Stocks and Trading Thread - Channeling your inner Mono

[Admiral Yi]

I've never heard of the reserve requirement being abolished.

[HVC]

Let's see, I recall reading about it a few year ago, but this is what wiki says

The United States removed reserve requirements for nonpersonal time deposits and eurocurrency liabilities on Dec 27, 1990 and for net transaction accounts on March 27, 2020.

Net transaction accounts are checking and savings, so it appears that there's no reserve requirements for us banks any more.

But then again it's wiki, so you know... 

[Tamas]

What I have trouble with is not supervising banks enough but then bailing them out just the same.

Or their clients. Silicon Valley Bank probably made good use of their reckless investments and I assume their big clients benefited from that while the going was good, and turned out telhe risk they all took wasn't really a risk at least not for the uninsured depositors, because their money was retrospectively guaranteed.

And then the Fed started the program of effectively replacing shitty bonds with newer (and thus better) ones for all banks.

[Admiral Yi]

SVB's crazy reckless assets were US Treasury bonds.  I'm sure they made like a stupid mad 2%/year on them.

[Tamas]

SVB's crazy reckless assets were US Treasury bonds.  I'm sure they made like a stupid mad 2%/year on them.

Still, the uninsured deposits should have been left uninsured and no "exchange your bonds for free" program should have been initiated. Let crappy banks wash out of the system. You know, free market and all.

[Admiral Yi]

Still, the uninsured deposits should have been left uninsured and no "exchange your bonds for free" program should have been initiated. Let crappy banks wash out of the system. You know, free market and all.

SVB did wash out of the system.  And I would argue they were not a crappy bank.  They were an extremely conservative, solvent bank that got undone by irrational depositor behavior.

I agreed with you about not making depositors whole, but then as Joan pointed out businesses have no place to park their working capital.

[The Minsky Moment]

Reserve requirement was moved to zero when COVID hit.

By statute the Fed's authority to institute reserve requirements can be used "solely for the purpose of implementing monetary policy."  Reserve requirements are not set for prudential and regulatory purposes.  They are there to be used as a monetary policy tool. 

However, reserve requirements ceased being important as a tool for monetary a long time ago. Post 2008 they became a complete dead letter, as the amount of reserves that depository institutions kept with the Fed increased massively.  The level of reserves has declined somewhat from its peak but is still extremely high by pre 2009 standards.

[Hamilcar]

Microsoft 

[Hamilcar]

I tried experimenting with three top portfolio tracking tools and was really disappointed. They all support crypto and one even had an NFT option.

None of them allowed me to add a t bill. 

[Admiral Yi]

Nvidia up 23% in one day.  I don't think i've seen a one day rise that big outside a wallstreetbets stock.

[Tamas]

Nvidia up 23% in one day.  I don't think i've seen a one day rise that big outside a wallstreetbets stock.

AI AI AI AI!

[Josquius]

Didn't someone earlier in the thread warn against Nvidia?

[Admiral Yi]

Didn't someone earlier in the thread warn against Nvidia?

Should we cancel them?  Demand our fee back?

Every single stock has a bull case and a bear case.

[DGuller]

Nvidia's CUDA was a sleeper hit, it took years to pay off for them, but paying off it is.  I hope AMD and Intel are working on an effective response to CUDA, because otherwise Microsoft and Google monopoly might seem tame in comparison to Nvidia monopoly.

[Habbaku]

Didn't someone earlier in the thread warn against Nvidia?

Should we cancel them?  Demand our fee back?

Every single stock has a bull case and a bear case.

If you're going to get irate about following a tip that doesn't work out, maybe consider doing the rational thing and not engaging in stock picking?