THREE MORE BANKS - STOCK TRADES HALTED - PLUNGING

[CHenry]

Many of these banks invested heavily in Govt Binds, which at the time were paying 1.5-2%.

That seemed like a sweet deal, when interest rates were low, and they could pay passbook accounts .1%.

Then the Fed started raising rates, CDs went 4.5%, but these banks were trapped in the Govt bonds - couldn't (still can't) sell them.

Earning 2% and paying 4.5% doesn'last long...

No, these smaller banks were over leveraged and when Biden raised the limit they must control on hand, over night, they scrambled to catch up but couldnt.
It's simple Econ 101.
Has nothing to do with Bonds.
And yes, it was smaller banks. JP Morgan wasnt effected was it? They were not over leveraged.
Same thing exactly that happened to Chesapeake.
Exactly the same.

 

[CHenry]

Yes banks must have x amount on hand, in relation to what they have loaned, so they can handle a run. That is why banks are paying 5% and more on CD's, When they hit that x amount, they stop paying good interest on deposits. Big banks don't have to pay as much interest because of name recognition, smaller banks have a lower margin of profit, and are more likely to fail. Now Biden has introduced new rules on lending, May 1, borrowers with good credit pay higher fees than borrowers with bad credit. So unlike 2008 where the government was on the hook for bad loans, now if you have good credit, you are on the hook for bad and risky loans. Big banks are more likely to get a bailout, like svb, than small banks, so depositors go to the big banks and earn less, and small banks get even more pressure. It's complete manipulation by the government. We are moving towards socialism at a very fast pace, and about half the population is OK with that. We are screwed, and we are failing.

That pretty much exactly what I said, in fewer words.
You a banker???

 

[CHenry]

FAocheck eBay, or any coin dealer. There all over eBay. You haven’t seen one (pre 1964) because there not in general circulation. They have a silver value. Unlike the coins now (are worth nothing) not even the value of the metal they are made of. Silver and gold are going up and dollar purchasing power going down. When the dollar fails, which would you prefer? Also available are 1oz. Silver coin bullion. Gold is a store of value if you have “excess“Dollars . The value of almost all assets will go down with the dollar, but silver and gold have been the original “money” since the Romans. All else is just currency and everyone in history has failed on average every 40-50 hrs. We’re over due, and it’s happening. If you own gold and silver bullion and If nothing happens, then you have made money because gold and silver are going up (have been since 2008) but purchasing power of the dollar has gone down A lot.

LMFAO!!

 

[CHenry]

Yeah, the dollar is sucking right now, but how do you turn that gold into something you can buy a commodity with? That is what I don't understand. You can't convert it into currency if currency is in the tank like Venezuela.
I have a crap ton of old silver coins we got from FIL that passed away and threw his coins into boxes, lot of boxes over the years. Some may have numistic value as a collectors item, but when I posted some on here previously, I was told they would only be bought for the value of the silver. Pounds of Morgan Silver dollars and so on.

The dollar has NEVER failed.
Never will.
Bitcoin was the latest fad and its failing badly.

 

[CHenry]

IMO barter will be wide spread and although people will trade may item as needed, although mainly silver in bullion as well as pre 1964 coins will have purchasing power as well as ammo and reloading components and food. Also gold as a store of wealth, but the value of gold will be so high it will be useless for trade.

This maybe one of the most ignorant things I have read all week...
No, it is.
The Dollar has never failed, EVER and it wont now. Its value does rises and fall though. Look at history as far back as the 20s. It didnt fail then, it became very very strong during the depression. a dollar in 1920 was big time cash for a days pay. It was all other commodities that were shrinking in value so it was very hard to get a job.
No one realizes this fact.

 

[CHenry]

Yeah, the dollar is sucking right now, but how do you turn that gold into something you can buy a commodity with? That is what I don't understand. You can't convert it into currency if currency is in the tank like Venezuela.
I have a crap ton of old silver coins we got from FIL that passed away and threw his coins into boxes, lot of boxes over the years. Some may have numistic value as a collectors item, but when I posted some on here previously, I was told they would only be bought for the value of the silver. Pounds of Morgan Silver dollars and so on.

