Financial Armageddon!!

[chook]

Their business model is not sustainable under current conditions.

They sold their money for a long term at a fixed price to their customers. (I.e. long term mortgages with fixed interest rates)

Meanwhile their costs have increased and are now loss making.

The mortgage borrowers may like their long term fixed rate mortgages, but that has meant that their lender will go bankrupt due to the lender taking on interest rate risk.

People are unaware of financial stability risks until banks go bankrupt.

First Republic bank shares $16 down to 42 cents in 2 days! 100 billion in deposits withdrawn,...they are gone

[Chris W]

First National bank shares $16 down to 42 cents in 2 days! 100 billion in deposits withdrawn,...they are gone

1) First Republic has gone into receivership.
2) the receivers, FDIC, has sold the bank to JPMorgan Chase.

https://www.cnbc.com/2023/05/01/firs...k-failure.html


The transaction will cost the FDIC’s Deposit Insurance Fund an estimated $13 billion, according to the regulator. By way of comparison, the SVB process cost the fund about $20 billion.

[donna]

^^ Saw that on Reuters earlier today. 3rd bank to collapse within a month I think.

[Perry]

Seems it has worsened, overnight (NZ time) as regional banks stocks plunge. Tried to look up a couple of other items but they were behind anti-ad-blocker s'ware. E.g. https://www.zerohedge.com/markets/st...banks-freefall

What might happen in NZ, I wonder?

[chook]

Seems it has worsened, overnight (NZ time) as regional banks stocks plunge. Tried to look up a couple of other items but they were behind anti-ad-blocker s'ware. E.g. https://www.zerohedge.com/markets/st...banks-freefall

What might happen in NZ, I wonder?

Is this what you are talking about..


As the snowball continues to roll down the mountain this whole thing is turning into a gigantic nightmare for the fed, banks are failing, the debt ceiling limit has been reached again (they only lifted it not long ago) and they are looking to raise rates again. Dont be fooled though if they lower rates they are equally screwed. I can see big problem in the next couple of months. Along with all of this..

Car loans are defaulting at an alarming rate
Commercial realestate is collapsing,
credit card debt is soaring (americans are paying for stuff on cards as they cant afford to pay normally)

Plus a whole bunch more problems I cant be bothered listing.

Gold & Silver ladies & Gentlemen

[Perry]

Gold & Silver ladies & gentlemen

Depends on the degree of severity of whatever happens.
Food could be even more precious.
Same for medicines;
The means to make a fire;
Then the means to defend what you've got stored;
One cannot eat metals of any sort.

[chook]

For those of you who dont know whats going on with US debt currently, look at the steepness of this curve! they are debating raising the debt ceiling again, which they eventually will do, a road to no where, but either way the consequences are very very bad.

NZ appears to be following in our big brothers foot steps..

[Jeffa]

For those of you who dont know whats going on with US debt currently, look at the steepness of this curve! they are debating raising the debt ceiling again, which they eventually will do, a road to no where, but either way the consequences are very very bad.

NZ appears to be following in our big brothers foot steps..

First country to have it's debt bubble explode wins the golden potato award!

I have no doubt they will raise the US debt ceiling, why wouldn't you if you have the reserve currency of the world, they can just print some more make believe money to pay it off! Who cares if the tax slaves are loosing their purchasing power

If anyone disagrees the US has a nuclear warhead pointed at their letter box!

[chook]

And these are the people who are in charge of your country! NZ is just as bad.

[Skeptic]

Those debt figures are meaningless in absolute terms. How do they look as a percentage of gdp?

[donna]

Warren Buffet says - why have a debt ceiling?