Check in thread to say thanks to President Biden for saving the American economy (again!) tonight!

[NewsCenter28]

One of the best nights of his presidency, imo. Brilliant move by his adminstration. Shout-outs to the FDIC, Treasury Secretary Yellen and Fed Chair Powell for bringing this brilliant plan together for him to sign off on. The Dow futures are soaring and all signs are pointing towards a crisis being averted. Can't wait for the President's planned statement tomorrow on this also! Just brilliant manuevering, similar to how President Obama navigated the 2008 financial crisis. Remember how it started by him schooling Mccain at the WH meeting with Mccain and Bush during the campaign?

Meanwhile, Peter Thiel and Donald Dotard will be having a very sad evening. They probably thought the American economy was about to crash and were celebrating. Won't get into whether or not Thiel and Bannon planned this or not here. Alas, 46 defeats 45 again!

[lapfog_1]

1. It wouldn't surprise me that Thiel hatched this plan

as interest rates increased rapidly, the exposure was there... and he may have hatched the plan to crash SVB by doing a run on the bank and withdrawing his hundreds of millions, hoping the contagion would spread to other banks and cause a global financial crises which would be blamed on Biden and the Democrats.

[roamer65]

2. This is the fault of Fed chair Powell.

Last edited Mon Mar 13, 2023, 01:04 AM - Edit history (2)

He is an incompetent moron who has raised interest rates too aggressively and is also constricting M1 money to rapidly, thus creating liquidity problems for banks.

I want him fucking fired. He should have known the weakness Dump created by messing with Dodd-Frank and acted more cautiously.

[wackadoo wabbit]

3. Forgive my ignorance, but I haven't been following developments today

What happened?

[walkingman]

4. Too big to fail is alive and well.

[wackadoo wabbit]

5. Wait! Is this another bailout?

I am so, so sick of socialism for financial institutions, where the profits are theirs and the risk is ours!

[liberal_mama]

10. Yep, looks like a bailout. I'm so sick of it too. n/t

[pnwmom]

13. No taxpayer money will be involved, so it's not a taxpayer bailout. nt

[pnwmom]

17. No taxpayer funds will be involved, if that's what you're concerned about.

And since the Fed helped bring this about, through their repeated interest rate increases during a short period of time, the depositors shouldn't have to suffer from this situation.

[kelly1mm]

6. F that! We have 250K FDIC insurance per bank for a reason. No changing the rules

after the fact just because Roku had 400M+ sitting in SVB. More favoritism towards the rich.

The real killer is this new program is NOT limited to SVB. Other banks will be able to continue operations and shareholder/executive value strip mining with this program.

[wackadoo wabbit]

7. Yes! No more socialism for financial institutions!

I'm sick of them getting the profits and us assuming the risk!

[roamer65]

9. Bingo. +1000

[pnwmom]

12. They didn't change the rules. Taxpayers won't be bailing out the banks BUT

the Dodd-Frank law set up procedures that let the banking system itself protect the depositors at the failed banks.

[walkingman]

23. This is not your grandfather's America

We have basically removed all risk of capitalism for the rich and well connected so they can make money hand over fist during bull runs and be bailed out during the business cycle correction phase.

[usonian]

8. I am writing in my diary: "Fed fails again to tank the economy and Biden"

[pnwmom]

11. I am very relieved. From the reaction here (with many insisting that nothing should be done

for the depositors) I was worried this could lead to a bank run, 2008-style, and a market crash, followed by Biden's loss in 2024.

Phew! He's acted wisely, as always.

[videohead5]

14. The banks are in much better shape

Then they were in 2008. Banks now go under a stress test.

[pnwmom]

16. No, they don't all do that anymore. In 2018 Trump signed a law that gutted parts

of Dodd Frank. Banks under $250 million are no longer required to be stress tested, and SVP is about $200 million, and so wasn't stress-tested.

Katie Porter has just announced plans to write new legislation to fix that problem.

[videohead5]

18. But the major banks are

Still in better shape than 2008. An expert on CNN said that things are much better than they were in 2008. Banks don't have as much of investments in mortgages securities even the smaller banks. That was the problem with SVP. They had invested too much in mortgages.

[pnwmom]

19. The major banks are, but a run on small and medium banks could still have terrible consequences.

And mortgages weren't the problem with SVP. They had actually over-invested in US treasuries, which are supposed to be a super-safe investment. So what happened? The Feds repeated rate hikes had lowered the value of the long-term treasuries the bank was holding.

[videohead5]

20. My mistake

You are right. somehow, I got mortgages and treasuries mixed up.

[pnwmom]

21. I hope the Fed thinks all this through before they decide to raise rates again.

These probably aren't the only banks holding lots of US treasury bonds that are being challenged by that.

[LostOne4Ever]

15. Thank you President Biden! (Nt)

[betsuni]

22. As usual, thank you President Biden!

And as always, the rule of immediately light-your-hair-on-fire assumption of Democrats' bad both-sides intentions and no benefit of the doubt was in full force. Even lying that the big banks didn't repay their bailout loans during the Obama administration, lying that this is a taxpayer bailout and be mad at Democrats for capitalism or whatever.

[former9thward]

24. "Dow futures are soaring" LOL

Dow finished DOWN 90. I guess the economy did not get saved if that is the measurement...