Finally.
At least they acted fast.
I don’t know what kind of haircut theh fed’s taking but the reality is it doesn’t matter. I liquidity’s a problem vs govt bonds there is NO PROBLEM, except the Fed making the problem and then no proviso for not fixing the problem they made. 🙂
Source date (UTC): 2023-03-13 00:35:31 UTC
Original post: https://twitter.com/i/web/status/1635077090642100224
Reply addressees: @TysonBay @Max_Stoic
Replying to: https://twitter.com/i/web/status/1635075834544541696
–“The right, instead of ever being organized into a coherent political entitym is merely exploited by a rotating cast of grifters for personal profit as the nation falls deeper and deeper into oblivion.”–
Cowards die daily, long, and slow.
Source date (UTC): 2023-03-12 21:19:17 UTC
Original post: https://twitter.com/i/web/status/1635027708513234944
Hmmm.. The inflation game isn’t going to work. It’ll take down the old folks like a scythe, and our lower half has no reserves. So they have to use a different strategy. They’ll resist it but the state’s going to have to ‘own’ a lot of anything that carries paper. That said, I don’t see how money won’t fly to the states.
Can we just close up shop, write it down, sell the US to the the royal demesne, and in doing so kill the dollar and restore the pound and reverse the error of the american revolution? 🙂
Source date (UTC): 2023-03-12 20:42:44 UTC
Original post: https://twitter.com/i/web/status/1635018508005171200
Replying to: https://twitter.com/i/web/status/1635015119662112768
Hmmm.. The inflation game isn’t going to work. It’ll take down the old folks like a scythe, and our lower half has no reserves. So they have to use a different strategy. They’ll resist it but the state’s going to have to ‘own’ a lot of anything that carries paper. That said, I don’t see how money won’t fly to the states.
Can we just close up shop, write it down, sell the US to the the royal demesne, and in doing so kill the dollar and restore the pound and reverse the error of the american revolution? 🙂
Reply addressees: @Fuchs_David_cz @Max_Stoic @federalreserve
Source date (UTC): 2023-03-12 20:42:44 UTC
Original post: https://twitter.com/i/web/status/1635018507896143874
Replying to: https://twitter.com/i/web/status/1635015119662112768
BANKS: WAIT FOR EVIDENCE
I enjoyed the SVB debacle on Friday, and the events created a wonderful opportunity to catch eyeballs and chide, insult, criticize and defame our banking and finacial system, our fed and treasury, our government, and the problems of the ‘experiment’ we’re running with the postwar economy, and funny money.
That said, this is a fed-created problem that could have been fed-solved with a few phone calls, and a little humility. Because the only real problem the company had was holding government bonds at tiny interest instead of filling a vault with at the fed with physical currency and electronic digits. And when the government raised interest rates, those otherwise liquid bonds turned immediately from liquid into illiquid. So does the fed want us to stop buying bonds so it can use our cash in exchange for giving us a couple points of interest? It’s ridiculous.
So this vast drama-queen attention-whoring and wisdom-pretention on social media is embarassing. If there is contagion it’s intellectually embarassing, and confirms the political catastrophe of our government as it continues to fail at one thing after another. Because this isn’t like 08 where there were nonsense novel financial instruments out there (that many of us criticized teh entire time they were used), instead this is the fed flooding the market with cheap money, trading it for a security, then trashing the value of the security.
I’d say why aren’t the grownups in charge? the answer is … there aren’t any.
#SVB #SVBank #SVBCollapse #SVBCrash
Source date (UTC): 2023-03-12 19:57:49 UTC
Original post: https://twitter.com/i/web/status/1635007206071365633
BANKS: WAIT FOR EVIDENCE
I enjoyed the SVB debacle on Friday, and the events created a wonderful opportunity to catch eyeballs and chide, insult, criticize and defame our banking and finacial system, our fed and treasury, our government, and the problems of the ‘experiment’ we’re running with the postwar economy, and funny money.
