Comments by "MarcosElMalo2" (@MarcosElMalo2) on "Peter Zeihan || The Financial Crisis of 2023?" video.

  1. Peter is being a little idiotic. He’s suggesting that if your business needs $5 million cash kept in the bank for your operations, you should keep it with 20 different banks (to stay within the $250,000 FDIC limit).
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  2. This isn’t a bail out.
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  3. Yeah, I think it’s ridiculous to talk about “moral hazard” in the context of depositors. We might as well be talking about the moral hazard of getting out of bed in the morning. Covering the depositors maintains the business environment. And it’s not like the bank assets are worthless. The issue is that they’re illiquid. Peter is getting out of his lane and it shows. Unfortunately there was a demand that he address the “crisis”. Apparently many subscribers are financial collapse porn devotees.
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  4. So, you’re bearing the cost because you’re a bank customer. And you’re a tax payer. And I suppose you also drive an automobile. Why aren’t you upset that you bearing the cost as an automobile owner? Because it’s not relevant, no more relevant than your being a tax payer. If you don’t think it’s worth it as a bank customer, if you feel unfairly put upon, stop using banks. Or just, you know, keep complaining about irrelevant stuff.
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  5. The SVB depositors are going to be indemnified by the assets held by the bank. The FDIC will either take these assets and liquidate them on a rolling basis or find a buyer for the [assets + liabilities], and the buyer will make the depositors whole. Some people seem to think that the assets held by the bank just vanished, or that they’ve lost a huge amount of value. SVB suffered a liquidity crisis. There is no indication that there was an issue with the quality of the investments (bad loans, high risk investments gone bad). The problem looks to be that they invested in long term bonds that couldn’t be quickly converted without taking a loss (after interest rates went up). The stupidity here is more in how SVB allocated its investments into bonds, not so much companies that kept accounts with more than $250,000.
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  6.  @sunspot42  100% correct that the value will be recovered when the bonds reach maturity.
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  7. That wet sound you hear is thousands of YouTubers fapping away to financial collapse porn.
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  8. You’re probably under the impression that the government action is a bail out of the bank. It’s not. These banks are not being saved. They’re kaput. Two of the banks are in receivership and SVB will either be bought by another bank (because its assets are basically sound) or also be liquidated. If you want a better understanding of the situation (or any understanding), read up on bonds. This might give you enough basic information to understand what happened here.
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  9. Imagine being one of those who panicked, withdrew their life savings, and now have to go wait in line to deposit back their $47.65.
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  10. The market is down negative 500 plus points after hours, you say? What’s the market volume? Also the bass and treble?
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  11. It was Congress that passed the legislation, Trump signed it. Iirc it was bipartisan.
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  12. The moral hazard of depositing money in the bank?
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  13. You are very detail oriented, aren’t you.
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  14. Too many people fapping off to disaster porn, looking for new material. Unnnhhh, banks are failing, uhhhhnhhn, systemic collapse, ugghhhhhr 🤤💦
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  15. The value of the assets are sufficient to cover the liabilities. The problem is that the assets can’t be quickly converted to cash without losing that value. So the deposits can be covered 100% by someone willing to swap cash for value. This is why SVB’s crisis was liquidity.
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  16. I’m not getting up out of bed this morning because of the moral hazard. Goddamn, if the moral hazard of depositing money in a bank account is the equivalent to the risk of investing, things have gotten very bad.
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  17. No, that’s not what it did. If you think so, then you already believed it and this didn’t expose anything to you. This just confirms what you already believed.
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  18. What does your question even mean?
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  19. Is that true? Where would I find that documented? Or are you just commenting for the sake of commenting and you don’t really know what you are talking about?
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  20. That’s the thing you seem to have missed. The banks are being allowed to fail. This is not a bail out of the banks.
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