long term at least)
Just wondering!!