Credit Suisse now has a 47% chance of default, stock down 25% this morning.

[Mensch Fontana]

The game was already over after 2008 all the ball outs and quantitative easing the government did, got us here. It was inevitable

2008 was basically people getting loans who couldnt pay them back (banks and gov were at fault).
dead money.

the situation now is basically svb bought bonds they cant cash out on right away for liquidity (simplified) without taking a loss.

tldr they figured they could put a little on their bill every month but the interest rates rising made things tight...
...and then the bank run happened which pulled up their skirt.

would be like if your credit card company called you up and said "we need all that money right now"...
...youre good on paying every month but there is no way you can pay the bill all at once.

which is why a larger bank could buy them, float the money and still come out on top.

for whatever reason these clowns didnt plan.

"....but the way their bank account is setup...

 

[Ozymandeas]

It's getting to that point. We are almost at a second gilded age. People's futures are being stolen by these demons. Imagine being 22 years old graduating with debt and this is the economy you're coming into. Or being someone who graduated in 2008 suffered, then tried to go back to school during covid and FOR THE SECOND TIME your future is being denied. A person who has had to go through that and turns on the TV and sees news telling them how much worse the world is getting and sees politicians who can only offer the status quo or double down on failed policy--basically no visions for the future that make someone feel hopeful or like they're trying to ease suffering---can you really be surprised if that person takes their last few dollars and decides "fukk it let me kill one of these bankers. At least in jail I get a guaranteed meal, a bed to sleep on and HEALTHCARE"

How fukked up is it that prisoners have better access to medical care than law abiding citizens? How fukked up is it that a murderer is guaranteed food and board but a poor person is one paycheck away from sleeping in their car or a shelter? When you take everything from people and create a group that feels they have nothing to lose, violence is inevitable.

With Chat GPT coming soon to fukk you with no vaseline

 

[Ozymandeas]

It's mind boggling how bad some of these bank CEOs are at their jobs
Have they not heard of risk management, it seems like they make decisions based off the most optimistic conditions lasting long term

Picking pennies up in front of a steam roller.

It goes to show that it doesn't matter if you're buying toxic subprime garbage or AAA rated bonds....if you're negligent you can still find a way to fukk yourself over. Why tie up 70% of your bank's assets in 10 year bonds barely paying over 1% when you know A) the Fed has been talking about raising interest rates for a while B) inflation has been red hot since Covid and C) 90% of your customers are from one industry leaving you extremely exposed if there's a downturn. I know this is Monday Morning Quarterbacking but, there had to have been someone in their HQs realizing they were vulnerable.

 

[JLova]

Picking pennies up in front of a steam roller.

It goes to show that it doesn't matter if you're buying toxic subprime garbage or AAA rated bonds....if you're negligent you can still find a way to fukk yourself over. Why tie up 70% of your bank's assets in 10 year bonds barely paying over 1% when you know A) the Fed has been talking about raising interest rates for a while B) inflation has been red hot since Covid and C) 90% of your customers are from one industry leaving you extremely exposed if there's a downturn. I know this is Monday Morning Quarterbacking but, there had to have been someone in their HQs realizing they were vulnerable.

Who would have thought tech would fail this bad?

 

[Mr swag]

ALL banks will be bailed out

 

[Volt]

Imagine if during COVID people hadn't consumed the entirely optional diet of fear porn and dread that told them they were almost certainly going to end up dead as they voluntarily amped up their own stress levels only for it all to vanish when the media decided it had found its next threat and suddenly everything was open for business.

There is only one trick. Its very large, very old and very effective which is why they pull it again and again. Once you've seen it its impossible to miss so remember that a rollercoaster is fun. The problems only kick in if you're holding on too tight or try to get off while its still moving.

The Game of Souls has you, my friend. Your mind is not you own if you truly think you can own anything in the land of illusion as these are anothers toys we're playing with. You possess a level of richness that is unfinite. Innerstand - without you, here, now, none of this exists.



Look within. That said you can't stunt with that or pay bills so it is what it is just keep the balance and handle it. Choose wisely where you invest your attention.

