I get it.. they’re going belly up and not protecting the little guy taxpayer. Amd we’re all screwed
But how does it trickle and spill over from one to another? How is the stock market tied in, gold and silver tied in, China/Russia, fed reserve printing like its going out of style, hyperinflation, bailing out other countries banks. WTH? So confusing!!!
Any links or info I can use to fully understand this would be Great!
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Part of the contagion is that the banks are crooked and holding debt from other banks and pretending they're assets. It's rampant. A banking contagion is like a chain reaction that starts when one bank gets into trouble and spreads to other banks. Imagine it like this: Bank A has lent money to Bank B, which in turn has lent money to Bank C. Now, if Bank A starts to struggle and can't pay back its loans, Bank B is also at risk because it won't get the money it was expecting from Bank A. As a result, Bank B might struggle to pay back its own loans to Bank C. This can create a domino effect, with each bank's problems leading to the next one having issues. The contagion spreads as more and more banks get affected by the initial problem. While it's true that some banks use accounting tricks to hide their issues, the main point is that the interconnections between banks can lead to a large-scale crisis when one of them fails.
THE BANKING CENTIPEDE
It's like someone who has two credit cards. They pay back the owed balance of Card A with Card B and build credit. But at the end of the day, motherfucker still has to pay back the balance lol. And that's what we're seeing here.
And with the money circulating around trying to keep the banks solvent we're seeing someone rob Peter to pay Paul so that Paul can pay Peter.
Exactly my point thanks lol. That money has to come from somewhere, and the only solution to them is robbing the taxpayers. Because people are conditioned to obediently pay taxes or get Bill Coopered, they perpetuate the problem. Only solution for us is to stop bailing these thieves out and let them burn to the ground financially.
Very Good Analogy!!!😎😋😋😋
Look at this! You put all of your money in a bank and trusted that bank! Now it's all gone! You go to your room and think about what you did!
😂😂. With no supper
Little rough for a seven year old, I think.
Lol
For a 7 year old? This is the best I can do. https://www.youtube.com/watch?v=-DT7bX-B1Mg
My understanding is that banks were on life support back in 2008. Now the plug is being pulled. Every bank invested all their (our) money and now ppl are coming to collect. Once enough ppl bank run for their money, the bank collapses. Big bank hands them enough money to stay afloat. But once big bank comes for their money, the collapsed bank dies. Low intrest rates from 2020 are coming back to haunt the banks.
Precious metals were always a societies money. As long civilization exists, those will always be money. China and russia are in my opinion are switching to gold currency forcing anyone doing buisness with them to buy gold.
Long story short, dollar dies soon
watch the movie "to big to fail" it explains it well https://www.imdb.com/title/tt1742683/
👌
I can take a stab and a couple of items you listed.
Banks practice fractional reserve lending/investing. That means that they are required to keep a minimum amount of the money you deposit on-hand (maybe 10%). The rest they can lend out, or put into investments. If everyone goes to get their money out, it's not there. But the FDIC insures your deposits up to $250K. That's meant to keep people from demanding their money in a panic. We'll see.
A bank should keep their leverage down to 4:1 or so -- for every $5 dollars deposited, they use $4 of it as they see fit. Investment banks can go up to 8:1. SVB was leveraged at 180:1!
So when a big customer like Peter Thiel withdraw his substantial Founder's Fund, SVB couldn't cover it. Normally that's not an issue -- the bank just sells some investments, most likely 10 or 20 year T-bills. These are bonds that have a good return, and are "safe". They even come with a tax break. But with the interest rates being jacked up, the yield curve has inverted, which means that the long term bonds are underwater and sell at a loss.
The yield curve shows what bonds pay. Arrange bonds by maturity period from left to right with short term on the left, and long term on the right. Then plot the rate each pays. In normal times you will get a curve that is low on the left, building to a peak on the right, because a 4-week bond pays less interest than a 10-year bond. You are rewarded for tying your money up for so long, and taking more risk. But now, things are upside down, or inverted, the 4-week bond you can buy now is, because of the interest rates, paying more than the 10-year bond you bought a couple months back, at much less risk to boot. And no one will buy your underwater bond at anything near par -- they will want a 30 to 40% discount, so if you need money in a hurry to cover withdraws, you are going to have losses, and the more leveraged you are the greater those losses will be.
