only post in this thread if ur at work

I'm watching the current financial panic play out in real time. Be assured that it's not close in intensity to the initial panic during March 2020, but you wouldn't know it from the sensationalist coverage.

It's difficult to gauge to what extent this is all a storm in a teacup, but if 5+ shitty small banks fall over, then we have a Morgan Stanley sized problem. There are timelines where that happens, but it's all hysteria dependent.

Anyway, pension funds and insurance companies are at risk because the underlying issue exposed by SVB's failure is the accounting treatment of government bonds, which isn't so relevant to the big banks who will hold to maturity.

Edit: disregard that, this is Smogoff, the world is ending. GG millennials.
 
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McGrrr said:
I'm watching the current financial panic play out in real time. Be assured that it's not close in intensity to the initial panic during March 2020, but you wouldn't know it from the sensationalist coverage.

It's difficult to gauge to what extent this is all a storm in a teacup, but if 5+ shitty small banks fall over, then we have a Morgan Stanley sized problem. There are timelines where that happens, but it's all hysteria dependent.

Anyway, pension funds and insurance companies are exposed because the underlying issue exposed by SVB's failure is the accounting treatment of government bonds, which isn't so relevant to the big banks who will hold to maturity.

Edit: disregard that, this is Smogoff, the world is ending. GG millennials.
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hahaha wow.This is my favourite thinrg I have seen all morning.

i hope this erases trillion IN Unrealized gains from The pension funds… nothing i have nightmares about more than retirement!!!

glad that the Big bankshave their risks mitigated though. Would hate to See them Lose money. I love having access to easy(and free)debt!!!! Loan is FREE money.
 
Clementine said:
can u explain it to me like I'm 5 years old

or in pokemon terms
Click to expand...
just watch the dancinf gerbils babe..
5BCA9B95-86E7-4C8E-94CA-C5D76A1216DF.gif
 
Clementine said:
can u explain it to me like I'm 5 years old

or in pokemon terms
Click to expand...
Hello, i am the bank of zf. U have given me your money for safekeeping. I pay u a percentage of the value of that money per some agreed-upon period (ie every month) called interest. Now i take that money and do something with it - i might let someone else use it (a loan), or might buy something with it (bonds, commodities) that will make me more money long-term. Because the interest on the loan i gave out is higher than interest i pay you for giving me the money. But if you think about it, I actually don’t have your money. I gave it to someone else as a loan. Or i have an “asset” (also NOT money, but perhaps can be traded for money in an act known as a “sale”). The government say i only need to have a portion of your money, let’s say 10%. Now on a normal day, most people who gave the Bank of zf their money (lol morons) will not withdraw it all. So if you need to take out some, having 10% available should cover normal day to day stuff.

buy what if everyonewants their money? Or even worse, you owe someone else money?

well imagine the bank of Zf take does some bad shit. Like i took your money and bought 1 million beanie babies. Turns out, no one wants beanie babies in 2023 unfortunately, and they are now worthless. I just converted all that money into a useless asset. And now i can’t keep that 10% im legally required to have around because I owe money to a guy. A lot of money. So i go to some rich fuckers and ask for money (publicly) to keep my lights on.

however all the morons who gave me money in the first place (uh OH!!!) hear this too. And they want THEIR money. So now they come asking.Spaghetti - i alreadydon’t have my 10%, now i got 50% of my customers asking for all their money.I can’t pay that. Thisis Called a bank run.And these mfers wont accept beanie babies as collateral… they just WON’t…

so now i have no moneys, and still owe everyone a lot of monies. Well why should you care, u didn’t give me your money (smart guy)? Well it turns out i’m the 16th largest bank in the country because i’m such a genius grifter. Everyone gave me so much money. And i mean everyone - rich fuckers, companies, pensions, other banks. And some of them borrowed that money too!!!

turns out,all those guys could lose their money!!! Unthinkable!!!! Now i am threatening to kill them because they have no money because i lost all their money!!! Omg!!! And then those guys owe money to people!!! So if they die, those other peoplethey owe money to will die as well!!! Omg…

well right now we are trying to figure out if the bank of ZF was big enough to kill any the other banks. It would be prrtty funny if true

but joe Biden does not want to fuck around and find out. So he made the government give me all the money i need. So genius!!! So generous!!! Ong joe bidden i love you!!!
 
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Clementine said:
can u explain it to me like I'm 5 years old

or in pokemon terms
Click to expand...

I am a Pokémon Card bank. People deposit their Pokémon cards with me for safekeeping and I hold $200 of cards.

I lend out some cards, but must keep a certain number of Pokémon cards in the vault to satisfy withdrawals, say $100, but I am allowed to keep some Magic the Gathering cards as well because they are considered to be equivalent. I have a contract where I can sell those MTG cards for $100 in 10 year's time. I have $200 of reserves and customer deposits are fully covered (not realistic, but ignore fractional reserve banking for a moment).

The temporary value of MTG cards falls to $60, which is not a problem because I will still get $100 for them in the future. I will only lose if I am forced to sell them today. I recognise the value of the MTG cards at $100 on my balance sheet because I have no intention of selling them. I still have $200 of reserves, but would have $160 of reserves if I were to sell.

However, my customers suddenly want to withdraw $180 of Pokémon cards, so not only am I forced to sell my MTG cards at $60, I still do not have enough reserves to satisfy withdrawals. The FDIC gives my customers copies of their Pokémon cards, my bank is bankrupt, my shareholders and bondholders get nothing.

There are timelines where with enough hysteria the country talks itself into a nationwide bank run on small shitty banks.
 
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