And now for something really important...SVB failure.

[Levianon17]

Originally Posted by VitaMan

Go ahead and give a discussion of how politics and banking are intertwined, and what makes it a political issue.

This is the political forum.

Go ahead and say it's Trump's fault. We all know you want to, lol.

[Why_Yes_I_Do]

Originally Posted by VitaMan

...This is the political forum.

The David Stockman article posted above does just that. The included, at no additional charge, common sense is just a bonus.

[Why_Yes_I_Do]

[VitaMan]

Did this OP ask a question he didn't know the answer to ? He is always saying, "In other words, you don't know the answer to your own question."


Originally Posted by lustylad

"Thanks man, for parroting Liz Warren's new talking point. Now can you do everyone a favor and cite the specific Dodd-Frank provision that would have prevented the collapse of SVB, had it not been relaxed?"



And the reply to answer his question was:

In 2019 the Federal Reserve compounded the pullback from Dodd-Frank by instituting new rules that eliminated liquidity requirements entirely for banks with assets under $250 billion and softened other regulations.

SVB’s deposits surged from $50 billion in 2018 to $220 billion in early 2022, it remained conveniently below the new standard that would have triggered more oversight and higher capital-adequacy requirement.

[Texas Contrarian]

I suppose that no one should really be all that surprised when a bunch of stuff starts to bust after the Fed pins short rates to the ZLB for most of a 14-year period, accompanies that with an $8+ trillion dollar balance sheet expansion by way of multiple iterations of QE, and then decides in the face of surging inflation to aggressively go "cold turkey" in a (hugely belated!) effort to "normalize" monetary policy.

And I'm afraid you ain't seen nothin' yet! According to Stephanie Pomboy, who has spoken and written a great deal on the subject, next in the hit parade may be massive pension bailouts. I don't doubt that for a minute.

https://twitter.com/spomboy/status/1637477116089442304

Note to progressives who seem fond of prattling about "trickle-down economics," referencing the widespread (but mistaken) belief that our humongous budget deficits largely arose from excessive "tax cuts for the rich."

If you want to point to any policy or set of policies that actually did redistribute wealth from the middle class to the very affluent, the place you need to look is within the the huge conference rooms of the Marriner S. Eccles Building.

[VitaMan]

Nice, but getting off track.

Demand deposits...that's all it is

[eccieuser9500]

History of the Marriner S. Eccles Building and William McChesney Martin Jr. Building

Ultimately, Paul Philippe Cret (1876-1945) submitted drawings that impressed the members of the Board of Governors. Born in France, Cret trained at the École des Beaux-Arts in Lyons and Paris before moving to Philadelphia in 1903 to teach architecture at the University of Pennsylvania. Soon, Cret started his own practice and won many important commissions for buildings across the country.

MARRINER S. ECCLES BUILDING AND FEDERAL RESERVE

[texassapper]

The whole thing will implode. The pensions will never happen, you can't give to people that which does not exist. And if you do, you simply inflate the debt away... which is exactly what is happening.

I have ammo and water... I can take whatever else I need from an unarmed liberal.

[eccieuser9500]

Originally Posted by Texas Contrarian

I suppose that no one should really be all that surprised when a bunch of stuff starts to bust after the Fed pins short rates to the ZLB for most of a 14-year period, accompanies that with an $8+ trillion dollar balance sheet expansion by way of multiple iterations of QE, and then decides in the face of surging inflation to aggressively go "cold turkey" in a (hugely belated!) effort to "normalize" monetary policy.

And I'm afraid you ain't seen nothin' yet! According to Stephanie Pomboy, who has spoken and written a great deal on the subject, next in the hit parade may be massive pension bailouts. I don't doubt that for a minute.

https://twitter.com/spomboy/status/1637477116089442304

Note to progressives who seem fond of prattling about "trickle-down economics," referencing the widespread (but mistaken) belief that our humongous budget deficits largely arose from excessive "tax cuts for the rich."

If you want to point to any policy or set of policies that actually did redistribute wealth from the middle class to the very affluent, the place you need to look is within the the huge conference rooms of the Marriner S. Eccles Building.

The Origin Of Student Debt: Reagan Adviser Feared "Educated Proletariat"

In May 1970, Reagan had shut down all 28 UC and Cal State campuses in the midst of student protests against the Vietnam War and the U.S. bombing of Cambodia. On October 29, less than a week before the election, his education adviser Roger A. Freeman spoke at a press conference to defend him.

Freeman’s remarks were reported the next day in the San Francisco Chronicle under the headline “Professor Sees Peril in Education.” According to the Chronicle article, Freeman said, “We are in danger of producing an educated proletariat. … That’s dynamite! We have to be selective on who we allow [to go to college].”

Taking Stockman: How Nixon, Reagan, Bush and their GOP Demolished the Economy

[Why_Yes_I_Do]

Originally Posted by VitaMan

He is always saying, "In other words, ..

From Merriam Webster:
in other words idiom
—used to introduce a statement that repeats what has been said in a different and usually a simpler or more exact way


In other words, you can't always dumb it down enough for some people to understand, that which is readily apparent to most people.

[VitaMan]

Perhaps perspective is needed

[Texas Contrarian]

Originally Posted by VitaMan

Nice, but getting off track.

Demand deposits...that's all it is

What in the world are you talking about? How are demand deposits "all it is?"

The crisis was precipitated and later exacerbated by the sinking of SVB's capital base after a period of rapidly rising interest rates and the resultant sharp devaluation of the bank's unhedged (or mostly unhedged) fixed-income portfolio. Obviously, this was caused by the Fed's abrupt shift in monetary policy after the long uber-accommodative, ultra-easy money period.

Rising interest rates = falling bond prices. Got it?

[VitaMan]

No panic withdrawal of bank demand deposits....no bank failure or crisis

Got it ?

[Texas Contrarian]

Originally Posted by VitaMan

No panic withdrawal of bank demand deposits....no bank failure or crisis

Got it ?

I "get it" perfectly well.

I'm done discussing this with you, since you obviously like to argue for the sake of argument, but often (as here) have demonstrated little effort to gain a nuanced understanding of the topic under discussion.

Got it?

[the_real_Barleycorn]

I was the OP and I didn't ask that question. Are you trying to hijack my thread?