Run on US bank

[GoldDiggerDave]

9 hours ago, HerefordBullyun said:

Watch from the timestamp JFK's nephew grill the SVB Silvergate First republic CEO's today in congress...

Popcorn at the ready

 

The bigger question out of this bully, if the senator pulled him on if interest rates go up then bond go down.......he should have said "well ask yourself the question why the FED keeps on putting the rates up"?    The FED putting the rates up is a controlled demolition of the banking system and they said they will not save everyone , so they can increase rates bankrupt banks sell off the cheap one to their mates and only bill out the one they know that will toe the line.  

Putting up interest rates is nothing more than an aggressive forced buyout of the competition,  the sad thing here is the normal man and woman who has loans and mortgages  with these banks, as no doubt they will be locked into the bank at higher rates.   

The US is going to end up with 4-5 banks that own 95%+ of the population, when that happens they can very easily manipulate everyone though debt, just like we in this country are being manipulated by our energy bills by the main 3 suppliers that carved up the energy market of the last 18 months.......Are you surprised none of this was pulled by any monopolies commission?

What next?     Supermarkets,  food retailers and distribution,   petrol stations,  public transport?     

We are all being kettled into ever confining spaces of ultimate  control.  

   

 

 

 

 

[HerefordBullyun]

3 minutes ago, GoldDiggerDave said:

The bigger question out of this bully, if the senator pulled him on if interest rates go up then bond go down.......he should have said "well ask yourself the question why the FED keeps on putting the rates up"?    The FED putting the rates up is a controlled demolition of the banking system and they said they will not save everyone , so they can increase rates bankrupt banks sell off the cheap one to their mates and only bill out the one they know that will toe the line.  

Putting up interest rates is nothing more than an aggressive forced buyout of the competition,  the sad thing here is the normal man and woman who has loans and mortgages  with these banks, as no doubt they will be locked into the bank at higher rates.   

The US is going to end up with 4-5 banks that own 95%+ of the population, when that happens they can very easily manipulate everyone though debt, just like we in this country are being manipulated by our energy bills by the main 3 suppliers that carved up the energy market of the last 18 months.......Are you surprised none of this was pulled by any monopolies commission?

What next?     Supermarkets,  food retailers and distribution,   petrol stations,  public transport?     

We are all being kettled into ever confining spaces of ultimate  control.  

   

 

 

 

 

Your right BUT hes not there to question/inquire on the FEDs policy, and he wouldn't as he knows what happened to his uncle, who tried to reinstate the gold standard. He's fully astute to the shenanigans that goes on, so he cant get political on that as that's not what the inquiry is about. He knows that its a privately owned institution by the banking cartel. I'm sure he's listened to his uncles speech about secrecy being repugnant. He's there to haul the Sillvergate and SVB exec over their arris over their coals.

They would of known way before the when FED were going raise rates, many banks do, because there will be a projected MOU which way the FED is going to raise or lower rates. The CEOs have just played the ignorance cards to make thier bonuses, which Kennedy nailed on point.

Banks will do anything to make money regardless, of how unstable thier hedge risk is. 2008 taught us that and many still live on the edge. The financial business is the most cut-throat of the lot, as when you follow the money, it goes to point that absolute greed becomes an addiction. The time he can get political is when next crisis happens, like when Ron Paul, hauled Alan Greenspan and Ben Bernanke over coals.

These currently will be classed as isolated incidents, only when the debt contagion spreads, I can guarantee, theres plenty of other CEOs of banks shatting themselves now, spinning the roulette wheel - PacWest for example....  The one thing I found interesting is this https://www.zerohedge.com/markets/michael-burry-didnt-sell-instead-he-loaded-regional-banks-here-are-all-big-shorts-latest Burry predicted the big short last time sold loads of toxic debt to Deutchse Bank and other banks including CDOs on properties then precluded to short what he sold, which proves how cut throat the game is.

But Burry now is going long on banks, that tells me this, the Powell Pivot will happen on interest rates and the US will turn negative yeild curve just like the bank of Japan in the lost decades, and many will be bailed again. Wiki article here https://en.wikipedia.org/wiki/Lost_Decades but the difference is Japan is a land of conformity, that's their mindset, remember kamikaze pilots? they will die for thier country regardless, but the US wont have it, people will be on the streets with guns and rioting and if it spreads to the UK it will be the same, less the guns....

