Monitoring US Economy

AK047

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Jokes aside, in absolute layman terms -

1. SVB saw a flood of deposits during covid thanks to QE.

2. SVB invested in long term deposits at low rates of interest.

3. Once Fed started raising rates, depositors found greater returns outside of SVB and started withdrawing money.

4. SVB lent money against deposits to VC firms who in turn invested in startups.

5. SVB suddenly finds itself short of liquidity. Refinancing gets tough. Board gets panicky. Word gets out on the street. Share gets hammered out of shape, can't pledge those and borrow cash as few would lend against a falling stock. The sharks(big banks) lie in wait for the victims weakest moment. Customers who abandoned ship early made it out just in time before the shutters fell.

BoFA is expected to take a hit in excess of $100 billion.

No lessons learnt since subprime crisis. ~ftw~
So we can expect a global meltdown on Monday in stock market?? Will it lead to another 2008 or the Government will bail it out??
 

another_armchair

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So we can expect a global meltdown on Monday in stock market?? Will it lead to another 2008 or the Government will bail it out??
Little idea about market direction as our markets have a mind of their own. I have a small short position on the Nifty index since Thursday.

Will consider going long in select stocks after Mar 23rd(FOMC).

As for bailout, there's already chatter of another QE. :pound:
 

Johny_Baba

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*microsoft, google and other tech giants investing massively in AI based programming and all be like*
bahut bura hua vroo
1678526314965.png


this may very well lead us towards more automation in IT (powered by AI, chatgpt and so are already marching ahead) and giga cutting down of various "bullshit jobs" - 'specially at management levels and all.
 

SKC

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*microsoft, google and other tech giants investing massively in AI based programming and all be like*
bahut bura hua vroo
View attachment 196358

this may very well lead us towards more automation in IT (powered by AI, chatgpt and so are already marching ahead) and giga cutting down of various "bullshit jobs" - 'specially at management levels and all.
Automation in IT is going to hit Higher paying roles and will increase an influx of lower GET level roles.
 

another_armchair

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Hari Sud

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SVB Bank and Adani

Are you enjoying the SBV Bank troubles?

In fact we should!

The Americans were having so much fun enjoying Adani financial troubles two months back. Now we should return the favour and laugh at the poor state of financial health of American Bank (s).

To tell you the truth, the Adani’s had done nothing wrong. They were mortgaging their stocks to finance their expansion. They mortgaged assets/Stocks of each new company they purchased. That is a standard way to raise capital to finance expansion. If not all then most companies in US finance their expansion in a similar way, except somebody did not like their rapid rise. They used Hindenburg to destroy it, but could not, as Adani is still a large operating company. They are returning money as it comes due and have cancelled their stock issue and are on a recovery path.

The SVB Bank fiasco should not be allowed to be handled and suppressed by American regulators only. Other people who lost money (real money not paper money) should independently investigate its banking affairs.
 

ezsasa

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when we don't apply conversion rates, 20 billion $ is 2000 crore $.
======
Stunning story of how primitive US bank funding system is. SVB asked for $20 bn from San Francisco FHLB which could not process the request because it was mid day!! Then it failed to process SVB request to access Fed's discount window as well until it was too late. Amazing :)

1679635116667.png


 
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Trial By Fire

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The Great Depression began in August 1929, when the economic expansion of the Twenties came to an end. A series of financial crises punctuated the contraction.

This chart shows Global Financials today. The Fed is raising rates while watching regional banks implode left and right.

1683442730665.png
 

Trial By Fire

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China continues to sell US Treasury debt and buy gold.

China raised its gold holdings by about 8.09 tons in April.

Total stockpiles now sit at about 2,076 tons, after the nation increased reserves by about 120 tons in the five months through March.

IMG_20230507_183751_751.jpg
 

Azaad

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China continues to sell US Treasury debt and buy gold.

China raised its gold holdings by about 8.09 tons in April.

Total stockpiles now sit at about 2,076 tons, after the nation increased reserves by about 120 tons in the five months through March.

View attachment 203414
I think the process of delinking China from the USD has begun in earnest but they're going about it in a very low key manner. One of the unintended benefits to the US economy courtesy the war in Ukraine. Generations from now will look back at the US involvement in precipitating the Ukrainian war as the beginning of the decline of the USD & its economy. Of course the decline began much earlier but this was the tipping point.


