Something is going on in the financial sector

Given the problems with SVB and Credit Suisse, it's probably not a surprise that the banking index is showing stress.

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But what is going on in short-to-medium term Treasuries is far more disturbing.

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Cassiodorus's picture

Or merely third-world defaults in the face of escalating interest rates?

Joltin' Joe's a real President, fo' sho'...

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6 users have voted.

"Israel is in the process of destroying itself" -- Miko Peled

@Cassiodorus

of the virus, possible synthetic creation of the virus in a U.S. lab, possible vaccine lethality, death of a million Americans, Bakhmut slaughter, no Ukraine offensive, Ukraine out of ammunition, war costs ballooning, drone blown down by fuel exhaust, Congressmen calling for armageddon, countless jerk thought police causing social media to flush the Constitution, Hunter Biden suing the repair shop, bailouts for people who don't need bailouts, the U.S. blowing up Europe's gas supply, and the University of California's Labor Center reporting that state-employed essential workers cannot survive on their wages in California. It's a lot, and it could be a tipping point, a crisis of confidence, a total loss of confidence. There never was any confidence.

And what do we get as a sign that our leadership knows what to do?

STORMY DANIELS.

Fucking Stormy Daniels. To the rescue.

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13 users have voted.

@Linda Wood
Endless LIES will be the death of us.

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9 users have voted.

“What the herd hates most is the one who thinks differently; it is not so much the opinion itself, but the audacity of wanting to think for themselves, something that they do not know how to do.”
-Arthur Schopenhauer (1788-1860)

A couple of crutches broken, the Fed overplayed their hand, funny money not able to
hold their grips on more speculative token money? What is your dollar worth today?
Bankers are stressed because they haven't the liquidity to sustain collapse.

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6 users have voted.

I'll do it for you. The banks bought bonds at a low rate and with the FED raising interest rates the banks are losing money.

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11 users have voted.

@JtC And there is the worry about a snowball effect on other small-midsize banks which could make the situation much worse.

That said, as a complete non-expert in this area, I just look for what I am supposed to do to protect myself financially. So far, the answers I've seen have been something of a muddle. Perhaps the thread author will chime in later with his thoughts when he has more time or energy.

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3 users have voted.

I can't blow up the charts but it looks like one and two year treasuries dropped from around 5% to 4% or 3.something. Maybe signaling a pause in rate increases by the fed? Not sure what the problem is, good for people who are paying a mortgage. Credit card debt is so usurious I wouldn't think a percent would matter. I don't have much in the banking sector.

I have to say this whole SVB and other banks thing has left a bad taste in my mouth. I don't like any of the players. VC types, congress and almost all of them were in on the deregulation for campaign kick backs, banksters, Silicon Valley businesses, the whole lot of them can to take a long walk short pier.

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11 users have voted.

@ban nock
Moves this big, happening this quickly, is a BIG deal.

Banks lend against a relatively small amount of liquidity (cash). When many depositors withdraw their cash to buy higher yield US Treasuries, the bank’s ability to continue making loans (and profits) STOPS and their ‘balance sheet’ is no longer in balance.

When word gets out, a bank run will likely ensue. When more people panic, more bank runs ensue. This progression can happen very quickly if bank and government reassurances are not quick and effective.

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10 users have voted.

“What the herd hates most is the one who thinks differently; it is not so much the opinion itself, but the audacity of wanting to think for themselves, something that they do not know how to do.”
-Arthur Schopenhauer (1788-1860)

@ovals49 If the banks continually get bailed out and there's no accountability for these banksters, then the public loses confidence in the banks to behave responsibly.

So more bank runs, more financial disasters.

Some states put teenagers in jail for 10 years for smoking a joint. It's time Banksters got even harsher time behind bars for smoking the economy.

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6 users have voted.

the top right of each chart
the price doesn’t change high
to low open to close
both charts % change a third
or less one percent not sure
what That means but looks
like something might have locked up?

ever see a shattered sun gear?
Monday could be interesting

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7 users have voted.

Ya got to be a Spirit, cain't be no Ghost. . .

Explain Bldg #7. . . still waiting. . .

If you’ve ever wondered whether you would have complied in 1930’s Germany,
Now you know. . .
sign at protest march

https://www.ft.com/content/dda3415a-0e23-4eb7-8e68-fec392ae9a5a?segmentI...

Interesting that the writer takes "deglobalisation" as a given. The "extremely adverse demographic" factor in China I understand. 50% US office space vacancy good, house people. Also the global supply shock from the Russian war in Ukraine.

But this is the part I liked,

"Other factors that are pushing up long-term real rates include the massive costs of the green transition and the coming increase in defence expenditure around the world. The rise of populism will presumably help alleviate inequality, but higher taxes will lower trend growth even as higher spending adds to upwards pressure on rates."

When former IMF officials recognise the green transition and the rise of populism as inevitable, it's a good thing.

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4 users have voted.

deteriorate everyone will park
their cash in the big four tbtf banks
for ‘safety’

when that happens they can impose
cbdc as a provision of their
terms and conditions no gov’t involved

fascism you are Here

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5 users have voted.

Ya got to be a Spirit, cain't be no Ghost. . .

Explain Bldg #7. . . still waiting. . .

If you’ve ever wondered whether you would have complied in 1930’s Germany,
Now you know. . .
sign at protest march

@Tall Bald and Ugly I don't speak in alphabet soup. What are your strings of consonants?

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2 users have voted.

@Battle of Blair Mountain
Tbtf-Too big to fail
Cbdc-central bank digital currency

Sorry, thought they were common knowledge

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3 users have voted.

Ya got to be a Spirit, cain't be no Ghost. . .

Explain Bldg #7. . . still waiting. . .

If you’ve ever wondered whether you would have complied in 1930’s Germany,
Now you know. . .
sign at protest march