Economist Warns Tucker Why More Banks Could ‘Go Belly Up’
By Fox News
MacroMavens CEO Stephanie Pomboy reacts to reports Silicon Valley Bank had no risk management chief for nine months.
Here’s what others had to say:
When are we going to get rid of this horrible and miserable administration?
Janet Yellen assured us that this is not a bailout. She also assured us last year that we were not in a recession.
Several of the biggest market experts have been voicing their opinions on exactly how awful they think the next downturn would be, and how far equities may have to go, as recession draws closer and inflation continues well above the Fed’s 2% objective. I’m trying to build a portfolio of at least $850k by the time I’m 60, therefore I need suggestions on what investments to make.
Every day we have a new problem. It’s the new normal. At first we thought it was a crisis, now we know it’s a new normal and we have to adapt. this year will be a year of severe economic pain all over the nation.. what steps can we take to generate more income during quantitative adjustment?I can’t afford my hard-earned $180,000 savings to turn to dust.
This reminds me of when Bush gave the bailout to the automakers. Stop giving money to failed companies!
Every time the banks and stocks fall, the bankers get bailed out, BUT not the ones who lose their investments for retirements..Ours was lost in last bank mess, or was it the one before that ?
This time the tiny bit we had in a conversative group, we pulled it out.
We have all the ingredients for an economic depression: Inflation, supply chain issues, a devalued dollar, high interest rates, mismanaged banks, mismanaged government, layoffs, a real estate market that’s about to collapse, and a country full of more ons.
I am a loaf of Bread
Let the bank companies learn to manage their budgets and not rely on the government to bail them, like with the bank’s failures in 2008.
All I know is that $250K is more money I will ever see in my lifetime, as a lower class individual (which are about 30% of Americans). The circumstances in which people lost millions of dollars is terrible, but I can’t imagine these people hurting for money. And they probably have the means to get a lot of that money back.
“Why did they do nothing? Because they knew all along that when this day came, this bailout would be there for them…they’ve been taught there’s no consequences for mismanagement.”–Stephanie Pomboy
I have nothing to add.
The bank that is considered must vulnerable is First Republic. The stock is down 70% or so. The Fed increased their unused borrowing capacity by $10 billion on Sunday, so they have $70 billion in unused loan capacity. It would take an enormous run to bring them down. They focus on upper income clients in San Francisco, Los Angeles and NY, and offer “Wealth management” services. Their loan portfolio is mostly single family homes. Interesting times.
The Austrian economists have been saying for over 100 years that this is what happens when government goes on an inflationary binge with “funny money” fiat currency.