looks like the FEDs bailing out the banks with FDIC
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looks like the FEDs bailing out the banks with FDIC
20m ago
The latest efforts to quell investors’ SVB concerns won’t be reflected in most Asian equity futures markets, as many stopped trading before the announcements. Futures are broadly pointing to steep declines throughout the region, although futures in Australia just flipped to gains and New Zealand shares pared some of their earlier losses.
Jackie EdwardsStocks Editor, Sydney
5 min ago
Some reaction here from the chief North America economist at Capital Economics, Paul Ashworth, who said the Fed, Treasury and the FDIC have laid out a “fire break” for the banking system:
The authorities “have acted aggressively to prevent a contagion developing.
“Rationally, this should be enough to stop any contagion from spreading and taking down more banks, which can happen in the blink of an eye in the digital age. But contagion has always been more about irrational fear, so we would stress that there is no guarantee this will work.”
Adam HaighFinance Editor
Early days but ASX only down 0.24%
NZX still down 1.04%.
How many other shaky banks in the US, on top of hiked interest rates could be the real question :)
in fact apply that globally
how are the Chinese banks that were previously lumbered with overheated real estate exposure fairing now ?
Similar exposure risks may apply to many Western banks now to a degree on retreating property sectors
and with hiked interest rates thrown at them, reeling in earlier Covid excesses ..
Mere sniff of a warning can turn into a retreating spiral, as has been seen with earlier downturns
until confidence returns..
Interesting comment seen elsewhere:
Quote:
Now we have a new problem... if the Silicon valley bank is a "Lehman moment" (https://www.investopedia.com/lehman-moment-6752348) and triggers another great recession... then this could increase the risk of a bank run on other banks (who also invested in low interest rate bonds) and possibly bankrupt companies who deposit their funds there, etc etc the domino effect may in turn crash the stock market as we saw in 2008.
and this from - GR Decter CFA -
Quote:
Only 2.7% of SVB are less than US $250K
Meaning 97.3% aren't FDIC insured
Never seen such a worried hawk. But might be a good thing. The big crashes happen if nobody is worried, so keep going.
Predict a catastrophe every other month and some day you will be right. Sh*t happens, but not sure it will work out this time.
It appears the SVB used some of Trumps softeners to "deregulate" the banking market ... on top- of some other unusual banking practises (like risk concentration instead of risk diversification) ... I doubt that there are that many other idiots in charge of the banking sector in the US and I assume that a somewhat saner government these days will act now pretty quickly to remove Trumps softeners.
But hey, who knows. Sky might fall as well - did you consider that?
US government steps in to ensure depositors can withdraw their cash from Monday (US time) :
https://www.cnbc.com/2023/03/12/regu...-collapse.html
Second US bank fails after Silicon Valley collapse
https://www.stuff.co.nz/business/wor...alley-collapse
deposit's being covered
Jeez Joe - better get the other side onboard to retrospectively approve a new monetary ceiling, with the way
these things are sneezing coughing and falling over .. this could blow the bank :)
Wonder if the Bank of China have some readies they could throw in to help ?