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Jann Marie's avatar

Related, however on the FDIC side of the coin-- tonight my husband comes home and says that his bank is going to have to fork out $148K/yr for two years but all upfront, for the recent bank failures , in addition of course to the FDIC insurance they already pay. I asked how the rate is determined, he said off uninsured deposits, he states that theirs is only at 3 or 4%. He went on to say, many other small banks have a higher % of uninsured deposits, so they will have to pay upwards of 1M , and those banks don't even make that much profit in a year. He's livid. He says it's just another way of putting small banks out of business, with the ultimate goal of having just the big four at the end.

And by ruining the profit margin it means less money for employees' raises the next two years, which upsets him. And of course less $ for the shareholders. And then because the profit margin goes down, then the FDIC screws them even harder by hitting them with a lower bank rating, which in turn means their FDIC insurance goes up through absolutely no fault of their own.

It's utter BS.

Sixty days for comments to the FDIC before the final decision is made.

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Rudy Havenstein's avatar

I think accounts over the FDIC limit should pay for additional insurance, rather than the banks, as a % of their uninsured deposits.

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Jann Marie's avatar

That seems to be a pretty fair way of addressing it.

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Rudy Havenstein's avatar

I think so. Under 250k, as now. Bank pays for insurance, backed by FDIC/taxpayers.

Over $250k, depositor pays. Make it private insurance, so if insurance fund fails, taxpayers are not on the hook. Gives incentive for Bill Ackman types to shop around, and pay up for a backstop.

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Stonksguy's avatar

Rudy, You have a youtube video that you had posted on the twitter thread that had this clip in it. Do you still have that link ?

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Andy Etnyre's avatar

Capitalism is coming for the Fed.....

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Rudy Havenstein's avatar

Excellent

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The Rational Walk's avatar

Every time I read about the Fed’s “aggressive” actions, I’m more convinced than ever that much of financial media is simply propaganda. At least there are still a few truth tellers.

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Rudy Havenstein's avatar

Sohn Conference recently https://youtu.be/-7sWLIybWnQ

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Bob Gonzales's avatar

Dr Havenstein,

das war das wertvollste Video des letzten Jahres - wir danken dir und natürlich Stan The Man 🙏🎯https://vimeo.com/548917378

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James Twmann's avatar

Today I can say with confidence I 100% understand Stanley. The people who got the mortgage at 2.75% and goosed their investments with margin aren't suffering from inflation in housing, food, and energy. They probably won't be those who lose their jobs. Those in the past who received stimulus checks will wonder why not this time.

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Millicent Taylor's avatar

Great video. Thanks.

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Margaret B. Irvine's avatar

Rudy, You've likely seen his foreboding update from yesterday. "We have no historical analog..." https://youtu.be/-7sWLIybWnQ.

p.s. I can live without you on Twitter. I just don't want to.

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Kristi O'Sullivan's avatar

Watched that yesterday - not comforting when the ‘old dogs’ don’t know what to make of the future. His candour and honesty is refreshing.

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Silence DoGood, MBA's avatar

WOW, he used their ACTUAL name: Federal Reserve [BANK OF THE UNITED STATES]. They are the nation's bank - so all the "common folk" banks all the way up to commercial and investment banks don't even matter, because it's a total fraud that We The People were duped on once again in 1913 (for the third time since the beginning of our nation). And the insiders know we use debt instead of money backed by anything to exchange with, yet the exposure of this by an insider would disrupt their own life because they would become an outcast. But little do they realize that just a few insider whistleblowers would turn the system upside down, FAST! I have a feeling many people will wake up this summer!

☕✝️

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CB's avatar

Except this time around, we did have the inflation before the bust. So how do we navigate this scenario, Stan?

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Phil Bak's avatar

Gotta remember, this was at the height of the bubble. Bookmark this one for when they pretend that no one could have foreseen this.

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RD's avatar

😳 <----- yellen “there will be no recession”

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Rudy Havenstein's avatar

Finger on the pulse

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