Janet Yellen has essentially said that the FDIC and the Treasury will cover all losses, even for uninsured deposits. Something that is impossible to do: insured deposits are at $11 trillion. Add in the uninsured and it's $18 trillion. The US GDP is around $20T, and the national debt is around $31. She is smoking dope.
That fractional reserve part is zero percent. I forget when it was removed, probably covid 2020. Fdic is broke, they maybe have a penny per person. But no one is getting their money unless the are part of the cult
The examiners still require reserves, the FDIC has removed them. The bank doesnt loan out 90% of your money and save 10 percent. They take your 100 dollars and get 900 from the discount window, which is "printed" by the fed, and loan that out. The pay 4% interest to you for your 100 and receive interest payments up t0 25% or more on the 900 they borrow at prime. Without doing the math its obvious they are turning a huge profit on your money. When you withdraw your money, they no longer have the reserves they need, so they must raise what they pay out on cds and money markets to get their reserves back up. The money printed for the loans is what causes inflation, conversely the paying down of loans causes deflation. The 10% reserve no longer exists, except for examiners (States charter banks) and when they allow those reserves to drop to a smaller percentage, the banks make more profit, but the risk of a run increase exponentially. I believe we will find that examiners in CA lowered the reserve requirements to yield higher profits, and as a result caused the bank runs without anyone standing in line. This is what fractional reserve banking is, and this is why you are seeing bank failures, it is by design. After the banks fail, the "too big to fail" banks buy up the assets of the smaller banks for pennies on the dollar and the competition is gone. Remember, the FED is owned by the "too big to fail" banks. However, in this case no one stepped up to buy SVB. Why? either it is backed by worthless loans, or the Biden administrations paln is for a complete failure of the banking system, CBDC to the rescue.
This is a very good explanation!
Thanks, but it is in no way complete.
I actually modified my 401k to be more aggressive on the off chance that if the market ever recovers, that I would have something lol. But maybe I'm wrong. I am only counting on money developing in a short period of time
Your asking alot. It's all connected but explaining everything is a big ask. I can give you a piece. Fractional banking. For evey 1000 dollars deposit the bank uses that (asset) to loan out 10,000 dollars in loans. Now up scale this 10,000 times. The banks are loaning out ( pretend money) but do not have ( real dollars) to cover their loans. A bank run quickly drains the banks fractional reserves ( peoples savings) trying to cover withdrawals. Credit swapps are banks borrowing from other banks to cover debt. It dominoes and infects them all. A ponzi scheme and the house of cards comes crashing down. Their is no money just pretend numbers, think of your 401k and the hundreds of thousands you've saved your whole life. Now realize, it's not their nothing is it's all gone, fake, and stolen, but in pretend world you have saved hundreds of thousands of dollars. Guess what, it's all gone.
Thank you!!
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This is the superstonk library of vetted DD - due diligence.
You just need to skim a few of them to see the depth of fuckery.
For more visual effects 30mins https://youtu.be/MucxVXEaKK4
Put your miney in a jar!
Go to bed already! Daddy need boom boom with mommy!
Credit unions are different then banks, but, and i mean a big but, they dipped their fingers into the honey pot aswell. Don't be surprised if credit unions start going belly up. They are all intertwined. That being said, i would pick a credit union over a bank any day
After the 2008 Hub-Bub...I DID...so glad too because I am not in the quagmire that most are int!!!
I just dumped BOA for a local credit union, because I’m hoping that it’s safer and because BOA sucks ass and deserves to die.
Amen and hallelujah!
Credit Unions are legally and organizationally under a different structure. Since they are member owned they are not as likely to suffer from behind the scenes shenanigans. That said, I am not an expert by any means.