Bill asks why so many bank regulators were asleep at the wheel. From several articles on conservative websites about the SVB matter that I’ve read, many commenters are wondering if this lack of oversight has something to do with a sneaky push for digital currency. A few pointed to a recent sneaky attempt by someone or some group trying to get digital currency started in, of all places, conservative South Dakota. Fortunately, SD Gov. Kristi Noem stopped it. But apparently she told Tucker Carlson that this nonsense was being attempted in nineteen other states. Scary stuff. I know that Dan Denning closely watches the digital currency matter, so I’m sure he’d let us know if he thought there was something to bank failures and digital currency; or, if this was just another conspiracy theory. Of course, it takes time to connect any dots here because of the complexity of financial matters. (And Dan’s reporting on digital currency is one of many reasons why BPR is such a valuable service.)
Damn, this feels a lot like 2008 - "nothing to see here folks, the problem's well and truly contained, the banking system is totally sound"- and they think no-one remembers. Maybe, they're right, but I'm sure there's a saying about repeating the same thing and expecting a different result, just can't remember what it is!!! Especially as this time around the problem is so much worse
These (crackling crack) “troubles” are reflected here - https://www.usdebtclock.org/cbo-omb-gop-budget-estimates.html - Note: the entry entitled “debt per citizen”. My government took it upon itself (to leverage once upon a time solid GDP) to issue U.S. Treasury Bills, Bonds and Notes. Ergo, the burden is put upon whom? In so doing, my government is insolvent is it not? When outflow exceeds inflow, there is the “deficit”. And if readers check the debt clock, don’t miss the trip all the way to the bottom to see the “Debt to GDP Ratios”.
Nothing material has changed in decades. “There are decades where nothing happens; and there are weeks where decades happen” – Vladimir Ilyich Lenin.
I cannot help chuckle to myself from time to time thinking about “full faith and credit of the issuer” (governmental [muni, state, fed] borrowing power) which pledges to fulfill its payment (risk-free rate + a premium determined by “riskiness”?) obligations in a “timely manner”…what if that payment is 30-60-90 days (or more) late? Or not at all forthcoming .
What if America’s taxpayers took a page from the government’s own playbook. Namely, send a handwritten “pledge” I.O.U. payable to IRS paper clipped to a tax return; and wait patiently for one of those 87,000 new armed IRS Agents to stop by for a visit. Facetiously speaking of course, what if +/-50% of US taxpayers wanted to simultaneously say something important to their Congress persons, Senators, the POTUS and cabinet…and the minions of bureaucrats.
And what if all those, 50% of taxpayers, in solidarity communicated completely silently, whereby their actions were telegraphed only by the absence of any mailbags whatsoever, no letters, no texts, no phone calls, and a total void of eFiling returns on the arbitrary April 18th… a choosing of some alternative “timely manner” of one’s own choosing rather than that by dictum.
In a letter from Thomas Jefferson sent to James Madison in 1787, Jefferson wrote, “What country can preserve its liberties if their rulers are not warned from time to time that their people preserve the spirit of resistance.”
The Honorable Judge Learned Hand went on to become a U.S. Supreme Court Justice. “In America, there are two tax systems; one for the informed and one for the uninformed. Both are Legal.” As a preeminent jurist, Mr Hand also informed, “Anyone may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one’s taxes.” Moreover Mr Hand remarked, “…(T)here is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible.”
In a 5th Generation Warfare world the citizens are kept in the dark about everything important. If only it were so simple as not having the lights on. Our eyesight would eventually adjust and we could figure out how to grope around in the dark. But in our brave new world we have narratives, half-truths, limited hangouts, truth packaged with a lie, the lie deliberately exposed, discrediting the truth which was the goal all along ..... ad infinitum ad nauseum. Everything is upside down. Joseph Goebbels would the vapors and vertigo, and pass out.
I agree with Bill , that’s just the beginning but not the breaks that will cause the collapse of the equities and bond market ... but yes the prémices .
The ironic insanity of today’s government incompetence can be truly overwhelming. Best to just laugh in the face of it. I like your “new and improved positive spin”.😀
Literally spilled my coffee at "a person capable of tying his shoelaces" metaphor. Thank you Bill for the wholeheartedly laugh. You're awesome!
Bill asks why so many bank regulators were asleep at the wheel. From several articles on conservative websites about the SVB matter that I’ve read, many commenters are wondering if this lack of oversight has something to do with a sneaky push for digital currency. A few pointed to a recent sneaky attempt by someone or some group trying to get digital currency started in, of all places, conservative South Dakota. Fortunately, SD Gov. Kristi Noem stopped it. But apparently she told Tucker Carlson that this nonsense was being attempted in nineteen other states. Scary stuff. I know that Dan Denning closely watches the digital currency matter, so I’m sure he’d let us know if he thought there was something to bank failures and digital currency; or, if this was just another conspiracy theory. Of course, it takes time to connect any dots here because of the complexity of financial matters. (And Dan’s reporting on digital currency is one of many reasons why BPR is such a valuable service.)
