I’ve noticed that since around 2020, the MSM has taken to judging the statements of politicians with qualifications like “Senator so-and-so falsely claimed that …”. I am eagerly awaiting such qualified judgment the next time Joe Biden or Janet Yellen claim that the SVB and Signature bailouts were not bailouts. The FDIC is eating $20 billion on SVB alone. That’ll be passed on to all other banks in higher deposit insurance premiums and will impact their shareholders, employees, customers, and ultimately the real economy. That $20 billion is a direct transfer to large depositors of SVB who should have taken a haircut but those depositors just happened to be politically favored. If SVB’s uninsured depositors were coal companies or E&P companies, they would never have been bailed out.
You’re a great consolation, Rudy, in this the Age of Greed. As muckraker Jessica Mitford said “"You may not be able to change the world, but at least you can embarrass the guilty."
If I could publicly pick your brain - if you were trying to tell 20-somethings about the GFC and could use a 60-90 second clip from The Big Short, is there an obvious choice? I know they should see the whole thing anyway.
So the banks become casinos, and when they lose, the governments print money. So inflation rises, increasing financial stress on average Joe and Joanne, they default on their mortgages, so MBS go to zero like 2008 again. Governments print more money to bailout MBS holders, causing more inflation? Yearly inflation in US for '07 was 2.85%, '08 was 3.84%, '09 was -0.36%. Is there a major lag effect here or did '08's GFC not really impact inflation as much as COVID stimulus packages did? What am I missing? (https://www.in2013dollars.com/inflation-rate-in-2008#:~:text=The%20inflation%20rate%20in%202007,consumer%20price%20index%20(CPI).)
I’ve noticed that since around 2020, the MSM has taken to judging the statements of politicians with qualifications like “Senator so-and-so falsely claimed that …”. I am eagerly awaiting such qualified judgment the next time Joe Biden or Janet Yellen claim that the SVB and Signature bailouts were not bailouts. The FDIC is eating $20 billion on SVB alone. That’ll be passed on to all other banks in higher deposit insurance premiums and will impact their shareholders, employees, customers, and ultimately the real economy. That $20 billion is a direct transfer to large depositors of SVB who should have taken a haircut but those depositors just happened to be politically favored. If SVB’s uninsured depositors were coal companies or E&P companies, they would never have been bailed out.
You’re a great consolation, Rudy, in this the Age of Greed. As muckraker Jessica Mitford said “"You may not be able to change the world, but at least you can embarrass the guilty."
If I could publicly pick your brain - if you were trying to tell 20-somethings about the GFC and could use a 60-90 second clip from The Big Short, is there an obvious choice? I know they should see the whole thing anyway.
So the banks become casinos, and when they lose, the governments print money. So inflation rises, increasing financial stress on average Joe and Joanne, they default on their mortgages, so MBS go to zero like 2008 again. Governments print more money to bailout MBS holders, causing more inflation? Yearly inflation in US for '07 was 2.85%, '08 was 3.84%, '09 was -0.36%. Is there a major lag effect here or did '08's GFC not really impact inflation as much as COVID stimulus packages did? What am I missing? (https://www.in2013dollars.com/inflation-rate-in-2008#:~:text=The%20inflation%20rate%20in%202007,consumer%20price%20index%20(CPI).)
Seems like a lot of talentless hacks and parasites were simply riding a tsunami of horrible monetary policy.
Who is worth less - A sell side analyst or a bank panel valuer?
Sorry Hulk, it's not going to work. Better to smash than to sleep.