To sell the bonds now would mean they get sold at significant loss. If they can be held until mature they will be worth a lot more.
Again, I'm not going to pretend to know a whole lot here.
The Biden Administration and All Things Politics
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Again, I'm not going to pretend to know a whole lot here.
My understanding is that, due to the interest rate, the bonds are currently undervalued. I have read that this was poor fiscal planning on their part.
That's the amount required to be covered. Is there something that prevents them from covering more, if the FDIC so chooses?
Also, I've been reading that the Fed is stepping in tp help cover the shortfall. Have you read otherwise?
Darkwing Duck
Well-Known Member
Lots
Most mortgages are sold, so banks aren't sitting on long term, high money loans. Most banks aren't chock full of venture capital depositers or crypto-focused, so it's not really something to worry about.
Bucknutz
Well-Known Member
Here is some trending good news…but it’s still year over year inflation which a normal consumer hasn’t felt the ease yet.
View: https://twitter.com/disclosetv/status/1635621509203984386?s=46&t=BMMZjW7vq0_zwnmLDjNTgQ
View: https://twitter.com/disclosetv/status/1635621509203984386?s=46&t=BMMZjW7vq0_zwnmLDjNTgQ
Al-O-Meter
Well-Known Member
Again, I think that is a convenient narrative meant to misdirect away from the precarious situation across the entire sector. The biggest misstep SVB made was to be public about their need to raise capital. Their call for investment was read by the investor class, many of whom had investments in tech start-ups who banked with SVB, of risk and that perception of risk started a bank run.
Talking heads are voicing ideas to distance SVB from the sector. It was exposure to crypto. It was too much VC and tech start-ups money. It was over-allocation on underwater bonds. Nope. The entire sector is weak and none of them can survive a run. All that is needed to crash a bank right now is a strong enough rumor. A lot of people are really nervous. It was enough, although he has publicly denied it, that a Senator floated the idea of censoring social media to stop any rumors of this type.
Mark Kelly Asked If Social Media Companies Could Censor Citizens To Prevent Bank Runs
Rep. Thomas Massie has confirmed that Sen. Mark Kelly was the lawmaker who inquired if social media companies could censor messages that could lead to runs on banks during a Zoom call regarding the failure of Silicon Valley Bank. https://twitter.com/RepThomasMassie/status/1635375691951931393 On...
arizonadailyindependent.com
Darkwing Duck
Well-Known Member
If that's the definition of weakness, being succeptible to a run, financial institutions have been weak since the beginning of banking thousands of years. Banks aren't a storage facility.
fishonjazz
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I remember when a poster on jazzfanz said that trump isn't the leader of the republican party anymore.
www.yahoo.com
www.yahoo.com
Republicans obviously all still tremble in fear of trump.
MIA in 2024: The Republicans Trump Vanquished in 2016
If Donald Trump were not running for president in 2024, there’s a group of Republicans who could be expected to vie for the White House: the ones Trump beat in 2016. Instead, many of these once high-wattage candidates are either skipping the 2024 cycle or have bowed out of national politics...
House Republicans Quietly Halt Inquiry Into Trump's Finances
WASHINGTON — House Republicans have quietly halted a congressional investigation into whether Donald Trump profited improperly from the presidency, declining to enforce a court-supervised settlement agreement that demanded that Mazars USA, his former accounting firm, produce his financial...
Republicans obviously all still tremble in fear of trump.
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LOL!I remember when a poster on jazzfanz said that trump isn't the leader of the republican party anymore.
MIA in 2024: The Republicans Trump Vanquished in 2016
If Donald Trump were not running for president in 2024, there’s a group of Republicans who could be expected to vie for the White House: the ones Trump beat in 2016. Instead, many of these once high-wattage candidates are either skipping the 2024 cycle or have bowed out of national politics...
House Republicans Quietly Halt Inquiry Into Trump's Finances
WASHINGTON — House Republicans have quietly halted a congressional investigation into whether Donald Trump profited improperly from the presidency, declining to enforce a court-supervised settlement agreement that demanded that Mazars USA, his former accounting firm, produce his financial...
Republicans obviously all still tremble in fear of trump.
They all some little bitches. Let's be real. They are so scared of this...I remember when a poster on jazzfanz said that trump isn't the leader of the republican party anymore.
MIA in 2024: The Republicans Trump Vanquished in 2016
If Donald Trump were not running for president in 2024, there’s a group of Republicans who could be expected to vie for the White House: the ones Trump beat in 2016. Instead, many of these once high-wattage candidates are either skipping the 2024 cycle or have bowed out of national politics...
