Political Discussion

A lot of banks are hurting right now and it was a rough day on Wall Street for the top banks.

The report I heard was banks bought a lot of bonds and treasuries when interest rates were near zero. Now that interest rates are high again, they are sitting on a large inventory of bonds and treasuries that they can't sell/move.

And the ramifications could be bankruptcies. Meaning we could be in for a "too big to fail" scenario again or a real world of financial hurt.

The stock selloffs for banks is because the stock ratings show an increase in bankruptcy probability. Goldman Sachs for example, currently has a probability of bankruptcy of 49%. So pretty much 50/50 odds.

Inflation is currently heating up again, rather than cooling off so the Feds are considering more aggressive rate hikes this year if inflation continues to heat up.
 
epyon415 said:
Is there a specific reason it only occurs annually? Seems like with today’s tech centric world there should be at least a quarterly cadence to update these systems.
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Insurance contracts are updated annually and it would be a nightmare to update those contracts quarterly.
 
Wells Fargo is having systems issues today. The internet is freaking out that money is missing from their accounts / todays direct deposit didn't post.

Wells Fargo's official statement is that the money is in peoples accounts and that that their account balances are accurate. And that it's just system issues that are preventing some customers from seeing the correct balance at this time.

No comments from Wells Fargo on people saying they can't withdraw money from the ATM because the ATM doesn't show the right balance, or other people showing a negative balance and over draft fees.
 
The February jobs report is out. Here are the key takeaways

  • 311,000 jobs added which was much higher than expected
  • More women than men entered the workforce
  • Wage growth has slowed down to nearly stagnating which is a much larger decline in wage growth than expected.
  • Unemployment rate increased by 0.2%

Meanwhile, inflation is persistent, and the Feds said today that a larger than average rate hike may be needed.
 
RenegadeMonster said:
The February jobs report is out. Here are the key takeaways

  • 311,000 jobs added which was much higher than expected
  • More women than men entered the workforce
  • Wage growth has slowed down to nearly stagnating which is a much larger decline in wage growth than expected.
  • Unemployment rate increased by 0.2%

Meanwhile, inflation is persistent, and the Feds said today that a larger than average rate hike may be needed.
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Ask them how their profits are doing?
 
RenegadeMonster said:
The February jobs report is out. Here are the key takeaways

  • 311,000 jobs added which was much higher than expected
  • More women than men entered the workforce
  • Wage growth has slowed down to nearly stagnating which is a much larger decline in wage growth than expected.
  • Unemployment rate increased by 0.2%

Meanwhile, inflation is persistent, and the Feds said today that a larger than average rate hike may be needed.
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The feds are hell bent on putting us into recession because they would rather workers not have any power even though most of the inflation is not due to wages, but to record profits in the form of stock dividend payouts.
 
RenegadeMonster said:
www.bostonherald.com

Silicon Valley Bank shutters amid nationwide modern-day bank run

SVB bank melts down following a Thursday where its stock fell off the cliff, dropping 60% in one day. For those in the crowds, it’s feeling like 1929 all over again as customers converge on the ban…
www.bostonherald.com www.bostonherald.com
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Good news their deposits are insured up to 250,000. If you got more than 250,000 in the bank you probably didn't need it anyway. My apologies to anyone on this board that may have 250,000 in the bank. If I had 250,000 in the bank I know what I would be doing. I'd get real close to paying off my house note with it.
 
Yikes. SVG's primary clients were businesses and start up tech companies.

And these businesses are only insured up to $250,000. Lester Holt was just interviewing some business owners out 8 figures.
 
Boston just had another public transportation meltdown. Or rather, meltdown for commuters.

Last night and much of today has substantial delays on the subway and backups at stations got so bad they had to call in shuttle busses to alleviate trains.

Why. Federal Safety Inspectors discovered that the "T" was missing track safety inspection documentation. Thus a speed restriction was put into place to ensure the safety of passengers, but created massive delays and backlogs of people at stations. The speed restrictions could only be lifted after the documentation was found or tracks were reinspected. This impacted all lines. The speed restrictions have now been lifted for all but 2 lines.

This is just the latest in safety and infrastructure issues that have plagued the T in recent years.

NBC10 asked a Federal Rail Safety Official if this happens in other cities, or just Boston. And his answer was "Just Boston".

Years of underfunding, deferment of maintenance and mismanagement is to blame and the system is at a breaking point.
 
RenegadeMonster said:
Yikes. SVG's primary clients were businesses and start up tech companies.

And these businesses are only insured up to $250,000. Lester Holt was just interviewing some business owners out 8 figures.
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I don’t see this as a yikes, maybe if some of these people with more money than anyone could possibly need lose their shirts, things will start to correct.
 
Lee Newman said:
I don’t see this as a yikes, maybe if some of these people with more money than anyone could possibly need lose their shirts, things will start to correct.
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My concern wasn't about the individuals who have more money than they could possibly ever need. It's with the businesses, and how many of which could end up out of business and peoples livelihoods taken away. Especially with small businesses.

www.cnbc.com

Roku says 26% of its cash reserves are stuck in Silicon Valley Bank

Around $487 million of Roku's cash reserves are stuck at Silicon Valley Bank, the streaming media company said Friday.
www.cnbc.com www.cnbc.com

Also, what happens if a large company like Roku is suddenly out half a billion dollars? Layoffs?
 
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