That said, this is a fed-created problem that could have been fed-solved with a few phone calls, and a little humility. Because the only real problem the company had was holding government bonds at tiny interest instead of filling a vault with at the fed with physical currency and electronic digits. And when the government raised interest rates, those otherwise liquid bonds turned immediately from liquid into illiquid. So does the fed want us to stop buying bonds so it can use our cash in exchange for giving us a couple points of interest? It’s ridiculous.
So this vast drama-queen attention-whoring and wisdom-pretention on social media is embarassing. If there is contagion it’s intellectually embarassing, and confirms the political catastrophe of our government as it continues to fail at one thing after another. Because this isn’t like 08 where there were nonsense novel financial instruments out there (that many of us criticized teh entire time they were used), instead this is the fed flooding the market with cheap money, trading it for a security, then trashing the value of the security.
I’d say why aren’t the grownups in charge? the answer is … there aren’t any.
#SVB #SVBank #SVBCollapse #SVBCrash
Source date (UTC): 2023-03-12 19:57:49 UTC
Original post: https://twitter.com/i/web/status/1635007205840756745
Jacobins: founded in 1789 by anti-royalist deputies from Brittany. Upper middle class.
Hitler: lower middle class, with middle-class traditions.
Che Guevara: upper class, medical student.
Marx: Upper Middle Class.
(Not sure which country you’re from b/c middle class means you…
Source date (UTC): 2023-03-12 16:49:02 UTC
Original post: https://twitter.com/i/web/status/1634959695264751619
Replying to: https://twitter.com/i/web/status/1634949618210603009
EE ON ROUBINI ON MEGATHREATS
(please watch. my two comments below for general audiences:)
1) EE made a minor point that was helpful for general audiences: Lawyers and Economists are paid to identify risks, that improve your chances regardless of which https://www.youtube.com/watch?v=XmxRR3ZG02M…
Source date (UTC): 2023-03-12 16:35:02 UTC
Original post: https://twitter.com/i/web/status/1634956174582849536
Vapid Criticisms
The current problem is the intersection of inflation vs interest rates to suppress it, and no possibility of buyback from the treasury on 2% securities that they could then re-issue at 5% at tiny cost to taxpayers.
This would prevent both SVB failure AND contagion because it was a simple liquidity problem caused by the delta in interest rates due to the killing of the bond market by the treasury by increasing interest rates. I don’t see distortion out there. I see debt out there. But not distortion.
The government, treasury, and fed must choose a delicate balance of regulation that doesn’t constrain investment, but maybe constrains debt expansion, and maybe just consumer debt expansion, and to do that the treasury would have to bring (almost) ALL credit (credit money) expansion IN HOUSE.
Because no one is going to run an economy today on 100% reserves unless the want the entire financial sector to move somewhere that doesn’t.
Cheers
Source date (UTC): 2023-03-12 15:32:50 UTC
Original post: https://twitter.com/i/web/status/1634940518781034498
Vapid Criticisms
The current problem is the intersection of inflation vs interest rates to suppress it, and no possibility of buyback from the treasury on 2% securities that they could then re-issue at 5% at tiny cost to taxpayers.
This would prevent both SVB failure AND contagion because it was a simple liquidity problem caused by the delta in interest rates due to the killing of the bond market by the treasury by increasing interest rates. I don’t see distortion out there. I see debt out there. But not distortion.
The government, treasury, and fed must choose a delicate balance of regulation that doesn’t constrain investment, but maybe constrains debt expansion, and maybe just consumer debt expansion, and to do that the treasury would have to bring (almost) ALL credit (credit money) expansion IN HOUSE.
Because no one is going to run an economy today on 100% reserves unless the want the entire financial sector to move somewhere that doesn’t.
Cheers
Source date (UTC): 2023-03-12 15:32:50 UTC
Original post: https://twitter.com/i/web/status/1634940518659391489