NEW: First Republic Bank Downgraded to Junk by S&P
Cristina LailaMar. 15, 2023 1:45 pm
176 Comments
Mar. 15, 2023 1:45 pm
176 Comments
1) the big one would be a delay in the transition of indexing from LIBOR to SOFR on 6/30/23. It was pushed back by Bernanke and then by Yellen but accelerated by Powell. This is the key to all of the power struggles because it decides who runs the show. LIBOR have run this since the early-mid 1800's and The Fed and US banks are sick of it. Its the most important thing that will happen since Covid
2) there are 3 Fed meetings before 6/30 .... next week, May 3, June 14. Powell will either hold the rate or increase it at each of these meetings. Any lowering and I'll rethink my position
3) if what is called a "bailout" of the banks is really a bailout (aka free taxpayer money) and not just a loan against the T-bills these banks are holding at poor percentage rates (some as low as .08%).
4) if the companies impacted by non FDIC-insured deposits don't go running to one of the big banks to park their money. part of this whole deal is sending the riskiest ponzi scheme regional banks out of business and then the solid companies that were depositing there come running for safety at BNY, BoA, Goldman, JPM, etc. So watch for all the big banks that the Fed truly cares about to see an influx of billions upon billions of new deposits
Remember earlier this month the Saudis and Iranians put aside their hatred to resume relations and reopen an embassy in the other's country. a few weeks later the Saudis withhold $60B that Europe's biggest bank needs to survive. The Saudis = same country that gave Biden and the Uniparty the giant middle finger last year and just came out and told the Biden Administration to go fuck themselves and their caps on oil prices while simultaneously giving Xi and China a giant hug. The Uniparty and Davos are getting plowed through every orifice right now by The Fed, BRICS, and Iran. It really is wonderful to watch
and Davos has responded
JUST IN - European Central Bank raises interest rates by 0.50% to 3.50%.
i expect they are giving european companies a reason not to park their money in 4% US Treasury Bonds which continues to strengthen the dollar. this comes just a day after the Euro lost 1.5% to the USD in the single biggest loss of their currency since March 2020. Anyone ever see a 3% increase in interest rates in one day? yeah, me neither. The old banking system is now working off their desperation playbook
the war for the offshore Dollar market is on!
JUST IN - European Central Bank raises interest rates by 0.50% to 3.50%.
i expect they are giving european companies a reason not to park their money in 4% US Treasury Bonds which continues to strengthen the dollar. this comes just a day after the Euro lost 1.5% to the USD in the single biggest loss of their currency since March 2020. Anyone ever see a 3% increase in interest rates in one day? yeah, me neither. The old banking system is now working off their desperation playbook
the war for the offshore Dollar market is on!
For those who have no idea what I'm talking about here is the Minister of Energy of the Saudi Kingdom:
"So if there is a price cap on Saudi oil exports, we will not sell oil to any country that imposes a price cap on our supplies, and we will cut oil production, and I would not be surprised if others do the same,"
All Biden and the Uniparty are doing right now is allowing previously neutral countries to line up against them and Davos. They keep thinking everyone is worried about our big stick but the game has gotten old to the rest of the world.
although the B in BRICS is tenuous it can be renamed RIICSS (Russia, India, Iran, China, South Africa, Saudi Arabia) and we can probably toss a T in there soon for Turkey and another S for South America. So unless the USA decides it's time for Saudi Arabia to taste our version of freedom (see Iraq, Afghanistan) then we better start reversing our energy policies pronto
by "rescue" they mean takeover and only of the truly worthy assets. the rest will burn into ash. The US GOVT can't do shit, it's the Fed who is telling Biden to go fuck himself and his tranny cabinet
bloomberg is THE establishment, they're complete twats. might as well cite HuffPost
Don't forget Biden's position on the Saudis killing of Kashoggi. I mean who sets foreign policy with a strategic partner over their killing of one man?! One of the first FUs the big talking dumb fuck flung around when he first took office. That's what set the USA / Saudi relationship way back. Months later the Saudis told him to go fuck himself when he came begging for their oil. And now the new Saudi alliances with all the wrong people. Good job, Joe. You fucking buffoon.
quick rundown on what's happening. The Fed is loaning out money at 4.5-4.75% to these stressed banks but only to the amount of their real assets (Mortgage-Backed Securities and Bonds they were holding at low rates). And they have guarantees to drop these clowns if they make risky banking decisions (aka if they don't know how to be a responsible banker). What will happen is the companies will now take their deposits and plant them in a safe zone, one of The Feds trusted monster banks. The stressed bank will go belly-up so the Fed will then take back those real assets and never inject new liquidity into the market like a QE plan. The strong depositors as the stressed banks are now working with JPM/BOA/PNC/BNY, the risky ponzi bank fades away, and commercial banking gets consolidated in the small group of banks The Fed truly cares about.
Obviously SVB is just the start. A lot of these regional ponzi bankers are aligned to just one or two speculative industries, SVB just happened to be lending out way too much of their deposits to incredibly risky climate tech clown companies so they could play the "we lend out to 62% of the solar market" card. That and a gender fluid Chief Risk Officer will get you bankrupt. good riddance
Obviously SVB is just the start. A lot of these regional ponzi bankers are aligned to just one or two speculative industries, SVB just happened to be lending out way too much of their deposits to incredibly risky climate tech clown companies so they could play the "we lend out to 62% of the solar market" card. That and a gender fluid Chief Risk Officer will get you bankrupt. good riddance
don't worry y'all, Europe is doing fine. Nothing like a little French Revolution to get your Patty's Day going
Mannequins bearing the likenesses of Emmanuel Macron, Élisabeth Borne, Olivier Véran and Olivier Dussopt were burned by demonstrators across the nation after the government used 49.3.
