Joint Statement by Treasury, Federal Reserve, and FDIC | Crypto Craft

  • Joint Statement by Treasury, Federal Reserve, and FDIC

    From federalreserve.gov

    The following statement was released by Secretary of the Treasury Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin J. Gruenberg: Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system. This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth. After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and ... (full story)

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Bones
Mar 13, 2023 3:39am
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Quoting dreeamer87
{quote} Assets were not at risk, if you've understood the scenario in any detail you would know that it was liquidity/cashflow problem, not a solvency problem. Yes banks are important but due to fractional reserve banking it is and was a "systemic" problem. When I said normal businesses, I meant non-banks enterprises. If Amazon tomorrow had a cashflow problem, would it be a cause of intervention - big fat no. Fear of contagion had caused overeaction just like the covid-19 pandemic - knee jerk reactions all over the place. Banks get bailed...
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dreeamer87
Mar 12, 2023 9:25pm
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Quoting The Fool
{quote}the 16th largest bank in the US with >$200bio in depositor assets at risk is not a "normal business", whatever that is.
Assets were not at risk, if you've understood the scenario in any detail you would know that it was liquidity/cashflow problem, not a solvency problem.

Yes banks are important but due to fractional reserve banking it is and was a "systemic" problem.

When I said normal businesses, I meant non-banks enterprises.

If Amazon tomorrow had a cashflow problem, would it be a cause of intervention - big fat no. Fear of contagion had caused overeaction just like the covid-19 pandemic - knee jerk reactions all over the place.

Banks get bailed out - non banks don't
Banks can manage your money to make more money and get backed up by state authorities if trades don't work, non banks don't have this luxury.
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The Fool
Mar 12, 2023 10:15pm
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Quoting dreeamer87
{quote} Banks get bailed out...non banks don't
Really? Tell that to AIG, GM, Fannie and Freddie, Chrysler, and 100's of mortgage servicers. Oh, and don't forget the $54 billion in direct payments to the 10 largest US airlines to keep them from dying in the pandemic.
The Fool
Mar 12, 2023 6:34pm
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Quoting Wigglesworth
LOL! Middle-class citizens always bear the cost of the follies of the rich in one way or another.
there's a Middle Class?
The Fool
Mar 12, 2023 6:36pm
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Quoting dreeamer87
The lobbying of the venture capitalists worked, and they are now whole... pity normal businesses cannot lobby in this way to achieve such swift outcomes in the period of a weekend.
the 16th largest bank in the US with >$200bio in depositor assets at risk is not a "normal business", whatever that is.
The Fool
Mar 12, 2023 6:33pm
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Quoting cpizzle
Shits about to go down. This is exciting. Hopefully we can trade it right!
Better get crackin. If you didn't trade it Friday you is already late.
Wigglesworth
Mar 12, 2023 5:26pm
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LOL! Middle-class citizens always bear the cost of the follies of the rich in one way or another.
Reply
cpizzle
Mar 12, 2023 5:42pm
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Shits about to go down. This is exciting. Hopefully we can trade it right!
Reply
dreeamer87
Mar 12, 2023 5:28pm
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The lobbying of the venture capitalists worked, and they are now whole... pity normal businesses cannot lobby in this way to achieve such swift outcomes in the period of a weekend.
Reply
frontier
Mar 12, 2023 5:26pm
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Here it is, long awaited FED Pivot? Brrr again..?
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Trader#0065
Mar 12, 2023 7:27pm
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6% inflation will be the new norm. Printers are coming back on.
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