Intrinsic wrote: ↑Mon Mar 06, 2023 1:04 pm
That's what you see as incompetent! holy shit that's what you got??? Embarrassing
What's embarrassing is your lack of understand of the topic.
When you have folks like Raskin, that don't understand the mechanics that changes in money supply have on inflation and therefore the economy, then you get shit like this...the second largest bank failure in history...
While Biden's media talks a lot of jargon, without actually saying much...
...leaving the lane wide open for Tucker to have the most accurate report...
That...is fukking embarrassing.
No matter your political tilt, understand this...this collapse is a direct result of increasing money supply ("printing money").
Goes like this...
Money is "printed", increasing money supply...
...that increase in money supply causes inflation...
...to combat that inflation, the Fed raises interest rates...
...when the Fed raises rates, the value of issued T-bills decreases...
...SVB had 57% of it' assets in T-bills, compared to 42% at the next bank down the list...
...that loss, coupled with the executive stock dumping, caused a drop in depositor confidence...
...and literally overnight, the FDIC has to set up a conservatorship.
We'd better hope this isn't the start of something bigger.