People in the west are far too selfish, why? because theyve been conditioned to believe it for years, through the guise of TV, social media and marketing and  propaganda, that makes them believe their government will save them. but we all know the government are mere puppets and dance to the tune of the elites, why? because they want a slice of their pie!!!  

 

[HerefordBullyun]

They still havent agreed to the debt ceiling raise yet and money could run out on 01 June - I mean 7 days.... what sort of lunacy is this?

 

[HonestMoneyGoldSilver]

I love Senator John Kennedy, he is not a bully. He is a straight-talking American Patriot

As for the discussion about rates rising and controlled demolition, that is not how it works. Every single bank in the world, except for SVB, has interest-rate and currency-risk hedges. The fact that SVB didn't hedge is not just incompetent or criminally negligent, it is an outlier. It is the most standard practice to hedge these things for a bank, it is a standard as a mortgage holder having insurance. Not having insurance is a violation of your mortgage agreement and not having hedges running a bank is equally as moronic and a violation of fiduciary duty to shareholders.

Consider how stupid this is - interest rates are at an historic low. You decide to lock up your funds for 10-15 years with an average yield of 1.74%. You have made an enormous bet that interest rates won't change over that period. I could discuss exactly why SVB made this decision but I'll defer to the reference below. Interest rates could only ever go in one direction - UP - and when they did go up, under the structure used by SVB they were always going to be toast

The CEO of SVB said, "we did have hedges and it was controlled by the asset-liability committee" .... "there were hedges that were put in place"

LIES

SVB was 100% naked with zero hedges and we can prove it from their own filings!!

SVB didn't have a head of risk management for 9 of the 12 months leading up to their collapse. As the next Senator after Kennedy said, SVB violated their own internal protocols on interest-rate risk breaches and liquidity shortfalls on several occasions. That's not a huge surprise when they had no head of risk management!

Here is Patrick Boyle, a former Finance Professor and a current hedge fund manager discussing SVB. He lays it out perfectly. This is the best video about SVB on the internet:

 

 

 

[GoldDiggerDave]

36 minutes ago, HerefordBullyun said:

They still havent agreed to the debt ceiling raise yet and money could run out on 01 June - I mean 7 days.... what sort of lunacy is this?

 

It’s okay Bully they will just change the definition of what debt is……just like fuel poverty they changed that sharpish when over 50% of the population would have been classified as being in poverty. 
 

Debt now really makes no difference as anyone born in the last 15-20 years will be living in modern day serfdom. 
 

 

[HerefordBullyun]

9 minutes ago, GoldDiggerDave said:

It’s okay Bully they will just change the definition of what debt is……just like fuel poverty they changed that sharpish when over 50% of the population would have been classified as being in poverty. 
 

Debt now really makes no difference as anyone born in the last 15-20 years will be living in modern day serfdom. 
 

 

They will riase it they have no choice. The Japanification of the US economy is coming... Negative yields are inbound.

Negative interest rates will happen - make no illusion they will be buying up bonds and mortgages just like BoJ has done - they own 90% of the stockmarket now....

Lunacy!

[ArgentSmith]

32 minutes ago, GoldDiggerDave said:

Debt now really makes no difference as anyone born in the last 15-20 years will be living in modern day serfdom. 

the state will provide for "those most in need*" at the expense of those slightly less in need*. Until... we are all most in need*.

*need = deep s***

 

Edited May 24, 2023 by ArgentSmith

[HerefordBullyun]

People need to be looking a bit closer to home also

https://www.zerohedge.com/personal-finance/withdrawing-your-own-cash-natwest-bank-wants-know-why-and-see-proof

[GoldDiggerDave]

48 minutes ago, HerefordBullyun said:

People need to be looking a bit closer to home also

https://www.zerohedge.com/personal-finance/withdrawing-your-own-cash-natwest-bank-wants-know-why-and-see-proof

this has been the normal banking practice for UK retail banks for the last 18 months.  
 

It’s all part of the same agenda to force everyone into a digital system.    I’m amazed a bank has not offered a “cash-less account” yet with better rates etc for not withdrawing or depositing cash.  
 

Even the post office now will only take £100 per month in cash deposits, the scary point will come when petrol stations and supermarkets will not accept cash. 
 

You really can’t travel now using cash if you think about it, many buses wont take cash, train now you have to buy before you get on the train or face £100 fine and only few stations have ticket offices so again the majority are forced to use electric transactions,  it’s coming at us at lightning speed and  we are all blindingly adopting a cashless system. 

