Stock of the Day
Stock of the Day
Out of context: Reply #614
- Started
- Last post
- 630 Responses
- drgs-2
All bank stocks are halted, ponzi is up -- what is happening?
- Surprised nobody has been talking about it. Silicon Valley Bank failed last week. Over the weekend, signature bank was shut as well.monNom
- Now other small and midsized regional banks are getting sold as the reason suggested for Silicon Valley Banks failure is endemic.monNom
- That is, an accounting rule change allowed banks to hold some securities in a bucket marked “hold to maturity”. And some in a bucket “Mark to market”monNom
- The smaller mark to market bucket has been losing value as interest rates have been rising. The hold to maturity bucket was on the books at full value.monNom
- Even though it had actually lost value the same as Mark to market. SVB had enough losses between the two that they wiped out all of their equity and had to closmonNom
- As a result: Investors get 0. Insured depositors should get their money but may take a while. Govt backstopping uninsured depositors they say.monNom
- And it seems like SVB is just the tip of the iceberg. First Republic down 63% today suggests they will be next to go. It’s a contagion.monNom
- Lots of commentary over here if you want to follow along. Http://www.zerohedge…monNom
- It's called capitalism, Google it.utopian
- no one mentioned it here yet because trump isn't presidentGnash
- FED pivot this summer. Lock in a fixed rate interest saving account. Wait for cheaper mortgage rates.shapesalad
- So, the long and the short of it is: this is going to be 2008 all over again?Continuity
- What a relief, I thought we were only going to have war and climate change to entertain us in 2023. Let's have another Great Recession for the lulz.Continuity