Actually, the inverse. The dollar value is directly related to Wall Street and Stocks are on sale cheap.
Think of it as buying Brisket for .99 cents a pound again like 20 years ago.

 

[Sgt Dog]

Meanwhile,
Members of Congress are facing renewed scrutiny after a new disclosure report filed by Florida Democrat Lois Frankel revealed that she dumped First Republic Bank stock prior to its collapse and purchased JPMorgan stock before JPMorgan purchased First Republic.

According to a financial disclosure report filed on April 28, Frankel sold between $1,001 and $15,000 in First Republic stock on March 16 and then bought between $1,001 and $15,000 in JPMorgan stock on March 22.

Frankel told CNN that her “account is managed independently by a money manager who buys and sells stocks at his discretion.” Congresswoman Frankel is not facing any investigations according to CNN.
Of course not, she is a liberal.
Meanwhile Matt Gaites and AOC have teamed up to put a bill forward that would not allow sitting elected officials to trade stocks while in office.
Strange partnership but it will never get out of committee likely. Too much money to be made.
Ask nancy pelosi. The queen of stock trading. Worth over 300 million dollars now with an annual salary of a couple hundred thousand.

I read where Nancy had participated (in a big way) in 16 IPOs (known) which exploded in value and which her position in Congress and Committee gave the inside dope for capitalizing on information. Martha Stewart went to jail for way less.

On banks, I don’t feel sorry for them and don’t believe in bail outs. But the whiplash environment has to be hard. “Government” is a one-word explanation for why they fail. The 2008 was because government encouraged high risk behavior… while it intentionally looked the other way. Today one side of our Government amateurs purchase votes with the currency of promises & reckless spending. They buy their power today with our kids future. Our grandkid's have the debt. We have the inflation! In response, those in that same government who have responsibility for ‘monetary policy’ have to put out the fire of inflation created by their pyromaniac evil twin by manufacturing a recession. Meanwhile President and his DEI-qualified cabinet facilitate a glidepath for China to tople the $$ as the World Currency. When we factor in International players offloading dollars we’re gonna see change added to the schizophrenia ward which starts pandemonium. Its hard to predict THAT future. We could see a weird inflation amidst a recession (even depression) with a collapsing dollar on top of THAT which makes our savings worth pennies on the dollar, all while being so far in debt we can’t even afford another World War. But hey, we stopped Covid dead it its tracks and got rid of Donald. So whatever happens is a win!

 

[trekrok]

Did you see it coming 5 years ago?

Would I have seen a problem with holding longer term bonds as a shorter term investment in a historically low interest rate environment? I'd like to think I would have.

I don't pretend to understand all of this, hence my question, I don't understand. But isn't it the job of the banker brainiacs to manage their risk?

My biggest issue with what's going on is the 'too big to fail' logic. Big bank goes down and FDIC steps in and retroactively makes their coverage unlimited. But I can almost guarantee if my neighborhood bank goes down, FDIC says tough. Especially in a red state.

It seems to me that the gov is basically telling all wealthy individuals or businesses that they should have their money in the big banks.

 

[Bravo1413]

Yeah, the dollar is sucking right now, but how do you turn that gold into something you can buy a commodity with? That is what I don't understand. You can't convert it into currency if currency is in the tank like Venezuela.
I have a crap ton of old silver coins we got from FIL that passed away and threw his coins into boxes, lot of boxes over the years. Some may have numistic value as a collectors item, but when I posted some on here previously, I was told they would only be bought for the value of the silver. Pounds of Morgan Silver dollars and so on.

If you a lot of silver coins 1964 and earlier and want to sell them, let me know. I will buy them all for much more than the coin machine.

 

[Bravo1413]

This maybe one of the most ignorant things I have read all week...
No, it is.
The Dollar has never failed, EVER and it wont now. Its value does rises and fall though. Look at history as far back as the 20s. It didnt fail then, it became very very strong during the depression. a dollar in 1920 was big time cash for a days pay. It was all other commodities that were shrinking in value so it was very hard to get a job.
No one realizes this fac