Financial Institutions

[Foxx]

Nope, nothing crypto here...

 

[Foxx]

It's a massive earthquake and the holes in the ground are going to be deep.

 

 

[Foxx]

17 hours ago, Foxx said:

 

What did he know, and when did he know it?

 

Moar.

 

[Foxx]

Here's your crypto connection.

 

[Foxx]

Swalwell to the rescue.

 

[Foxx]

7 hours ago, Foxx said:

The question is, is that contagion contained and limited.

A pretty good article on the overall situation with SVB.

 

From Reuters:

SVB is largest bank failure since 2008 financial crisis

Quote

...The genesis of SVB's collapse lies in a rising interest rate environment. As higher interest rates caused the market for initial public offerings to shut down for many startups and made private fundraising more costly, some SVB clients started pulling money out.

 

To fund the redemptions, SVB sold a $21 billion bond portfolio consisting mostly of U.S. Treasuries on Wednesday, and said it would sell $2.25 billion in common equity and preferred convertible stock to fill its funding hole.

 

By Friday, the collapsing stock price had made its capital raise untenable and sources said the bank tried to look at other options, including a sale, until regulators stepped in and shut the bank down. ...

I think they lost something like $1.8bn on those treasury sales.

 

And then there is this in the article...

Quote

... 

Some analysts forecast more pain for the sector as the episode spread concern about hidden risks in the banking sector and its vulnerability to the rising cost of money.

 

"There could be a bloodbath next week as...short sellers are out there and they are going to attack every single bank, especially the smaller ones," said Christopher Whalen, chairman of Whalen Global Advisors. ...

 

Let's hope cooler heads prevail.

[Foxx]

14 hours ago, Crap Throwing Clavin said:

I'm looking at buying a position in JP Morgan or Bank of America right now, as SVP's collapse is no reflection on them, but they've been hammered for it nonetheless.  

 

Buying opportunity or something else?

 

[Foxx]

1.26%

 

[Nouseforaname]

23 minutes ago, Foxx said:

1.26%

 

The FDIC is there as a guarantee and it’s based on the faith and credit of the government that backs it. If ever it runs out of cash, the government will provide liquidity until the mess clears.

 

 

[Ann]

Yikes
 

 

[B-Man]

4 hours ago, Foxx said:

A pretty good article on the overall situation with SVB.

 

From Reuters:

SVB is largest bank failure since 2008 financial crisis

I think they lost something like $1.8bn on those treasury sales.

 

And then there is this in the article...

 

Let's hope cooler heads prevail.

 

 

 

 

[Foxx]

5 hours ago, Foxx said:

Here's your crypto connection.

 

 

Custodial Services for you...

 

Coinbase in on it as well.

 

[Foxx]

Not really surprising.

 

Emergency meeting.

 

Closed Meeting

 

[Crap Throwing Clavin]

10 hours ago, Foxx said:

 

Buying opportunity or something else?

 

 

Buying opportunity.  That's what a sudden reduction in stock value by program trading without a corresponding underlying fundamental devaluation is.  

 

 

[Nouseforaname]

31 minutes ago, Crap Throwing Clavin said:

 

Buying opportunity.  That's what a sudden reduction in stock value by program trading without a corresponding underlying fundamental devaluation is.  

 

 

Yep and it’s why trading on margin is not a good idea, because the market can stay irrational longer than you can stay solvent.

[Foxx]

43 minutes ago, Crap Throwing Clavin said:

 

Buying opportunity.  That's what a sudden reduction in stock value by program trading without a corresponding underlying fundamental devaluation is.  

 

 

Except that, maybe, the derivatives market is exponentially larger today than it was in '08.

[Crap Throwing Clavin]

1 hour ago, Nouseforaname said:

Yep and it’s why trading on margin is not a good idea, because the market can stay irrational longer than you can stay solvent.

 

I am 90% cash right now.  And managed about 15% on last month's Tesla run-up.  

 

I'll be fine.  

[Nouseforaname]

19 minutes ago, Crap Throwing Clavin said:

 

I am 90% cash right now.  And managed about 15% on last month's Tesla run-up.  

 

I'll be fine.  

We’re all cheering for you.

[Nouseforaname]

2 hours ago, Foxx said:

Except that, maybe, the derivatives market is exponentially larger today than it was in '08.

It is but it is also much more regulated. 

[Foxx]

3 hours ago, Nouseforaname said:

It is but it is also much more regulated. 

Well and fine. However, there are always going to be unanticipated pitfalls in a chaotic environment.