Financial Institutions

[Nouseforaname]

30 minutes ago, snafu said:

See, if people don’t make a run, then there’s no real vulnerability.  Yes, banks are vulnerable from people acting like stupid, panicky sheep way too often. They’ve always been vulnerable to that.

 

 

 

And with social media, it’s even worse.  

[Crap Throwing Clavin]

3 hours ago, Nouseforaname said:

And with social media, it’s even worse.  

 

It's all Ben Kingsley's fault.

 

 

[Foxx]

4 hours ago, snafu said:

See, if people don’t make a run, then there’s no real vulnerability.  Yes, banks are vulnerable from people acting like stupid, panicky sheep way too often. They’ve always been vulnerable to that.

 

 

 

But... the vulnerability is there, has always been there and it has always been real and is inherent in the structure.

 

Two problems that underlie that vulnerability and is the basis that will never allow the overriding to change. The first is inflationary fiat. Because it is inflationary, it is fragile.

Secondly is, fractionalization. The fractionalized banking model is always going to a problem and threat to Joe and Betty Six-Pack.

 

 

 

 

 

I could go on and on with warnings from our forefathers but I'm sure you get the gist.

 

 

 

There is a solution and a way out. 

[Foxx]

3 hours ago, Nouseforaname said:

And with social media, it’s even worse.  

If your model can't survive words, there's a good chance there is something wrong with your model.

[Foxx]

QE Infinity is now real... they have opened Pandora's Box.

 

[Nouseforaname]

27 minutes ago, Foxx said:

If your model can't survive words, there's a good chance there is something wrong with your model.

It’s not words it’s “lies”.  In 2008 the bank I started my career at almost went under because there were rumors that the money market instruments they issued were backed by subprime.  It was a fabrication but the damage was done, everyone ran to the bank to cash in on their money market deposits.

 

So yeah, nothing survives without confidence. 

Edited March 19, 2023 by Nouseforaname

[Nouseforaname]

53 minutes ago, Crap Throwing Clavin said:

 

It's all Ben Kingsley's fault.

 

 

Nothing is more comical than how Hollywood sees banking. 

[Nouseforaname]

I really dislike taleb because he’s a bigger @$$h@l& than me but he’s got a point.

[Fansince88]

12 hours ago, Nouseforaname said:

It’s not words it’s “lies”.  In 2008 the bank I started my career at almost went under because there were rumors that the money market instruments they issued were backed by subprime.  It was a fabrication but the damage was done, everyone ran to the bank to cash in on their money market deposits.

 

So yeah, nothing survives without confidence. 

And your money looks like Monopoly money so that probably doesn't help.

[Foxx]

13 hours ago, Nouseforaname said:

It’s not words it’s “lies”.  In 2008 the bank I started my career at almost went under because there were rumors that the money market instruments they issued were backed by subprime.  It was a fabrication but the damage was done, everyone ran to the bank to cash in on their money market deposits.

 

So yeah, nothing survives without confidence. 

So wait... you didn't have all your customer's deposits? Only a fraction thereof?

 

I stand by my statement.

[Nouseforaname]

13 minutes ago, Foxx said:

So wait... you didn't have all your customer's deposits? Only a fraction thereof?

 

I stand by my statement.

Money market instruments earn a small amount of interest in exchange for being lent out in short term loans.

 

You even run a business? Do you have cash for payroll or are you sometimes borrowing to make payroll while your receivables come in?

 

 

[Foxx]

29 minutes ago, Nouseforaname said:

You even run a business? Do you have cash for payroll or are you sometimes borrowing to make payroll while your receivables come in?

 

 

I am debt free, my man, debt free.

[Nouseforaname]

16 minutes ago, Foxx said:

I am debt free, my man, debt free.

That wasn’t my question but congrats.

[Foxx]

5 minutes ago, Nouseforaname said:

That wasn’t my question but congrats.

Umm.. I think I did but let me break it down further for you.

 

54 minutes ago, Nouseforaname said:

You even run a business?

Small but yes.

 

21 minutes ago, Foxx said:

Do you have cash for payroll or are you sometimes borrowing to make payroll while your receivables come in?

Cash for payroll. Debt free, my man, debt free.

 

If you haven't guessed by now... I don't trust the system.

[Foxx]

On 3/15/2023 at 12:30 PM, Foxx said:

Just musing here. If your sensibilities are easily offended, you might want to just move along..

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Good possibility that by Monday morning, Credit Suisse will be nationalized.

If so, God help us.

Which would be better in the long run, a complete collapse of the world banking system or a slow but steady quick decline?

Got CBDC's?

Complete control?

 

It is now being reported that full or partial nationalization of Credit Suisse is being considered by the Swiss Central Bank. With just hours to go before the Asian markets open for trading, they will have to make that decision soon.

The reason the Swiss CB is considering the takeover at this point is because Credit Suisse is balking at UB's proposal for a take-under. If it happens, say goodbye to the equity and hello to a bond holders bail-in, otherwise known as, a haircut..

[Ann]

11 minutes ago, Foxx said:

It is now being reported that full or partial nationalization of Credit Suisse is being considered by the Swiss Central Bank. With just hours to go before the Asian markets open for trading, they will have to make that decision soon.

The reason the Swiss CB is considering the takeover at this point is because Credit Suisse is balking at UB's proposal for a take-under. If it happens, say goodbye to the equity and hello to a bond holders bail-in, otherwise known as, a haircut..

They wanted a deal where they paid 25 cents a share, and if their credit default swaps were to increase more than 100 basis points, they could cancel the deal. 

Sounds like UBS really didn't want the deal. 

[Nouseforaname]

39 minutes ago, Ann said:

They wanted a deal where they paid 25 cents a share, and if their credit default swaps were to increase more than 100 basis points, they could cancel the deal. 

Sounds like UBS really didn't want the deal. 

Mergers are tricky operation wise.

[Foxx]

41 minutes ago, Ann said:

They wanted a deal where they paid 25 cents a share, and if their credit default swaps were to increase more than 100 basis points, they could cancel the deal. 

Sounds like UBS really didn't want the deal. 

This coming week, very possibly, could be quite eventful.

The Swiss Central Bank promise of $54 bn, while it set the stock price in CS to rise at the outset, did nothing to stop the exodus of capital last week.

[Nouseforaname]

It’s done. Ubs has agreed to purchase crédit suisse.

[Foxx]

16 minutes ago, Nouseforaname said:

It’s done. Ubs has agreed to purchase crédit suisse.

I'd say it's more like, Credit Suisse agreed to be purchased after UBS doubled their initial offer of $1bn.