[SiCole]

11 minutes ago, GoldDiggerDave said:

It’s all part of the same agenda to force everyone into a digital system.    I’m amazed a bank has not offered a “cash-less account” yet with better rates etc for not withdrawing or depositing cash.  
 

That account has been available for the last 9 years minimum in business banking form. e-business account is digital only unless you want a 25% fee for withdrawing cash.

[GoldDiggerDave]

Just now, SiCole said:

That account has been available for the last 9 years minimum in business banking form. e-business account is digital only unless you want a 25% fee for withdrawing cash.

Yes I was thinking of  a retail current account, it’s  all heading that way. I can see a massive employer just paying staff in a CBDC in a few years time, it’s like going back 150 years when the factory workers just got paid in tokens. 

[HerefordBullyun]

1 minute ago, GoldDiggerDave said:

Yes I was thinking of  a retail current account, it’s  all heading that way. I can see a massive employer just paying staff in a CBDC in a few years time, it’s like going back 150 years when the factory workers just got paid in tokens. 

Literally shatcoins.. Literally!!

[Zhorro]

38 minutes ago, GoldDiggerDave said:

this has been the normal banking practice for UK retail banks for the last 18 months.  
 

It’s all part of the same agenda to force everyone into a digital system.    I’m amazed a bank has not offered a “cash-less account” yet with better rates etc for not withdrawing or depositing cash.  
 

Even the post office now will only take £100 per month in cash deposits, the scary point will come when petrol stations and supermarkets will not accept cash. 
 

You really can’t travel now using cash if you think about it, many buses wont take cash, train now you have to buy before you get on the train or face £100 fine and only few stations have ticket offices so again the majority are forced to use electric transactions,  it’s coming at us at lightning speed and  we are all blindingly adopting a cashless system. 

The reason i try to minimise my use of my cards is as an anti-fraud measure.  How often do you hear that a person's card details have been duplicated as a result of a particular transaction?  In terms of security many people do not have a clue about potential security threats.

[GoldDiggerDave]

37 minutes ago, Zhorro said:

The reason i try to minimise my use of my cards is as an anti-fraud measure.  How often do you hear that a person's card details have been duplicated as a result of a particular transaction?  In terms of security many people do not have a clue about potential security threats.

IT’s laughable as we already have the best anti fraud medium already it’s called cash!  How many times has everyone put their details into a companies websites…..and I can guarantee you they are not a secure as they should be, there’s more business being hit with random and mal ware than you would think.  

[HerefordBullyun]

This is a mind bending thread - but very interesting nonetheless - lets go down the theory rabbit hole shall we?

https://threadreaderapp.com/thread/1661839309996195840.html 

Id be interested to hear @HonestMoneyGoldSilver opinion on this

[HonestMoneyGoldSilver]

On 25/05/2023 at 09:54, GoldDiggerDave said:

IT’s laughable as we already have the best anti fraud medium already it’s called cash!  How many times has everyone put their details into a companies websites…..and I can guarantee you they are not a secure as they should be, there’s more business being hit with random and mal ware than you would think.  

Davemundo talking some sense here. Even cyber security experts and alphabet agents get spear-phished. Sometimes attack vectors are so sophisticated it's predator and prey. As for websites and businesses, yes 100%. Folks have given their life story to bookies, online casinos, crypto exchanges, mortgage brokers, auction houses, trading platforms, social media, telecomms and energy companies. Many go out of business or get absorbed by another company and security takes a back seat. Then countless others have internal fraud, get hacked or are forced to hand over details to HMRC and LE. I can say with a high degree of confidence that if I wanted your details I could purchase them on the darknet today. So many large companies have been hacked with hundreds of millions of data records each. The incentive for a staff member to accidentally on purpose walk out of the building with an SSD card is huge and if that staff member is in charge of security, how do you stop it? You can't! Ransom and malware hits so many businesses who pay up and nobody finds out for years, even though it's a legal requirement for them to disclose any data breaches. Depending on your line of business declaring a data leak could wipe billions off your market cap. 

On 25/05/2023 at 08:46, GoldDiggerDave said:

Yes I was thinking of  a retail current account, it’s  all heading that way. I can see a massive employer just paying staff in a CBDC in a few years time, it’s like going back 150 years when the factory workers just got paid in tokens. 

