https://nitter.1d4.us/charliebilello/status/1635982686111121408
"first they came for european industry, and I didn't speak up beacuse i'm a european finance capitalist. then they came for european banking, and there was no one who cared"
Respect the fucking grift.
Someday I hope to juke politicians the way these people do. Having all the political power seems fucking rad.
Reminds me of when Texas became the big spot to move your crypto mining operation because the government was paying people to not mine bitcoin.
Can this even be real?? I thought they got booted out already.
They are, I think this is the government management trying to keep depositors calm. From what I've heard the deposits can be covered, but it's conditional on liquidating assets at close to their market rate, which takes a while.
do NOT talk about moral hazard we need to focus on getting the line to go up right now
Tim MAYOpoulos
https://nitter.1d4.us/pic/orig/enc/bWVkaWEvRnJNbVdUbVhzQmtlU05LLnBuZw==
:screm-a::aaaa::aaaa::aaaa::aaaa::aaaa::aaaa::aaaa::aaaa::aaaa::aaaa:
I can't figure out how this doesn't break the global banking system
I don’t get how this works. You would need to keep money in the bank for the same amount to be insured. What’s the point of keeping, say, $5 million at SVB if you lose it and just get $5 million? You haven’t made any profits.
Unless they’re suggesting that they’ll reinvest/loan out the money, and if they make money the depositor profits via interest, and if they lose money, the government will just refund them the original amount
In the scenario, the person can either put 5 mil in SVB, lose it, and then get it all back without any worry or they can put that 5 mil into another bank and if it failed, they would lose that 5 mil.
Ah okay. That makes sense. But didn’t the fed seize it? I thought once that happens they’re gonna get liquidated and normal operations stop
