Surviving the crash

[GWS]

Who was the third one?

SVB was Friday. Signature was yesterday (thought they were the second one to fail recently). Who's on third?

Never mind... Never heard about Silvergate Bank, who was apparently the first to close last week...

So, Silvergate was the first, then SVB and Signature... Wonder why I never heard about Silvergate before hearing about SVB and Signature...???

Nah! Signature is the third largest bank failure. There is no third bankfailure.

Yet

 

[gmerkt]

Well, I climbed out of bed this AM and the world hadn't come to an end.

It occurred to me that the give and take of finance is like a game of marbles. As the game goes on, some kids wind up with more marbles than others. Some who are unlucky or lack skill may wind up with none. That's how life works. But since 2008, we're in a new era. Back to the game of marbles, now when some kids run out of marbles, a rich uncle comes along with a coffee can full of new marbles and passes them out to the losers. So the game can go on. But later when the trading of marbles takes place, it takes more of them to swap for a well-worn ball bat than it did before.

Here we have money in CD's; way before this I made it a practice not to tie my funds up in any single institution. Just as a matter of precaution. I'm not particularly worried. Because banks lose share value doesn't affect me. Not so long as the FDIC has recourse to what amounts to unlimited funds. This time around, the FDIC is releasing funds way faster than it did during the Lincoln Savings fiasco. In that matter, some people had to wait weeks or months to cash out.

The US national debt is, what, $30 something trillion, it's pretty unimaginable to most people. Including the government policy makers, they no longer comprehend the amount nor the eventual, inevitable consequences. So when they need to dip into the bottomless honey pot, they dive right in. The USD has been Monopoly Money for some time now. When houses cost $600K and new Ford Broncos cost $60K, you know it's bad. What is needed is a harsh reset to reality. But this is just what the public policy has been determined to avoid.

 

[sobo]

Nah! Signature is the third largest bank failure. There is no third bankfailure.

Yet

From Wikipedia, regarding Silvergate:

"...In late 2022 — following a fall in cryptocurrency prices and the collapse of many cryptocurrency exchanges and schemes such as FTX — concerns were raised about potential impacts on Silvergate due to loss of deposits and credit exposure from SEN leverage, as well as potential impacts of Silvergate's issues on the wider cryptocurrency ecosystem due to Silvergate's key role in it.[5]​[6]​[8]​[7]​ Some short sellers raised the prospect of a bank run.[6]​ The share price of Silvergate had fallen 89% from its November 2021 all-time-high to $25,[when?]​ and its deposits fell to $9.8 billion.[4]​[5]​ Silvergate has reported[when?]​ that it has adequate liquidity, that it only held FTX deposits, and that it was not exposed to FTX via lending.[8]​[5]​ Senators Elizabeth Warren, Roger Marshall, and John Kennedy requested that the bank explain its relationship to FTX in December 2022.[17]​ By December 2022 deposits at Silvergate had fallen to $3.8 billion.[18]​

On March 8, 2023, it was announced that Silvergate Bank would wind down its operations and liquidate.[9] "​


So, maybe not "failure", per se, but "...wind down its operations and liquidate..." sounds pretty close. End result is basically the same - it's gone...

 

[sobo]

Well, I climbed out of bed this AM and the world hadn't come to an end.

What is needed is a harsh reset to reality.

That right there...

But this is just what the public policy has been determined to avoid.

Because changing that public policy would cost the changers a multitude of votes. And hence, the problem in which we find ourselves...

 

[gmerkt]

Because changing that public policy would cost the changers a multitude of votes. And hence, the problem in which we find ourselves...

That's correct, they none of them want to be the next Herbert Hoover.

 

[Alexx1401]

From Wikipedia, regarding Silvergate:

"...In late 2022 — following a fall in cryptocurrency prices and the collapse of many cryptocurrency exchanges and schemes such as FTX — concerns were raised about potential impacts on Silvergate due to loss of deposits and credit exposure from SEN leverage, as well as potential impacts of Silvergate's issues on the wider cryptocurrency ecosystem due to Silvergate's key role in it.[5]​[6]​[8]​[7]​ Some short sellers raised the prospect of a bank run.[6]​ The share price of Silvergate had fallen 89% from its November 2021 all-time-high to $25,[when?]​ and its deposits fell to $9.8 billion.[4]​[5]​ Silvergate has reported[when?]​ that it has adequate liquidity, that it only held FTX deposits, and that it was not exposed to FTX via lending.[8]​[5]​ Senators Elizabeth Warren, Roger Marshall, and John Kennedy requested that the bank explain its relationship to FTX in December 2022.[17]​ By December 2022 deposits at Silvergate had fallen to $3.8 billion.[18]​

On March 8, 2023, it was announced that Silvergate Bank would wind down its operations and liquidate.[9] "​


So, maybe not "failure", per se, but "...wind down its operations and liquidate..." sounds pretty close. End result is basically the same - it's gone...

