The losses are being covered by the FDIC, which is a bank-supported institution, and the Fed.
The Biden Administration and All Things Politics
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Al-O-Meter
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That is the narrative being pushed. In reality the bonds are not worth what SVB needed them to be worth to remain solvent. It wasn't an issue of liquidity but of a bank run forcing unrealized losses to become realized losses. SVB didn't have the assets to cover deposits. If SVB sold every asset they had for what it is worth, they could not make everyone whole.
The government is going to step in and make all SVB depositors whole. Biden says the FDIC payments will cover that cost but the FDIC payment are insufficient because they were set up to only have enough to cover $250k per depositor. The government has no choice. They have to make everyone whole and taxpayers will cover the gap.
The interest rate of government bonds is a problem but it is not *THE* problem. How many mortgages do you think are fixed at an interest rate below 4%? Nearly every bank in the country is sitting on a massive pile of loans with fixed interest rates lower than the current rate of inflation, and they lose money on those loan every day but so long as they don't sell the loan off, the loss is considered "unrealized". Nearly every bank is in the SVB boat and a run anywhere could crash any of them. So we get a lot of comforting happy talk.
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.
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.
The Thriller
Well-Known Member
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
SteakNEggs
Well-Known Member
"HEY GUYS INFLATION ROSE BUT NOT AT THE EXPECTED RATE!!!!! I'M REALLY SMART". Uneducated as f* lol
Meta, the parent company of Facebook and Instagram, announced Tuesday it will cut 10,000 employees in its second major round of cuts in just four months—making the social media giant the latest U.S. company to reduce its headcount this year, following recent cuts at Disney, eBay, General Motors, Twitter and Yahoo.
www.forbes.com
2023 Layoff Tracker: Meta Cuts 10,000 Employees
TOPLINE
Meta, the parent company of Facebook and Instagram, announced Tuesday it will cut 10,000 employees in its second major round of cuts in just four months—making the social media giant the latest U.S. company to reduce its headcount this year, following recent cuts at Disney, eBay, General Motors, Twitter and Yahoo.
First Quarter 2023 Layoff Tracker: Meta, Amazon, Twitter, Twilio Make Cuts
Amazon, Alphabet, Meta, Salesforce and Yahoo have all slashed staff this year, citing cloudy economic forecasts.
www.forbes.com
SteakNEggs
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SteakNEggs
Well-Known Member
"Core" inflation, which strips out the more volatile costs of food and energy, rose 0.5% over the prior month in February and 5.5% over last year, marking the smallest 12-month increase since December 2021. Economists had estimated "core" inflation would rise 0.4% on a month-over-month basis and increase 5.5% compared to February 2022.
"The 0.5% [month-over-month] rise in core consumer prices last month adds to the evidence that inflation remains stubbornly high, but the ongoing fallout from the SVB crisis over the coming days is still likely to have a bigger bearing on what happens at next week’s FOMC meeting," wrote Andrew Hunter, deputy chief U.S. economist at Capital Economics, in a note on Tuesday.
Food costs continued to rise in February, with the food index rising 0.4% over last month. The food at home index rose 0.3% over last month as five of the six major grocery store food group indexes increased over the month, the BLS noted. Egg prices fell 6.7% in February.
finance.yahoo.com
"The 0.5% [month-over-month] rise in core consumer prices last month adds to the evidence that inflation remains stubbornly high, but the ongoing fallout from the SVB crisis over the coming days is still likely to have a bigger bearing on what happens at next week’s FOMC meeting," wrote Andrew Hunter, deputy chief U.S. economist at Capital Economics, in a note on Tuesday.
Food costs continued to rise in February, with the food index rising 0.4% over last month. The food at home index rose 0.3% over last month as five of the six major grocery store food group indexes increased over the month, the BLS noted. Egg prices fell 6.7% in February.
Inflation: Consumer prices rise 6% over last year in February, slowest since Sept. 2021
Inflation showed signs of cooling in February after prices picked up to start the year, according to the latest data released Tuesday morning.
SteakNEggs
Well-Known Member
It's soooo crazy how uneducated someone can be and celebrate inflation. Democrats think rising inflation is a good thing. They are so uneducated they think that just because a few index's fell even thugh they are the ones responsible for *** rising to record levels is something to brag about. This is their success. Inflation rising in important areas like food cost is a success to them. That's how big of a failure they are. Rising inflation but not at record rates is something to brag about. They are bragging about negatives.
