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SVB Used Former McCarthy Staffers to Weaken Regulations, Lobby FDIC

theintercept.com

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Re: SVB Used Former McCarthy Staffers to Weaken Regulations, Lobby FDIC

#41

Post by InTheArena »

makestuff wrote: post #23
InTheArena wrote: post #19

Earlier quoted context omitted.

The problem is is that the amount of debt is percentage of GDP, and therefore the interest rates that we need to pay are significantly higher now. This kind of analysis is hopelessly naïve without taking into account overall macro situation.

I always see people say the national debt doesn’t matter because it isn’t like household debt. However, I just fail to see how that is true. At some point the can won’t be able to be kicked down the road anymore. I guess everyone is hoping that it won’t be during their lifetime.

People still hold to Soviet style, Socialism/communism, why would you be surprised if they’re still holding on to modern monetary theory?

Re: SVB Used Former McCarthy Staffers to Weaken Regulations, Lobby FDIC

#42

Post by whitemary »

enriquec wrote: post #29
whitemary wrote: post #17

Earlier quoted context omitted.

And those regulations were opposed by the unions that Biden crushed by forcing them back to work. It's a class conflict, not a partisan one.

Its understood that those regulations wouldn’t have saved the train in Palestine. That’s one problem with the discourse on the left. I don’t favor regulation for the sake of regulation - nor cutting it for its own sake. There obviously needs to be a rational best-effort cost-benefit analysis. Not cheap politics.

You really think people are that stupid? Biden and the Democrats had their chance either way. They chose to crush the unions, so the burden of proof is on them. However, since this is politics, nobody is going to listen because it's too damn late.

Re: SVB Used Former McCarthy Staffers to Weaken Regulations, Lobby FDIC

#44

Post by egberts1 »

But the ultimate crux is done by the Federal Reserve Board for allowing $50+B --> non-bank "Finally, the Board has determined not to impose enhanced prudential standards on nonbank financial companies supervised by the Board through this final ($50B stress test) rule."

Not seeing any partisan hacks there, unless you count the financial ones.

https://www.govinfo.gov/content/pkg/FR-2014-03-27/html/2014-...

Re: SVB Used Former McCarthy Staffers to Weaken Regulations, Lobby FDIC

#45

Post by ursuscamp »

The entire system is a house of cards. The collateral of the system itself is debt (USTs). There is no firm ground to stand on after decades of low interest rates. Marginal tweaks to banking regulations neither caused nor can fix this.

The Fed is raising rates and we are taking our medicine.

Re: SVB Used Former McCarthy Staffers to Weaken Regulations, Lobby FDIC

#47

Post by whitemary »

olalonde wrote: post #39
whitemary wrote: post #25

Earlier quoted context omitted.

A sovereign state in a capitalist society is a capitalist state. A capitalist state always serves, in aggregate, the interests of the capitalist class. Karl Marx showed us how this works 150 years ago and nobody has challenged this part of his analysis to my knowledge. I am familiar with the delusional American libertarian fantasies, but that's just ideological denial. They haven't done any actual analysis of how a g…

I was referring to capitalism as in "free enterprise" (not as in "anything that happens in a mostly capitalist society"). Many of Marx' central theories were shown to be incorrect (e.g. labor theory of value) and personally, I don't buy the theory of class struggle (it is probably not even a falsifiable theory).

I didn't ask what you thought of "many of Marx's central theories" and I couldn't care less. I meant exactly what I said and I'm right.

Re: SVB Used Former McCarthy Staffers to Weaken Regulations, Lobby FDIC

#48

Post by [deleted] »

ZachPruckowski wrote: post #26
InTheArena wrote: post #19

Earlier quoted context omitted.

The problem is is that the amount of debt is percentage of GDP, and therefore the interest rates that we need to pay are significantly higher now. This kind of analysis is hopelessly naïve without taking into account overall macro situation.

I mean, yeah, that's ultimately a potential problem for the federal budget. But that's not what tripped up SVB - long-term Treasury prices declined because higher interest rates made short-term Treasuries more attractive than long-term ones.

[deleted]

Re: SVB Used Former McCarthy Staffers to Weaken Regulations, Lobby FDIC

#49

Post by wpietri »

whitemary wrote: post #30
wpietri wrote: post #22

Earlier quoted context omitted.

I think solving problems like corruption takes more than one thing, so I think false dichotomies are unhelpful.

What you call "corruption" is fundamental capitalism. In other words, there has never been and can never be a capitalist society without it. Thinking otherwise is capitalist utopianism. "The government" (or state) is part of capitalism. In fact, it is a critical component. There could be no capitalism without a state to enforce it. Libertarianism is not a coherent ideology; it is a disease of the intellect.

I meant that as corruption from the perspective of the governmental system. Which either you knew perfectly well or we're talking past one another here, so either way I think I'm done.

Re: SVB Used Former McCarthy Staffers to Weaken Regulations, Lobby FDIC

#50

Post by skwirl »

If SVB collapsed because of corruption in the federal government, then that just makes a stronger case for federal institutions doing whatever they need to do to make the depositors whole. The solution to failing to protect depositors is not to snuff them out, it's to make things right.
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