Comments by "David Himmelsbach" (@davidhimmelsbach557) on "Charles Schwab Closing Up Shops Announces Layoffs (More Bank Downgrades - Banking Crisis 3.0)" video.

  1. Your pitch is totally screwed up. Schwab DIDN'T commit customer monies -- it committed its OWN monies. Period. It bought DURATION. That's bond market lingo for going out on the maturity curve -- in any debt market -- especially Treasuries. Schwab made the EXACT SAME bone head move as SVB. They hold short term, even demand deposits, which are liabilities... While holding long term, debt based assets that they can't accelerate. This error is the subject of Banking 101 for Idiots. It's ALWAYS lethal. Schwab was not as crazy as SVB -- but is still destined to be burned. A portfolio maturity beyond ten-years is INSANE. To keep its depositors happy, Schwab will have to increase its payouts on deposits -- period. The brokerage arm will HAVE to subsidize the bank -- for years. It most likely can't get away with doing so. In all of your talking, it's not made clear exactly WHAT Schwab is holding -- Treasuries or Mortgages? If mortgages, at least there's the chance that compelled real estate sales will accelerate mortgage redemptions. But, I wouldn't bet on it. During rising interest rate eras, folks stay put. But, since Biden is hyper-inflating the money supply, strange things will begin to happen. This entire affair could disappear into the rear view mirror. Buying TD Ameritrade at this point was an insane act. You just know that the deal includes crazy amounts of "goodwill." The stock is a short. Bury will take note.
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