And we're back!
Started by Tamas, May 25, 2022, 05:15:04 AM
Quote from: The Minsky Moment on March 15, 2023, 01:58:08 PMIt seems to me the focus on SVB's asset book is misplaced. SVB may have had its problems but it seems pretty glaring that there was a big problem on the liability side, namely high concentration of uninsured deposits among very similar kinds of depositors. Once the whispers trigger a run, all the risk management and hedges in the world can't save the bank. To my mind talking about the hedges on the asset book in that context is like debating the merits of different kinds of body armor after the target has been vaporized by a direct artillery hit.
Quote from: Iormlund on March 15, 2023, 04:45:17 PMApparently they successfully lobbied to defang the Dodd-Frank Act, which made them fall outside the scope of many controls.Citizens United paying off again.
Quote from: Tamas on March 16, 2023, 04:18:28 AMCredit Suisse is also being bailed out by its central bank.At which point should we acknowledge that pretentions of a free market are no longer sustainable? I am not saying that standing idle while these banks collapse are the better decisions, I don't know nearly enough to judge that, but such a system where central banks prop up everything, making profit individual but risk collectivised, is at best, state capitalism.
Quote from: Josquius on March 16, 2023, 04:19:47 AMPrivatise the profits, nationalise the losses, this is the law of the world.
Quote from: Admiral Yi on March 16, 2023, 09:43:02 AMQuote from: Josquius on March 16, 2023, 04:19:47 AMPrivatise the profits, nationalise the losses, this is the law of the world.SVB shareholders just got wiped out, erased. That doesn't fit your Occupy slogan.
Quote from: HVC on March 16, 2023, 09:58:32 AMThe board and upper management seemed to have done ok. That's what I understand privatize the profits means.
Quote from: Admiral Yi on March 15, 2023, 07:01:57 PMIf anything, if Joan's version is to be believed, the problem was caused by a regulatory reporting requirement, not the lack of one.
Quote from: grumbler on March 16, 2023, 10:07:13 AMQuote from: HVC on March 16, 2023, 09:58:32 AMThe board and upper management seemed to have done ok. That's what I understand privatize the profits means. I'm not sure what you mean. How did they do "all right" in the takeover, given that their jobs disappeared?
Quote from: grumbler on March 16, 2023, 08:17:41 AMThis is true about a lot of elements of the overall economic market. We are not moving away from a free market that never existed, we are adjusting the regulation of the market that exists. SC being able to borrow money from the SNB doesn't mean that the debt of CS is being collectivized. The SNB just becomes another creditor, and the net value of CS to its shareholders goes down by the amount borrowed. If this eases a liquidity crisis, rather than just propping up a leaning corpse, it's a good move for the public at large. If CS is fundamentally unsound, it isn't.
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