I sure don't wanna invest my attention on this hippie babble, FOH.

Whatever mumbling you're doing about everything being imaginary is pointless when you go to the supermarket and find out shyt is real. Stop clogging up the paint with this bullshyt.

 

[Godless Socialist CEO]

peep the game

while we're all bickering about the failure of regional banks and its contagion and WHEN taxpayer money will cover their fukk up....

IMF says staff made 'very good progress' in talks about new loan for Ukraine

The International Monetary Fund on Wednesday said its staff made "very good progress" in talks with Ukraine on a set of policies that could underpin a new IMF lending program for the war-torn country, and the talks could be finalized in coming days.

www.reuters.com

The IMF is going to send ANOTHER 15 billion to Ukraine

keep in mind, this motherfukker is located in WASHINGTON, DC and is basically, like the UN and NATO, an extension of the US government.

Americans will pay the loan money that Ukraine receives from the IMF rather than the US just straight up giving Ukraine the money

this is actually fukking insane to watch in real time

You post a lot about shyt you don't understand. I have to say I respect the dedication.

Where Does The Imf Get Its Money

For those who think it's easier to annoy you than to Google 'Where does the imf get its money' themselves.

letmegooglethat.com

 

[Godless Socialist CEO]

Fed gonna turn on the printer again

Weird how they turn back on the printer when the banks need money, but they were raising interest rates willy nilly in order to crush labor and wages

 

[Complexion]

I sure don't wanna invest my attention on this hippie babble, FOH.

Whatever mumbling you're doing about everything being imaginary is pointless when you go to the supermarket and find out shyt is real. Stop clogging up the paint with this bullshyt.

And yet you did. Can you hear the fear speaking as it directs your actions by that little voice in your head? No, of course you can't because you think thats you and thats the whole point of this little charade designed to cause you stress and miss whats obvious as they pull your strings. Again.

Don't at me, I've given you all you'll get but don't comprehend. Have a word with your Self and ask why you react like this and if it is in your best interests, my triple vaxxed hype believing little friend.

 

[Malcolmxxx_23]

Fed gonna turn on the printer again

Lmao

 

[jilla82]

2008 was basically people getting loans who couldnt pay them back (banks and gov were at fault).
dead money.

the situation now is basically svb bought bonds they cant cash out on right away for liquidity (simplified) without taking a loss.

tldr they figured they could put a little on their bill every month but the interest rates rising made things tight...
...and then the bank run happened which pulled up their skirt.

would be like if your credit card company called you up and said "we need all that money right now"...
...youre good on paying every month but there is no way you can pay the bill all at once.

which is why a larger bank could buy them, float the money and still come out on top.

for whatever reason these clowns didnt plan.

"....but the way their bank account is setup..."

if we get another run (which I think we will) and you dont make any money off of it I dont want to see any threads complaining about "the system" or white supremacy

 

[bnew]

Credit Suisse 5-year CDS is now at $1,297.27
Lehman Brothers failed when their 5 year CDS reached 610

Credit Default Swaps | Credit Spreads - boerse.de

Credit Spreads und Credit Default Swaps aller wichtigen Emittenten im Überblick - täglich aktuell. Credit Spreads von boerse.de - Europas erstes Finanzportal!

www.boerse.de

A credit default swap is a type of derivatives contract in which two parties exchange payments and make notional amounts of money. The buyer of the swap makes a payment to the seller and, in return, receives a guarantee that the seller will make good on the payment if a debt defaults. For example, if a company has a large loan, it can purchase a credit default swap from a bank that will cover the company in the event that the loan defaults. This gives the company protection in case of a financial crisis or downturn.

Spoiler: alpaca AI explanation

When a bank fails and enters default, the credit default swap contracts that the bank had with other parties require the bank to pay the other party the face value of the CDS, or the amount that would be owed on the underlying debt. An example of this is the Lehman Brothers bankruptcy of 2008, when bondholders of Lehman Brothers were paid out the face value of their CDS contracts.