Food prices rose 0.4% and 9.5%, respectively. Meat, poultry, fish and egg prices fell 0.1% for the month, the first time that index has retreated since December 2021. Eggs in particular tumbled 6.7%, though they were still up 55.4% from a year ago.
Shelter costs, which make up about one-third of the index’s weighting, jumped 0.8%, bringing the annual gain up to 8.1%. Fed officials largely expect housing and related costs such as rent to slow over the course of the year.
“Housing costs are a key driver of the inflation figures, but they are also a lagging indicator,” said Lisa Sturtevant, chief economist at Bright MLS. “It typically takes six months for new rent data to be reflected in the CPI. The quirk in how housing cost data are collected contributes to overstating current inflation.”
Still, shelter costs accounted for more than 60% of the total CPI increase and rose at the fastest annual pace since June 1982.
www.cnbc.com
Food prices rose 0.4% and 9.5%, respectively. Meat, poultry, fish and egg prices fell 0.1% for the month, the first time that index has retreated since December 2021. Eggs in particular tumbled 6.7%, though they were still up 55.4% from a year ago.
Shelter costs, which make up about one-third of the index’s weighting, jumped 0.8%, bringing the annual gain up to 8.1%. Fed officials largely expect housing and related costs such as rent to slow over the course of the year.
“Housing costs are a key driver of the inflation figures, but they are also a lagging indicator,” said Lisa Sturtevant, chief economist at Bright MLS. “It typically takes six months for new rent data to be reflected in the CPI. The quirk in how housing cost data are collected contributes to overstating current inflation.”
Still, shelter costs accounted for more than 60% of the total CPI increase and rose at the fastest annual pace since June 1982.
Inflation gauge increased 0.4% in February, as expected and up 6% from a year ago
Excluding volatile food and energy prices, core CPI increased 0.5% in February and 5.5% on a 12-month basis.
www.cnbc.com
SteakNEggs
Well-Known Member
Democrats are such failures they brag about failures just that it wasn't as bad as a failure as predicted. This is the Democratic party ladies and gentlemen. Bragging about failures.
The CSO Consumer Price Index (CPI) rose by 8.5% between February 2022 and February 2023.
That’s up from an increase of 7.8% in the 12 months to January 2023, and the 8.2% increase in the 12 months to December 2022.
February is the seventeenth consecutive month where the annual increase in the CPI has been at least 5%.
The largest increases were a 26% rise in housing, water, electricity, gas and other fuels; and a 13.1% rise in food and non-alcoholic beverages.
Cost-of-living: Annual rate of inflation rises slightly to 8.5%
The CSO Consumer Price Index (CPI) rose by 8.5% between February 2022 and February 2023.
That’s up from an increase of 7.8% in the 12 months to January 2023, and the 8.2% increase in the 12 months to December 2022.
February is the seventeenth consecutive month where the annual increase in the CPI has been at least 5%.
The largest increases were a 26% rise in housing, water, electricity, gas and other fuels; and a 13.1% rise in food and non-alcoholic beverages.
SteakNEggs
Well-Known Member
Him and his cartel might be the most corrupt president in history. @Red as much as you cry about Trump every 35 seconds I'm not surprised that your hypocriteness doesn't care about this. Fish be like "inflation is still rising that's a good thing..."
Bank records obtained by the House Oversight Committee investigating Hunter Biden's business dealings reveal that Rob Walker, a Biden family associate, used his company to transfer money from a Chinese energy company to Hunter Biden, James Biden, Hallie Biden, and an unknown "Biden," the panel said Thursday.
Hallie Biden, Beau Biden's widow who had a romantic relationship with Hunter Biden for a short time, received $35,000 over two transfers in 2017, according to the records. House Oversight Committee Chair James Comer, R-Ky., says Chinese firm Energy HK Ltd. wired Walker, a family Biden associate, $3 million just before those transfers.
Walker then sent hundreds of thousands of dollars to the Biden family.
Bank records obtained by the House Oversight Committee investigating Hunter Biden's business dealings reveal that Rob Walker, a Biden family associate, used his company to transfer money from a Chinese energy company to Hunter Biden, James Biden, Hallie Biden, and an unknown "Biden," the panel said Thursday.
Hallie Biden, Beau Biden's widow who had a romantic relationship with Hunter Biden for a short time, received $35,000 over two transfers in 2017, according to the records. House Oversight Committee Chair James Comer, R-Ky., says Chinese firm Energy HK Ltd. wired Walker, a family Biden associate, $3 million just before those transfers.
Walker then sent hundreds of thousands of dollars to the Biden family.