Yep, and you can only spend those tokens in the company shop and buy pre-approved company products at inflated prices

[HonestMoneyGoldSilver]

4 hours ago, HerefordBullyun said:

This is a mind bending thread - but very interesting nonetheless - lets go down the theory rabbit hole shall we?

https://threadreaderapp.com/thread/1661839309996195840.html 

Id be interested to hear @HonestMoneyGoldSilver opinion on this

I'll read and get back to you later, my to-do list just went crazy, as always, on a Friday afternoon 😭

[HonestMoneyGoldSilver]

Very interesting article and my spider senses are tingling more than your ballonknot

TL:DR - The Fed/Treasury/Democrats have engaged in an orgy of market manipulation and QT-QE counterbalancing that is going to blow up in our faces. The new tools of the Treasury will enable the Fed to save face by not pivoting, i.e. there will be further rate hikes. This will result in downwards pressure on precious metals and continue their quest to eradicate the middle classes via excessive debt burdens and recession/depression

I think you said it best my friend .... "Japanification"

The most worrying aspect is the "political alignment" of the Fed and Treasury with one counterbalancing the other when required (Fed QE with Treasury QT and vice-versa) or both pushing (QE) or pulling (QT) as deemed necessary. Lots of people argue the Fed is currently not politically separate from the POTUS, Congress and Treasury but it really should be and by law it is.

The Fed is independent in the sense that monetary policy and related decisions are made autonomously and are not subject to approval by the federal government

Why Is the Federal Reserve Independent? (investopedia.com)

It's a terrifying prospect to have both the Fed and Treasury acting as the financial arm of US political parties, especially when the Democrats already have a firm grip over the banking system/Fed and NYC in general.

I encourage everyone to check out job listings from Citigroup (Citibank/Citi), Barclays, Goldman Sachs, etc, in the UK and see if anything stands out to you. See if you can work out their agenda and where it's coming from. I see the Democrats as the single most dangerous entity on the planet, more dangerous than the CCP from the POV of the Anglosphere and Europe. If the Democrats control the Fed, Treasury, POTUS and big tech simultaneously, wow, there would be fewer/no checks and balances on the most important financial markets and technologies on the planet

The Fed and Treasury are going to act in concert to "stabilize" the sovereign debt market, mirroring the Bank of Japan in many respects. The BoJ currently buys 70%+ of newly listed bonds, owns 97% of recent 368th series of 10-year bonds and owns 49.6% of the total Japanese bond market. There is no longer a free or natural market for Japanese bonds, the bonds are issued by the right arm of government and bought by the left arm. The article suggests the Treasury is going to act in a similar manner - using buybacks to remove longer-duration risk (10-year + bonds) from the market and replacing them with shorter-maturity bonds.

The BoJ also owns 20%+ of all Japanese corporate paper and 7%+ of Japanese corporate bonds. The actions of the BoJ are designed not just to finance government but to actively cause inflation, something they've failed to achieve for 30 years. The article alludes to the fact the Treasury would engage in these buybacks in order to "boost liquidity" and "reduce volatility", but how insane could inflation become if the Treasury/Fed miscalculate?

The USA is not Japan, there is hard-baked inflation in the US economy due to an increasing population. US Treasuries and USD are Tier-1 international assets - every country on the planet owns some US bonds and/or USD. That's very different from Japan. While some international investors do buy Japanese government and corporate securities, the majority are held by the BoJ and by Japanese citizens. They have a synergy. Japanese citizens tend to save too much and are too sensible, they aren't mindless consumer drones taking excessive risks like the average American citizen, and by extension the US non-government financial system. Using "financial alchemy" (artificial stimulus and market manipulation) to boost liquidity and reduce volatility (risk) will lead to unforeseen consequences in the US and wider western world. 