House Republicans Quietly Halt Inquiry Into Trump's Finances
WASHINGTON — House Republicans have quietly halted a congressional investigation into whether Donald Trump profited improperly from the presidency, declining to enforce a court-supervised settlement agreement that demanded that Mazars USA, his former accounting firm, produce his financial...
Republicans obviously all still tremble in fear of trump.
Ms. Doubtfire did a better job of playing an overweight grandma than Trump does of playing a powerful man.
fishonjazz
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On Wednesday morning, the Bureau of Labor Statistics released a PPI (Producer Price Index) report that showed lower-than-expected inflation for the month of February. Prices were expected to rise .3 percent, but instead they fell:
The news comes on the heels of a CPI report that President Joe Biden pointed out “shows annual inflation is down by a third from this summer at a time when the unemployment rate remains near a 50-year low.”
SteakNEggs
Well-Known Member
Inflation goes up just not fast, banks are crashing, were in a recession and Democrats are happy. The stupidity is endless. Uneducated... They are literally celebrating inflation now lololololol. Brain dead morons really.
But price increases rose sharply again on a monthly basis, fueling concerns that a steady pullback in inflation at the end of last year has stalled.
On a monthly basis, though, prices advanced 0.4% following a 0.5% increase in January. Previously, monthly cost increases had slid to 0.1% to 0.2%.
"Though stress has spiked in the banking system, the Fed is still highly focused on taming inflation," says Ryan Sweet, chief U.S. economist of Oxford Economics, who expects a quarter-point hike.
Ian Shepherdson of Pantheon Macroeconomics also expects a quarter-point increase, "assuming markets stay calm and no more banks fail."
Despite the big monthly increase in consumer prices, economists still expect yearly inflation to resume its descent in the coming months. Goods prices generally have fallen as supply chain bottlenecks have improved and rent increases are expected to pull back.
But price increases rose sharply again on a monthly basis, fueling concerns that a steady pullback in inflation at the end of last year has stalled.
On a monthly basis, though, prices advanced 0.4% following a 0.5% increase in January. Previously, monthly cost increases had slid to 0.1% to 0.2%.
"Though stress has spiked in the banking system, the Fed is still highly focused on taming inflation," says Ryan Sweet, chief U.S. economist of Oxford Economics, who expects a quarter-point hike.
Ian Shepherdson of Pantheon Macroeconomics also expects a quarter-point increase, "assuming markets stay calm and no more banks fail."
Despite the big monthly increase in consumer prices, economists still expect yearly inflation to resume its descent in the coming months. Goods prices generally have fallen as supply chain bottlenecks have improved and rent increases are expected to pull back.
Consumer price inflation rate slows to 6% in February, but prices post strong monthly gain
February CPI report shows annual inflation eased again but prices increased sharply on monthly basis. Core CPI gain slowed to 5.5%
www.usatoday.com
SteakNEggs
Well-Known Member
It's just crazy how little people understand of the economy. They celebrate interest going up and inflation rising. Extremely undeducated and easy to manipulate.
Inflation rose in February but was in line with expectations, likely keeping the Federal Reserve on track for another interest rate hike next week despite recent banking industry turmoil.
The consumer price index increased 0.4% for the month, putting the annual inflation rate at 6%, the Labor Department reported Tuesday. Both readings were exactly in line with Dow Jones estimates.
But price increases rose sharply again on a monthly basis, fueling concerns that a steady pullback in inflation at the end of last year has stalled.
Consumer prices increased 6% from a year earlier, down from 6.4% in January and a 40-year high of 9.1% in June, according to the Labor Department’s consumer price index.
That marked the smallest annual gain since September 2021.
On a monthly basis, though, prices advanced 0.4% following a 0.5% increase in January. Previously, monthly cost increases had slid to 0.1% to 0.2%.
Inflation rose in February but was in line with expectations, likely keeping the Federal Reserve on track for another interest rate hike next week despite recent banking industry turmoil.
The consumer price index increased 0.4% for the month, putting the annual inflation rate at 6%, the Labor Department reported Tuesday. Both readings were exactly in line with Dow Jones estimates.
But price increases rose sharply again on a monthly basis, fueling concerns that a steady pullback in inflation at the end of last year has stalled.
Consumer prices increased 6% from a year earlier, down from 6.4% in January and a 40-year high of 9.1% in June, according to the Labor Department’s consumer price index.
That marked the smallest annual gain since September 2021.
On a monthly basis, though, prices advanced 0.4% following a 0.5% increase in January. Previously, monthly cost increases had slid to 0.1% to 0.2%.
Consumer price inflation rate slows to 6% in February, but prices post strong monthly gain
February CPI report shows annual inflation eased again but prices increased sharply on monthly basis. Core CPI gain slowed to 5.5%
www.usatoday.com