151–160 of 222 posts
Earlier quoted context omitted.
I just got an email from Mercury saying they’re well capitalized and all is well. “ I want to assure you that Mercury is in a strong financial position (profitable and well-capitalized), and we have a number of ways that we keep deposits on Mercury safe:” Uhoh.
"As long as everyone doesn't try withdrawing their money all at once, everything will be fine. So don't panic..."
As a side note, I find it fascinating how fractional reserve banking is not only legal but considered indispensable to the economy. It just sounds like a big scam. Why do private bankers get to create money and decide who gets it? It feels like there has to be a better way.
It's the system working as designed.
Earlier quoted context omitted.
This is how financial crises start. IndyMac ($40 billion) went under in July 2008 which caused tension, and then Lehman fell apart two months later which led to 15 institutions failing in a matter of weeks. There are other financial institutions that are suffering. We could definitely see cascades among some of the weaker banks
Those banks were all built on a fraudulent and irrational housing bubble. SVB just bought too many bad bonds and got stuck. I don't see the industry-wide effects from this.
Earlier quoted context omitted.
> $500,000 That's way too low. The other thing this exposed is that FDIC protection for businesses is also too low.
If you want the government to backstop every single risk for businesses and investors, then prepare to pay a lot more in taxes.
Earlier quoted context omitted.
Silicon Valley Bank was a go-to bank for many big technology companies because it forged deep connections in the industry. The bank experienced a bank run and had to be taken over by the FDIC (U.S. government). Roku is letting investors know that they have a lot of cash stuck there and may not be able to access it for a while (as the FDIC tries to sort out the mess).
The US Government is the people of the US. They went over the 250k limit. If they don't have private insurance for that, fuck them they're on their own. Not big enough to bail out, the regular people didn't get it either in the great recession.
Earlier quoted context omitted.
Those banks were all built on a fraudulent and irrational housing bubble. SVB just bought too many bad bonds and got stuck. I don't see the industry-wide effects from this.
The bonds aren’t bad. They are performing according to all reports I’m reading. They simply have a longer date to maturity then is comfortable for the depositors withdrawal cadences, and they have had to be sold / marked down in a period of rising interest rates.
As a side note, I find it fascinating how fractional reserve banking is not only legal but considered indispensable to the economy. It just sounds like a big scam. Why do private bankers get to create money and decide who gets it? It feels like there has to be a better way.
https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/m...
Earlier quoted context omitted.
They don't create money, they loan out deposits. It's not as scammy as people think. You are free to put your cash in a mattress instead.
Sure, but why couldn't be a bank that's just like a money vault and that's it. I don't care if I get no interest, I may even pay a fee for that service.
Earlier quoted context omitted.
They don't create money, they loan out deposits. It's not as scammy as people think. You are free to put your cash in a mattress instead.
Sure, but why couldn't be a bank that's just like a money vault and that's it. I don't care if I get no interest, I may even pay a fee for that service.