Reminds me of the character Vakeel Mulye in Satya after the death of Bhiku Mhatre - isko bola tha, apne dhandhe mein ek gaya toh sab jaayega. Par dhandha iske samajh mein aaya hi nahin...
 

Trial By Fire

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Generations from now will look back at the US involvement in precipitating the Ukrainian war as the beginning of the decline of the USD & its economy. Of course the decline began much earlier but this was the tipping point.
This is more true than people realize. They were simply buying time since the 2008 crisis; the collapse was inevitable, they just wanted to control the timing. This is the gold example which should be taught to people about how a debt-based central bank destroys a nation, the Trojan horse is the Federal Reserve Note ITSELF:

>Be NY Federal Reserve whose primary dealers are market makers for US treasuries
>Zero allegiance to any nation; now bankrupt, unsustainable and treacherous
>Issues US debt-based currency in form of Federal Reserve Notes, which are quantified in units of US Dollars
>The NY Federal Reserve’s primary dealers CONFLATE their worthless Federal Reserve Notes with the $USD, while indebting ENTIRE nations and acquiring global assets into their private banking franchises, thus DRAWING IRE upon the United States

>Russia invades Ukraine
>Case-by-case, selective sanctions applied to Russia in the NYFed/BIS/IMF cartel’s SWIFT system (only allowing certain financial transactions to be cleared)

>Other countries holding Federal Reserve Notes BECOME AWARE that the Federal Reserve can just freeze/seize any nation’s financial assets out of the SWIFT system ON WHIM now (just like they can NOW give their fellow banking failures unlimited FDIC insurance in the US kek)

>In response to the NYFed’s selective sanctions, other countries begin to transact in their own currencies, further destroying the value of the already-overinflated Federal Reserve Note WHILE SIMULTANEOUSLY destroying the US Dollar on the world stage, right along with the US treasury market

>Largest primary dealers (owners) of the NYFed have been investing in BOTH China and Russia ALL ALONG, as well as RIGHT NOW

Basically, the NYFed destroys the US Dollar by conflating it with their now-globally-devalued Federal Reserve Note, further weakening and subverting America economically, while simultaneously investing in other nations.
 

ezsasa

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This is more true than people realize. They were simply buying time since the 2008 crisis; the collapse was inevitable, they just wanted to control the timing. This is the gold example which should be taught to people about how a debt-based central bank destroys a nation, the Trojan horse is the Federal Reserve Note ITSELF:

>Be NY Federal Reserve whose primary dealers are market makers for US treasuries
>Zero allegiance to any nation; now bankrupt, unsustainable and treacherous
>Issues US debt-based currency in form of Federal Reserve Notes, which are quantified in units of US Dollars
>The NY Federal Reserve’s primary dealers CONFLATE their worthless Federal Reserve Notes with the $USD, while indebting ENTIRE nations and acquiring global assets into their private banking franchises, thus DRAWING IRE upon the United States

>Russia invades Ukraine
>Case-by-case, selective sanctions applied to Russia in the NYFed/BIS/IMF cartel’s SWIFT system (only allowing certain financial transactions to be cleared)

>Other countries holding Federal Reserve Notes BECOME AWARE that the Federal Reserve can just freeze/seize any nation’s financial assets out of the SWIFT system ON WHIM now (just like they can NOW give their fellow banking failures unlimited FDIC insurance in the US kek)

>In response to the NYFed’s selective sanctions, other countries begin to transact in their own currencies, further destroying the value of the already-overinflated Federal Reserve Note WHILE SIMULTANEOUSLY destroying the US Dollar on the world stage, right along with the US treasury market

>Largest primary dealers (owners) of the NYFed have been investing in BOTH China and Russia ALL ALONG, as well as RIGHT NOW

Basically, the NYFed destroys the US Dollar by conflating it with their now-globally-devalued Federal Reserve Note, further weakening and subverting America economically, while simultaneously investing in other nations.
is there a known link between "transferring inflation" and your last line "while simultaneously investing in other nations" or is it a simple math of investing in returns?
 

Trial By Fire

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is there a known link between "transferring inflation" and your last line "while simultaneously investing in other nations" or is it a simple math of investing in returns?
By "transferring inflation", do you mean the Great Satan's practice of exporting their inflation to other countries around the world?
 

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