Spoiler: alpaca AI CDS explanation

edit:

basically it's getting more expensive to insure against debt owed by credit suisse because more and more parties think the bank will fail.

 

[Fillerguy]

Picking pennies up in front of a steam roller.

It goes to show that it doesn't matter if you're buying toxic subprime garbage or AAA rated bonds....if you're negligent you can still find a way to fukk yourself over. Why tie up 70% of your bank's assets in 10 year bonds barely paying over 1% when you know A) the Fed has been talking about raising interest rates for a while B) inflation has been red hot since Covid and C) 90% of your customers are from one industry leaving you extremely exposed if there's a downturn. I know this is Monday Morning Quarterbacking but, there had to have been someone in their HQs realizing they were vulnerable.

Because the whales pushing these stupid policies already have a way out when shyt goes south. The lemmings follow because the whales are "smart with their money" or " too big to fail" then wonder why they get left holding the bag. The Feds bail them out and the cycle continues a decade later but with another institution.

 

[bnew]

So now that we know the stock market didn't crash on March 15th, can we chalk this up as yet another thing Chat GPT just made up?

chatgpt couldn't "predict" swiss national bank would backstop credit suisse which is in serious financial trouble.

they are bagholding bad positions from Archegos collapse.

 

[Seoul Gleou]

You post a lot about shyt you don't understand. I have to say I respect the dedication.

Where Does The Imf Get Its Money

For those who think it's easier to annoy you than to Google 'Where does the imf get its money' themselves.

letmegooglethat.com

you don't understand how the IMF works

Condescending posts like this add nothing to the conversation. You claim I don't know what I'm talking about but don't post correct information.
The burden of proof is on you, not me. I just think about things critically and deductively; something a lot of people on the coli, and the internet in general, don't do.

So let me spit game.

Of the 109 IMF members, the United States has the largest voting share. What this means, effectively, is that the US has veto power and moves its weight more than any other voting bloc.

The United States also contributes the highest amount of quotas to the IMF; sealing its proportional weight and therefor voting power. It has increased its quota commitment twice. It's the only country to do so; despite reserve and economic variability constraints. But then again, you can do what you want when the bank is in your backyard.

Add all of this to the fact that, much like the ineffectual United Nations, the IMF is located in the US. You realize how pro-American international policy the IMF actually is.

This isn't some blue versus red shyt in America. International policy and economics is a whole other level of bullshyt if you aren't American.

I'm also not the only one who thinks this:

"The impact of IMF loans has been widely debated. Opponents of the IMF argue that the loans enable member countries to pursue reckless domestic economic policies knowing that, if needed, the IMF will bail them out. This safety net, critics charge, delays needed reforms and creates long-term dependency."

So as I said, the US has found a work around to get funds to Ukraine. The Biden admin knows how crazy it would look to have a financial crises and then send money to Europe while it's happening. It would practically hand the next election to the Republicans. That aside, the quotas will have to be paid back into the IMF...and such quotas are covered by tax payers via reserve tranche.

The International Monetary Fund (IMF) : an ABC – CADTM

In 2020, the World Bank (WB) and the IMF are 76 years old. These two international financial institutions (IFI), founded in 1944, are dominated by the USA and a few allied major powers who work…

www.cadtm.org

U.S. Participation in the International Monetary Fund (IMF): A Primer - AAF

Executive Summary The International Monetary Fund (IMF) was created in the wake of the Great Depression to promote stability in global financial markets. Nearly all countries are members of the IMF, but the United States is the largest cumulative contributor to the IMF at $155 billion and the...

www.americanactionforum.org

https://www.imf.org/en/About/Factsheets/Where-the-IMF-Gets-Its-Money

International Monetary Fund - Globalization, Reforms, Criticism

International Monetary Fund - Globalization, Reforms, Criticism: The impact of IMF loans has been widely debated. Opponents of the IMF argue that the loans enable member countries to pursue reckless domestic economic policies knowing that, if needed, the IMF will bail them out. This safety net...

www.britannica.com