Not to mention since they have said no matter how much you had in a bank that shuts down you get paid. No bail out, just raise fee's. Ok sounds great. One problem is risk. Once again they are telling people who made stupid choices not to worry, no pain will be felt. So guess who will keep making stupid choices and taking big risks? That guy on Tucker was a great example. He can take to the air and make inane comments about "good safe investments" and be wrong over and over because nothing happens to him. He still has his job and will pretend he never said to invest in stuff that went under. If pressed he can just blame Trump and many will nod their head and agree as they take his advice yet again.
I just took some out of my 401K again and put it in metal. Wife keeps frowning when I do but I keep telling her the damn money in there is going down at 8% right now. Its losing on top of inflation so I don't see it as risk to just buy more metal.

 

[sobo]

Not to mention since they have said no matter how much you had in a bank that shuts down you get paid. No bail out, just raise fee's. Ok sounds great. One problem is risk. Once again they are telling people who made stupid choices not to worry, no pain will be felt. So guess who will keep making stupid choices and taking big risks? That guy on Tucker was a great example. He can take to the air and make inane comments about "good safe investments" and be wrong over and over because nothing happens to him. He still has his job and will pretend he never said to invest in stuff that went under. If pressed he can just blame Trump and many will nod their head and agree as they take his advice yet again.

You're talking about Jim Cramer, yes? The idiot CNBC investing adviser who gets it wrong 8 out of 10 times? What a buffoon...

I just took some out of my 401K again and put it in metal. Wife keeps frowning when I do but I keep telling her the damn money in there is going down at 8% right now. Its losing on top of inflation so I don't see it as risk to just buy more metal.

You're paying the income tax on that, too, yunno, so that's an added cost that your wife's probably on you about. But you're losing 8% (plus a tax you'd eventually have to pay anyway), so even with Ag at 5.5% ↑ and Au at ~2% ↑, it's still probably a better bet than just letting it dissolve away in your 401k. You are the only one who can do that math on your scenario and make that decision...

 

[Burt Gummer]

Just FYI -

Wells Fargo had a central "computer glitch" and thousands of personal and business accounts have incorrect balances now.

Repeat: Save/PDF/Print any statements of balances from any financial institution.

 

[Lilhigbee]

If anyone thinks Wells Fargo has a "glitch", they've got their head in.... the sand. Sand, yeah, that's it. I had trouble with them a few years ago and had to use my real bank to sort out the problem. The lady at my bank pointed out what was known amongst banking circles as "Wells Fargo's Great Eight", the eight times they had been sued and fined for fraudulent banking practices up to that time. We're aren't talking penny-ante here, we're talking fines in the millions of dollars, repeatedly. They have since racked up a few more, including the largest fine in banking history a year or two ago. No, they are as crooked as they come, and just consider the fines a cost of doing business.

https://www.cnn.com/2020/02/21/business/wells-fargo-settlement-doj-sec/index.html

https://www.cnn.com/2022/12/20/investing/wells-fargo-cfpb-foreclosure-fine/index.html

 

[The Heretic]

If anyone thinks Wells Fargo has a "glitch", they've got their head in.... the sand. Sand, yeah, that's it. I had trouble with them a few years ago and had to use my real bank to sort out the problem. The lady at my bank pointed out what was known amongst banking circles as "Wells Fargo's Great Eight", the eight times they had been sued and fined for fraudulent banking practices up to that time. We're aren't talking penny-ante here, we're talking fines in the millions of dollars, repeatedly. They have since racked up a few more, including the largest fine in banking history a year or two ago. No, they are as crooked as they come, and just consider the fines a cost of doing business.

https://www.cnn.com/2020/02/21/business/wells-fargo-settlement-doj-sec/index.html

https://www.cnn.com/2022/12/20/investing/wells-fargo-cfpb-foreclosure-fine/index.html

Given their history (which has been widely reported), I am surprised anybody would bank at Wells Fargo anymore.

 

[Mono1]

Drop that deuce where and when the urge hits me

A Cleveland Steamer!!

 

[sobo]

Drop that deuce where and when the urge hits me

A Cleveland Steamer!!

