Who Else Is Ready For The Banking Crash And Ensuing Bailouts?

[seanD]

But didn't the wizards at these banks see the interest rates going up? Didn't they know that would tank bonds?

I honestly don't know. They likely had those assets before that happened. But let's not forget, the main crisis wasn't the assets they held, it was a sudden run on their bank that happened. And it looks pretty coordinated because a bunch high profile fund managers told their investors to pull out all at the same time. SVB had to panic sell their bonds, which hadn't matured yet at a loss, to make up for the cash that was darning from their system. Whether or not they would have been fine had they been able to allow those securities to fully mature is hard to say.

[CivilDiscourse]

Was Trump's banking deregulation to blame?

Bernie thinks so:

Statement by Bernie Sanders:

“Let’s be clear. The failure of Silicon Valley Bank is a direct result of an absurd 2018 bank deregulation bill signed by Donald Trump that I strongly opposed. Five years ago, the Republican Director of the Congressional Budget Office released a report finding that this legislation would ‘increase the likelihood that a large financial firm with assets of between $100 billion and $250 billion would fail.’

“Unfortunately, that is precisely what happened. During the debate over the legislation I said: ‘Are our memories so short that we learned nothing from the 2008 Wall Street crash? Have we learned nothing from the Savings and Loan disaster of the early 1990s or the thievery of Wells Fargo over the last couple of years or the dishonesty of Equifax or the accounting fraud at Enron and Arthur Anderson or the failure of Long-Term Capital Management or the billions of dollars in fines that financial institution after financial institution has paid out for illegal or deceptive activities?’ Sadly, the Republican Congress and the Trump Administration answered all of these questions with a resounding NO.

Oh, you mean the bipartisan deregulation bill that Trump signed?

[Gondwanaland]

I think they're saying they're only going to "bail-out" the depositors while allowing the bank itself to fail, instead of just giving the banks billions of dollars so they don't collapse like they did in 2008, which is actually what they should have did in 2008, and is mystifying why they didn't do it that way.

That sounds like what they're saying, and yeah I think that's far better than a straight up bailout like the idiots did in the last recession. Though that's just if they do what they say - something we need to keep an eye on because they're certainly prone to claiming one thing and then doing another behind our backs.

[Gondwanaland]

Oh, you mean the bipartisan deregulation bill that Trump signed?

Indeed it had democrat support in votes in both the Senate and the House. Of course, Starlight and Bernie won't admit that (though to be fair I doubt starlight has even the first clue about the 2018 law in question other than what Bernie told him and what the Young Turks are putting into his trough)

[Starlight]

Oh, you mean the bipartisan deregulation bill that Trump signed?

There were some corrupt Dems who signed on to the Republican trainwreck bill, yes.

As more information has come out about SVB it looks like there were three major contributing causes, and that Trump deregulation was one of them. So Bernie seems to have been correct on this. The other two causes seem to have been bad investment choices by the bank, and the CEO causing a run on the bank by overpublicizing what were only medium-level financial difficulties.

[Starlight]

When his whole shtick is socialism and how the rich take advantage of the poor when they should be footing the bill, and he owns 3 houses, is a multi-millionaire and charges people hundreds of dollars to listen to him give a speech on how bad capitalism is, how can anyone trust anything he says? He is a rank hypocrite. He is the epitome of the very type of person he is preaching against. He is like a preacher who openly sleeps with prostitutes who goes around preaching about chastity.

I can't tell if you're full trolling here or actually believe the crazy you're writing.

[Gondwanaland]

There were some corrupt Dems

Evidence for your pejorative?

who signed on to the Republican trainwreck bill, yes.

Trainwreck in what way? In that it did something your Young Turk friends told you to dislike?

As more information has come out about SVB it looks like there were three major contributing causes, and that Trump deregulation was one of them. So Bernie seems to have been correct on this. The other two causes seem to have been bad investment choices by the bank, and the CEO causing a run on the bank by overpublicizing what were only medium-level financial difficulties.

Bernie is dead wrong. It indeed has nothing whatsoever to do with the law in question. This is a repeat of the nonsensical claim about Trump's train stuff being the cause of the Ohio derailment. Nothing more than a lie.

[seanD]

There were some corrupt Dems who signed on to the Republican trainwreck bill, yes.

As more information has come out about SVB it looks like there were three major contributing causes, and that Trump deregulation was one of them. So Bernie seems to have been correct on this. The other two causes seem to have been bad investment choices by the bank, and the CEO causing a run on the bank by overpublicizing what were only medium-level financial difficulties.

If any skirting of regulation had anything to do with this (and it probably didn't), it was because they were a bunch of woke suck-ups to ESG that influenced regulation leniency.

[rogue06]

So you are saying that Biden's administration is actually going to do something right this time? Or at lease is claiming they will?

Likely it'll be like the colossal series of FUBARs that was the Afghan bugout -- old Joe will merely claim it's an "outstanding success" in spite of the facts.

Or like inflation leveled off and the duffer claimed that this meant inflation was now at zero percent.

Or like when they insisted that a multi-trillion dollar spending bill wouldn't cost the taxpayers a single cent.

IOW, expect them to lie.

[rogue06]

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[CivilDiscourse]

Here's my take. All those people NOW blaming Trump for this. Why didn't they try to fix it before hand? If these de-regulations were so bad, why didn't Bernie introduce legislation to fix it? Why didn't Warren? Same with the Train Regs....why didn't Biden's admin reverse that deregulation if they thought it was bad? They could have easily ATTEMPTED to fix these issues anytime in the past two years, but have not even tried.

Officer, I had my car for two years, but the last guy who owned it wore the brakes down. It's his fault I rear-ended the car in front of me, not mine.

[CivilDiscourse]

There were some corrupt Dems who signed on to the Republican trainwreck bill, yes.

As more information has come out about SVB it looks like there were three major contributing causes, and that Trump deregulation was one of them. So Bernie seems to have been correct on this. The other two causes seem to have been bad investment choices by the bank, and the CEO causing a run on the bank by overpublicizing what were only medium-level financial difficulties.

Here's my take. All those people NOW blaming Trump for this. Why didn't they try to fix it before hand? If these de-regulations were so bad, why didn't Bernie introduce legislation to fix it? Why didn't Warren? Same with the Train Regs....why didn't Biden's admin reverse that deregulation if they thought it was bad? They could have easily ATTEMPTED to fix these issues anytime in the past two years, but have not even tried.

Officer, I had my car for two years, but the last guy who owned it wore the brakes down. It's his fault I rear-ended the car in front of me, not mine.

[Sparko]

I can't tell if you're full trolling here or actually believe the crazy you're writing.

What did I say that was not true?

[Sparko]

Here's my take. All those people NOW blaming Trump for this. Why didn't they try to fix it before hand? If these de-regulations were so bad, why didn't Bernie introduce legislation to fix it? Why didn't Warren? Same with the Train Regs....why didn't Biden's admin reverse that deregulation if they thought it was bad? They could have easily ATTEMPTED to fix these issues anytime in the past two years, but have not even tried.

Officer, I had my car for two years, but the last guy who owned it wore the brakes down. It's his fault I rear-ended the car in front of me, not mine.

Yep, Biden spent days undoing everything Trump did when he first got into office. Why did he not fix this one?

[CivilDiscourse]

Yep, Biden spent days undoing everything Trump did when he first got into office. Why did he not fix this one?

He'd have an excuse if a bill was introduced but failed a vote. He can't make congress pass legislation, but fir dems to not have tried given how bad they said things were is inexcusable.