Stock market on verge of major collapse
- Thread starter MichiganHerd
- Start date
You get the feeling we are right on the edge of the perfect storm? Social unrest, conflicts with our main adversaries, bank failures and stock market collapse.
@big_country90
I need a status report on Truist. I feel good about them typically, they’re very conservative on reserves as I recall.
I need a status report on Truist. I feel good about them typically, they’re very conservative on reserves as I recall.
We never really loosen our belt, so we never really have to tighten it. Generally speaking, any downturn of our stock will just be a result of an industry trend.
Financial performance is solid.
Well they are no longer receiving money from me every month so they may take a little bit of a hit.
2nd Largest Bank Failure in US History took place today in California. Silicon Valley Bank, the 16th Largest in USA.
We are teetering on a bad run of things. We are starting to see it at work and we are usually on the front end of down turns and recoveries. It is slowly tightening up and this may accelerate things.
We are teetering on a bad run of things. We are starting to see it at work and we are usually on the front end of down turns and recoveries. It is slowly tightening up and this may accelerate things.
As you know, the bigger problem we have this time around, is that this administration will make things worse than they already are. This is truly the worst Presidency in the history of the United States of America.
It's going to get worse.
I have never seen so many incompetent people in one Administration. The Mush Admin is full of icompetent people at all levels. Some of these high level staffers are complete morons that I wouldn't hire to work at fruit stand.
We have a better group working out back in our packaging facility, and none of them can even speak English.
Didn't you just practically shut down your subprime auto company including laying off almost all 100+ of your sales team? Quite "solid."
There is a whole generation of suits and “risk management “ people that have never had to make decisions or perform in a world with non zero interest rates. Everyone is a genius when money is free.
If SVB gets “bailed out” it better be to the depositors only. Share holders and execs shouldn’t be bailed out here.
If SVB gets “bailed out” it better be to the depositors only. Share holders and execs shouldn’t be bailed out here.
Like I said a confluence of policy errors.
IMO, banks and financial institutions are sitting on $$Trillions of unrealized treasury losses due to the meltdown in that market. Unfortunately, those unrealized losses...become realized when those assets need sold to fund account withdrawals (for whatever the reason). Liquidity goes poof. Appears this was the case with SVB.
If SVB isn't bought this weekend by another bank or the Fed doesn't backstop (what they have essentially caused), another potential financial crisis begins....
IMO, banks and financial institutions are sitting on $$Trillions of unrealized treasury losses due to the meltdown in that market. Unfortunately, those unrealized losses...become realized when those assets need sold to fund account withdrawals (for whatever the reason). Liquidity goes poof. Appears this was the case with SVB.
If SVB isn't bought this weekend by another bank or the Fed doesn't backstop (what they have essentially caused), another potential financial crisis begins....
10b5 plans have automatic sales or adjustments during the 3rd month every quarter. 30% of your holdings is a big number to dump though.
Ok I’ll stop shitposting but I laughed
Seems like they had a massive amount in 10 year mortgage backed securities.
Why something so illiquid? I know a year back you had no options really for any “safe” parking of assets (trust me I looked hard for our corporate defined benefit cash balance plan) but a 10 year lock up at like 1.5% doesn’t seem like a good option.
With that said, I’m far from a banker, so maybe this is normal-ish?
I don't know about all that, but I do know BC quit giving away free toasters with a new loan. Tightwad.
SVB was a completely viable banking institution, just days ago. This should be troubling to everyone.
I wish I could find it, but I saw a chart with some metric comparing a huge number of banks …
And SVB and a couple others were big outliers . Gave me hope that this isn’t a widespread phenomenon.
Can’t remember the metric but SVB was at like 16% and Truist was at 1%. JP Morgan, other mega banks like at 1-2%.
No doubt SVB has huge ties to the tech economy that has seen it's own implosion since 2022. I'm sure their deposit base has taken a big hit. Combine that with it's reduced investment income (bond market downturn) and you have a toxic cocktail.
Wouldn't be surprised to see other, smaller regional banks in California and other exodus states see liquidity issues as their depositors begin to move their accounts to other locales where they now live too.
been listening to some Twitter spaces discussing this. So clearly im an expert.
I think risk mitigation at SVB was a disaster. Long term locked up very low interest securities is a disaster. Especially when your customer base is so heavily weighted in one sector.
I think vast majority of their deposits /depositors will be fine, it will just take some some. Execs should at minimum be investigated on their recent stock sales. See how much was automatic and if the recent sale was outside of their norm.
Early stage tech start ups are going to be in trouble though, both with payroll and with getting funding in ear term. However, if there is a market out there for private equity lending they’ll get funding….but fantasy land super low interest rate world is gone. Not gonna get funding for every project like past few years.
I think risk mitigation at SVB was a disaster. Long term locked up very low interest securities is a disaster. Especially when your customer base is so heavily weighted in one sector.
I think vast majority of their deposits /depositors will be fine, it will just take some some. Execs should at minimum be investigated on their recent stock sales. See how much was automatic and if the recent sale was outside of their norm.
Early stage tech start ups are going to be in trouble though, both with payroll and with getting funding in ear term. However, if there is a market out there for private equity lending they’ll get funding….but fantasy land super low interest rate world is gone. Not gonna get funding for every project like past few years.
Jerome Powell is the reason svb had no cash on hand because of Covid but we are to believe everything he tells us about interest rates and the the economy
For every day depositors, what is the limit that the government insures deposits? Is there a set amount or does it vary from bank to bank?
$250k
You can imagine though a tech company with even under 30 employees would need more than that to make payroll.
Why would I GOOGLE when I have 20 Wizards of Wall St right here at my beck and call? 😁
We are entering a dangerous time.
1)potential financial crisis
2)near Peter threats globally
3)pressure on our administration to release covid data
4)2024 election
Hang on
1)potential financial crisis
2)near Peter threats globally
3)pressure on our administration to release covid data
4)2024 election
Hang on