Um, that's not exactly what a Cleveland Steamer is... But in order to save the thread, I won't explain.

Check out Urban Dictionary for the real definition...

 

[Longwalkhome]

I think to better illustrate survival in a crash I want to point out what's different and why you need to be up on your abilities to protect your families.

Everyone watching the news on the bank crash sees now the government stepping in to protect the elite class from financial ruin.

Compare this with what the federal government is doing about the Ohio train wreck that have put thousands of every day Americans not only in financial ruin but possible death.

I learned way back when Oregons communities were destroyed by government over the spotted owl that it's up to you to protect yourself from government actions.

Last couple of years it's been more and more government actions on your gun rights, think today about what tommorrow brings.

 

[Jay Walk]

I think to better illustrate survival in a crash I want to point out what's different and why you need to be up on your abilities to protect your families.

Everyone watching the news on the bank crash sees now the government stepping in to protect the elite class from financial ruin.

Compare this with what the federal government is doing about the Ohio train wreck that have put thousands of every day Americans not only in financial ruin but possible death.

I learned way back when Oregons communities were destroyed by government over the spotted owl that it's up to you to protect yourself from government actions.

Last couple of years it's been more and more government actions on your gun rights, think today about what tommorrow brings.

East Palestine voted 71.5% R.
Not that there's anything wrong with that.

 

[Mono1]

You're talking about Jim Cramer, yes?

There is actually an investment fund out there now that is set up to take whatever Cramer says and take positions that are the exact opposite. Pretty funny.

 

[Mono1]

 

[Alexx1401]

You're talking about Jim Cramer, yes? The idiot CNBC investing adviser who gets it wrong 8 out of 10 times? What a buffoon...

You're paying the income tax on that, too, yunno, so that's an added cost that your wife's probably on you about. But you're losing 8% (plus a tax you'd eventually have to pay anyway), so even with Ag at 5.5% ↑ and Au at ~2% ↑, it's still probably a better bet than just letting it dissolve away in your 401k. You are the only one who can do that math on your scenario and make that decision...

Yep I warned her about the tax hit. For every 1K I take they give $250 to the IRS that I will see how it shakes out next year. I look at it going down in value at 8% plus inflation is "claimed" to be at least that and I know that's a lie. So it's losing about 20% a year right now sitting there. So far the part I am cashing out is just money my employer put in anyway so I am fine with it. The way this if going sure looks like we are going to see Carter like time ahead. I have told a few of the guys I work with they never lived through whats coming up. They think the way it is now is how its always been since this is all they have ever seen. I keep telling them they may well get to see what those of use who were trying to find work in the 70's and early 80's saw.

 

[Longwalkhome]

East Palestine voted 71.5% R.
Not that there's anything wrong with that.

Thread isn't about politics, it about survival. However knowing where your families biggest risk come from is important. At this time government means both parties so let's leave party politics out of this.

 

[Alexx1401]

Thread isn't about politics, it about survival. However knowing where your families biggest risk come from is important. At this time government means both parties so let's leave party politics out of this.

Yes it is about survival and I am NOT a GOP fan BUT, anyone who wants to look its easy to see. Look at cities that have had one party rule for decades. Find one that is not a total crap hole when one party that claims they are for the "working people" have run the place for a long time. Amazing how the same people getting hosed vote for the same people hosing them decade after decade then blame people who have no control of the place they live. For us? I like freedom including gun freedom. One party here in the state has been against me having that freedom all my life yet many gun owners still vote for them. Every new gun law they pass effects criminal scum not at all as they put more on me. The one not committing the crime. So working out great here.

 

[Longwalkhome]

Yes it is about survival and I am NOT a GOP fan BUT, anyone who wants to look its easy to see. Look at cities that have had one party rule for decades. Find one that is not a total crap hole when one party that claims they are for the "working people" have run the place for a long time. Amazing how the same people getting hosed vote for the same people hosing them decade after decade then blame people who have no control of the place they live. For us? I like freedom including gun freedom. One party here in the state has been against me having that freedom all my life yet many gun owners still vote for them. Every new gun law they pass effects criminal scum not at all as they put more on me. The one not committing the crime. So working out great here.

I just follow the rules so I am allowed to have fun, share, communicate and debate. One slip and everything is thrown out so I don't put political commentary in the thread. Folks know for themselves what they want as far as gun rights so it is what it is. Surviving what's next is the focus in my opinion but I sure enjoy the input of thinking from all the members here.

We are a community.