That Ukrainian oligarch must have had a hell of crew trained in deep sea demolition. Great journalism NYT!
Damn, this feels a lot like 2008 - "nothing to see here folks, the problem's well and truly contained, the banking system is totally sound"- and they think no-one remembers. Maybe, they're right, but I'm sure there's a saying about repeating the same thing and expecting a different result, just can't remember what it is!!! Especially as this time around the problem is so much worse
I’d lean to the 85 yr old and then consider my response be moved from 1/2 assed to 3/4 assed if I were wrong.
Nice to find out as I scanned my accounts that I owed shares in all 3 of these banks.
Guess I wasn't in full safety mode.
Far offset by the rise in gold and silver today though.
As Mr Bonner points out, ©️Having created a dangerous and debilitating debt bubble, the Fed is now determined to take the air out of it…as long as higher interest rates don’t cause too much trouble.
These (crackling crack) “troubles” are reflected here - https://www.usdebtclock.org/cbo-omb-gop-budget-estimates.html - Note: the entry entitled “debt per citizen”. My government took it upon itself (to leverage once upon a time solid GDP) to issue U.S. Treasury Bills, Bonds and Notes. Ergo, the burden is put upon whom? In so doing, my government is insolvent is it not? When outflow exceeds inflow, there is the “deficit”. And if readers check the debt clock, don’t miss the trip all the way to the bottom to see the “Debt to GDP Ratios”.
Nothing material has changed in decades. “There are decades where nothing happens; and there are weeks where decades happen” – Vladimir Ilyich Lenin.
I cannot help chuckle to myself from time to time thinking about “full faith and credit of the issuer” (governmental [muni, state, fed] borrowing power) which pledges to fulfill its payment (risk-free rate + a premium determined by “riskiness”?) obligations in a “timely manner”…what if that payment is 30-60-90 days (or more) late? Or not at all forthcoming .
What if America’s taxpayers took a page from the government’s own playbook. Namely, send a handwritten “pledge” I.O.U. payable to IRS paper clipped to a tax return; and wait patiently for one of those 87,000 new armed IRS Agents to stop by for a visit. Facetiously speaking of course, what if +/-50% of US taxpayers wanted to simultaneously say something important to their Congress persons, Senators, the POTUS and cabinet…and the minions of bureaucrats.
And what if all those, 50% of taxpayers, in solidarity communicated completely silently, whereby their actions were telegraphed only by the absence of any mailbags whatsoever, no letters, no texts, no phone calls, and a total void of eFiling returns on the arbitrary April 18th… a choosing of some alternative “timely manner” of one’s own choosing rather than that by dictum.
In a letter from Thomas Jefferson sent to James Madison in 1787, Jefferson wrote, “What country can preserve its liberties if their rulers are not warned from time to time that their people preserve the spirit of resistance.”
The Honorable Judge Learned Hand went on to become a U.S. Supreme Court Justice. “In America, there are two tax systems; one for the informed and one for the uninformed. Both are Legal.” As a preeminent jurist, Mr Hand also informed, “Anyone may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one’s taxes.” Moreover Mr Hand remarked, “…(T)here is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible.”
In a 5th Generation Warfare world the citizens are kept in the dark about everything important. If only it were so simple as not having the lights on. Our eyesight would eventually adjust and we could figure out how to grope around in the dark. But in our brave new world we have narratives, half-truths, limited hangouts, truth packaged with a lie, the lie deliberately exposed, discrediting the truth which was the goal all along ..... ad infinitum ad nauseum. Everything is upside down. Joseph Goebbels would the vapors and vertigo, and pass out.
Great explanation for SVB failure. Find it here Michael Green.
https://michaelwgreen.substack.com/p/the-valley-of-despair?utm_medium=email
I think you meant to say: ...as long as HIGHER rates don't cause too much trouble?
I agree with Bill , that’s just the beginning but not the breaks that will cause the collapse of the equities and bond market ... but yes the prémices .
Can you hear that?
It's the receptionist shouting "NEXT!"...
Crack..Crack...Crack....just like that darn rock chip in the windshield. Where will it stop?
It sounds like I need a whole new set of friends that lobby for a living.
Why do you designate me as a “free subscriber” when I’m a paid up subscriber? Jim.Leonard.1951@gmail.com
The ironic insanity of today’s government incompetence can be truly overwhelming. Best to just laugh in the face of it. I like your “new and improved positive spin”.😀