Is This The Start Of Something Bigger, US Banking Collapse?

[chrisp]

Supply and demand.

Described in your two scenarios.

‘Supply and demand’ isn’t a law in a scientific sense. Physical laws are based upon observations and making an equation to predict future behaviour. If the equation reliably predicts the future behaviour, it becomes a law.

Supply and demand doesn’t seem to be able to predict the behaviour of the markets at all. It might explain them, but it doesn’t predict them,

It’d be a bit like saying that the law of gravity is what goes up must come down. Hardly a useful prediction, nor is it universally true, and so it’s not a law. ‘Up’ has no reference in outer space!

Economics is just a man made system for doing trade and valuing things. Hardly the stuff of a fundamental science.

 

[VS 5.0]

most of their spare deposit funds into US treasuries

And long dated mortgage backed securities.

https://www.watoday.com.au/business...ica-s-most-unusual-banks-20230313-p5crix.html

https://www.watoday.com.au/business...n-t-turn-into-armageddon-20230313-p5crox.html

 

[Immortality]

Human beings are fickle creatures so who knows what happens next.

 

[greenacc]

Ah the US financial system. No better than crypto, the only difference being the proprietors wear suits.
Because it's all digital theoretical baseless currency. Tom borrows from Dick, and promises to pay Dick back in thirty years but loses it on some margin lending bs trying to double it in the process. Then Harry comes along and withdraws his 20k of real savings to buy a car and the whole pyramid crumbles.
Global markets often fall in sympathy because people see how unstable they are and don't want to lose their money. A lot of the fastest growing stocks are nothing more than a fancy webpage but on paper they're worth billions HA!

 

[chrisp]

“The only function of economic forecasting is to make astrology look respectable” — John Kenneth Galbraith

 

[Immortality]

Makes for an interesting read, Honesty and transparency is apparently overrated!

https://edition.cnn.com/2023/03/13/business/svb-employees-angry-at-ceo/index.html

 

[Forcedvp]

!0% or more withdrawal is enough to bring any bank down. Thanks to fractional reserve/ lending. A lot of European banks in big trouble. Swiss bank and Duetch bank are ones to keep an eye on. Japan not looking too good either. Many countries such as China and India are buying record tons of Gold/Silver. They know something is coming. Might have to dig out some old PCB's/Motherboards and start extracting gold from them.

Correction. Less than 2%

 

[Immortality]

The rot continues.

Stock market news: SVB, Dow and S&P updates

Credit Suisse on Wednesday said it would borrow 50 billion Swiss Francs ($53.7 billion) from the Swiss National Bank. Follow live updates on global markets.

edition.cnn.com

 

[VS 5.0]

More on Credit Suisse here - https://www.smh.com.au/business/com...-turmoil-what-went-wrong-20230316-p5csji.html

 

[Skylarking]

It's certainly make the NZ markets take note.

and many other overseas markets. And that in itself is weird.

Not really weird as it‘s the same sleight of hand being played everywhere. They all scurry away when their shell game gets noticed because these shysters don’t like a light shining on them…

Really, banks should have requirements for larger cash holding, and for lower leveraging than they are allowed atm, otherwise they really fcuk around with us…. Banks need to be under much tighter controls along with the share market where high frequency trading and short selling should be illegal.

Until then SSDD.

“The only function of economic forecasting is to make astrology look respectable” — John Kenneth Galbraith

Never heard of the guy but he’s got some substance behind him.

And he was a prolific author so has made quite a few quotes but the following captures some of the stupidity of people and countries…

“The process by which banks create money is so simple that the mind is repelled” - John Kenneth Galbraith

“The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness” - John Kenneth Galbraith

“Under capitalism, man exploits man. Under communism, it's just the opposite” - John Kenneth Galbraith

SSDD…