The entire Fed/Treasury intervention cycle is suboptimal. If the government engaged in sensible budgeting and balanced the books, as is demanded from ordinary citizens and SMEs, then none of it would be necessary. Their plan is to allow certain entities like central government (Inflation Reduction Act, aka Inflation Causing Act), along with select financial and non-financial institutions, to run a perpetual deficit with immunity. The Fed/Treasury by law are not allowed to engage in corporate asset purchases but of course they did exactly that in 2008-2020 when purchasing $50-70 billion/month of "toxic assets" from financial institutions at full face value. There is a strong undertone that the Treasury/Fed are going to engage in non-financial market manipulation, allowing those with (Democratic) political connections to raise unlimited finance at below market rates:

The Federal Reserve has begun buying corporate bonds as part of the CARES Act. However, there is nothing in the law to suggest that the Fed is allowed to make purchases of anything, let alone junk bonds and junk bond ETFs. In fact, the current law says that the Fed is not allowed to encourage speculation in stocks and corporate bonds by accepting either as collateral 

Most people can see that policies such as these will have consequences, the manifestations of which are going to appear in one way only - an enormous tax on the ordinary citizen (inflation) and the destruction of middle class wealth

The USA and Fed/Treasury, whether we like it or not, lead the western world and call the tune of global financial and commodity markets. The BRICS won't change that. Let's bring it back to the UK though. What is the UK Treasury (Chancellor of the Exchequer, Jeremy (C)Hunt) and the UK central bank (BoE) doing? Are they working together too, are the working with the Fed and the US Treasury, and if so, what is their end game? 

When asked whether he was comfortable with the central bank doing whatever was needed to bring down inflation, even if that could cause a recession, Jeremy Hunt said: “Yes, because in the end, inflation is a source of instability. And if we want to have prosperity, to grow the economy, to reduce the risk of recession, we have to support the Bank of England in the difficult decisions that they take.”

It's now looking increasingly likely the BoE is going to enact at least four more rate hikes and bring us to 5.5-5.75%, they may even continue and mirror the projected peak Fed rate of 6%+. The Chief Economist of the BoE (Huw Pill) and other economists are predicting rates, "of at least 6%", before the BoE pivots. The UK economy simply cannot handle those rates. British people are different to continental Europeans or Americans in that we have a greater % of our wealth and spending power tied up in real estate. As a group, the ordinary British citizen is more deeply influenced by rate hikes and changes in mortgage terms than the average European or American. If the Base Rate really does go to 5.5%, which seems quite likely to me, sadly, or if it goes to 6%+, that will have a profound effect on our economy. We still haven't felt the true effects of the recent rate hikes as these effects are lagged by 3-12 months, it's not like the BoE hikes and inflation immediately goes down or a recession immediately hits. It's more like internal bleeding, a slow, drawn-out affair that may appear harmless at first but once it progresses past a certain threshold, the outcome is inevitable. That's what is happening to us right now. In order to contain inflation the central powers are bleeding us dry. The average person in the UK will have their monthly mortgage liabilities roughly doubled from 2020 levels. That means no more fancy restaurants, no new car, no foreign holiday, no home improvements, no new phone, laptop, cancelling the Arsenal Season Ticket and going to the foodbank instead for many people. Still shocks me there are more foodbanks in the UK than McDonald's restaurants. 

Somewhat predictably my response to the article is almost as long as the article itself but the implications are enormous. While they bleed us dry they are going to take our blood and infuse it into the politically obedient, the mega-corps, those with friends in high places. No corporation that is close to government or deemed important will be allowed to fail, they will get unlimited loans at 0% interest just like during the height of the crisis in 2008. When the corporate or financial world experience liquidity issues due to this impending recession/depression, the central authorities will conspire to "boost liquidity" and "lower volatility". Meanwhile if the average citizen experiences a liquidity crisis and can't pay their mortgage, they will be foreclosed. The clear end goal is centralised power, an ever-greater push to a two-class system - the aristocrat and the peasant. The middle class is a dying breed and these recent actions by the Fed, US Treasury, UK Treasury and BoE will only accelerate that trend. We can be sure our Continental friends will follow suit and the ECB has been saying in recent months that they require a series of further rate hikes. 

Anyway, the whole thing is a giant doom cycle that makes me very grateful I don't have a mortgage and that I own precious metals. 

**The first time I wrote this response I fat-fingered the keyboard and lost it. I haven't seen any tatas in 3 days, I hope you appreciate the sacrifices I made 😂

Just while I'm writing essays, I believe this is one of the most important finance papers ever written. This study, along with numerous similar works, proves that the single most important factor to corporate profits globally is access to central government. This actions of the Fed/BoE and Treasuries are further entrenching this corrupt and crony advantage:

Lobbying and Taxes by Brian Kelleher Richter, Krislert Samphantharak, Jeffrey F. Timmons :: SSRN

[HerefordBullyun]

wow just wow

 

[JohnA1]

rounding error..😄