Theme: Institution

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

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