Comments by "nuqwestr" (@nuqwestr) on "US bank failures: What is being done to avoid another 2008 financial crisis? | DW News" video.

  1. Bad bet on 10-year bond because inflation was not transitory, would have been better to hedge on the inverted curve yield between long term and short term.
    2
  2. Yes, Fed just created program to provide liquidity as loans against assets valued at par, a safety valve. If SVB had not panicked over their bad bet, the run would not have happened.
    2
  3. It's not, bank assets bought by competitor.
    1
  4. Yes, and SVB CEO Becker is close with Gov Newsom and his wife who runs a DEI nonprofit with board members from SVB. Go woke, go broke.
    1
  5. Inverted curve, no one has mentioned it, or that SVB bet on inflation being transitory and lost. Fed just put in place a short-term loan program to provide temp liquidity for banks facing similar issue, so panic button in place.
    1
  6. not the same, banks have plenty of assets, temp liquidity issue Fed just created a program for.
    1
  7. Fed just instituted program which will provide temp liquidity for banks facing same situation, a panic valve is now in place.
    1
  8. No, not it, SVB believed inflation was transitory and made bets on treasure bonds, bets failed and they panicked. Federal Reserve just instituted program that will be a safety valve for future panic.
    1
  9. Fed is doing just that, temp funding based on assists held at par, a safety valve, done deal.
    1
  10.  @JerehmiaBoaz  no, not it.
    1
  11.  @manishyadav4052  nonsense
    1
  12. SVB used depositor money to invest in 10-year US treasury bonds in the belief that inflation was transitory. The bet turned bad when inflation went long, and 10-year bond yields went down as short-term bond yields went up, called an inverted curve. Depositors could make more money on short-term bonds so wanted out al at once, bank had assets but no cash, forced to sell bonds and securities at a loss. Because assets good, SVB taken over by other banks and no one got hurt. The Fed Reserve just created a program which will provide liquidity to other banks that face same issue. So a plan in place.
    1
  13. 25bps instead of 50bps, my prediction. inflation still around 6% annualized. lot of trash talk here by no things.
    1
  14. US Fed Reserve instituted loan program to give liquidity to small banks that may face similar issues related to inverted treasury bond yields between short and long term bonds. Reading this thread assures me that facts don't matter, even if they are a keystroke away, People love to obsess on fear, and why the media feeds it to them.
    1
  15. Ironically, the CAO at SVB used to be with Lehman Bros!
    1
  16. SVB used depositor money to invest in 10-year US treasury bonds and Mortgage Back Securities in the belief inflation was transitory. The bet turned bad when inflation went long, and 10-year bond yields went down as short-term bond yields went up, called an inverted curve. Depositors could make more money on short-term bonds so wanted out all at once, bank had assets but no cash, forced to sell bonds and securities at a loss. Because assets good, SVB taken over by other banks and no one got hurt. The Fed Reserve just created a program which will provide liquidity to other banks that face same issue. So a plan in place.
    1
  17. SVB bet on inflation being transitory, they lost that bet.
    1
  18. rates will still go up, inflation still hot and why the bond yield curve is inverted. few on this thread understand what happened at SVB.
    1
  19. false, broken bearing on train, not brakes, 2018 was bi-partisan bill supported by Barney Frank, author of the Dodd-Frank bill, and he says SVB issue not related to 2018 modification. so you are incorrect on both counts
    1
  20. hardly, the banks have assets, short-term treasury bonds are selling well, and Fed just put in place a program to handle liquidity issue due to inverted yield curve. All being managed well.
    1
  21.  @chocolateearrings  banks already pay into FDIC, there may be a new tier insurance program put in place, but not yet. Chase has a short-term 4% CD offered, very popular.
    1