Hubbert posted:

Hubbert posted:

Hubbert posted:

gently caress COREY PERRY posted:

EVERYTHING IS INSANE

NOTHING MATTER

DRINK

forkboy84 posted:

Some very dumb from Harvard Law is on Bloomberg insisting there's no need for more bank reputations because it's the Fed's fault for not acting as lender of last resort to save SVB from itself.

While then saying that actually it's a failure of oversight of the bank. The hosts seem moderately bewildered by this

Johnny Cache Hit posted:

can someone good at photoshop please replace every single item on that tray with a comically large bunch of grapes to put a nice bow on the last hour?

Jaxyon posted:

what's the new hot apple for eating normally?

honeycrisps were the hotness for a while but mostly they've been over farmed and are pretty tasteless

ambrosia?

super sweet best pal posted:

So why is it called "Right to Work" when the description is anything but?

anime was right posted:

by making this new thread i have saved the economy. yes, that's right. i am the fed and calling attention to market failure causes number to rise. doomsday economics has been a successful bailout plan.

HallelujahLee posted:

this wacko legit looks like a psycho so it tracks

Raskolnikov38 posted:

nope goons did benghazi and the email server lol

anime was right posted:

peter thiel probably lurked at some point

anime was right posted:

well then your question was rhetorical

Homeless Friend posted:

the problem with capitalism is you don't run out of other peoples money

dk2m posted:

the way to understand what’s happening right now is not at all what orthodox economics wants to tell you. this is sort of an effort post.

I’m completely simple terms - this is the consequence of Obama and Geithners policy in 2008. when the banks blew up back then, we had a choice - do we as a society protect the creditor or protect the debtor? the answer came clearly down to protecting the creditor - the banks.

the main reason for that is that is because we were in the midst of a revolution - the free trade agreements and de-industrialization policies of Clinton staring with NAFTA and the admittance of China to the WTO in 2001 were turbocharging the equity and bond market.

with labor being squeezed and eventually collapsing by moving overseas, the main enemy of neoliberalism was conquered. unions fell apart and factories shut down, but because of the rise in technology coinciding with dirt cheap foreign labor costs, productivity went through the roof. around the same time, business schools were churning out MBAs that based their framework around finance instead of industrial engineering - older schools like GMI in Flint (now Kettering University) which trained executives to think in terms of industry were giving way to Stanford and Harvard MBAs who prioritized the CFO led model of prioritizing the stockholder.

these coinciding factors led to executives gutting their companies to shutter factories, move them overseas, and largely focus on financial engineering to boost their share price. a characteristic of finance that separates it from a real economy is that financial returns compound while a real economy looks like an S curve - a financial economy simply grows unbounded.

that’s because finance is debt based. banks create debt and make claims on assets. their source comes from thin air - when you apply for a mortgage, they simply push a button and come up with a the money. in theory, they are required to keep a reserve to cover deposits - with deregulation, it has given them less and less to cover on hand, to now virtually guaranteed risk-free government backed bailouts.

i also think it’s important to understand what exactly a bank does. let’s say you deposit some money into one. from a banks balance sheet perspective, your deposit is a liability in an accounting sense. this means that they package the liability, your deposit, into an asset via an exchange on the market.

because a banks primary product is making claims on real assets, they naturally are rent seeking institutions. in order for them to grow and make money, they need 2 things - an ever larger pool of assets to lay claims on and a source of easy credit to lever their claims on to increase their rate of return. the first part is done via privatization - by moving assets from the public domain, such as land or healthcare or education, to the private one, they force the entire population to take on loans, which gives the banks their pool of assets to lay claims on.

the second piece comes from the availability of a Bank themselves to get short term loans. a bank is a special institution under financial capitalism that can enter a repo market with its central bank, the fed. they can collateralize and obtain credit from the central bank and can use that same credit to cover their liabilities (aka deposits) or go into the financial markets and buy stocks, bonds and products.

banks pre 2008 were making extremely risky bets by tapping into the largest debt pool of all - mortgages. because everyone has a mortgage, which pays interest, investment banks began committing outright fraud by packaging garbage loans and making it appear golden and the commercial banks lended loans to anyone with a pulse. this skyrocketed returns across the board as the combination of derivatives and interest bearing loans compounded and grew far beyond the growth of the real economy. in 2008 when it finally collapsed, Obama decided that he would protect the creditors and the only way to do this was to re-inflate the prices of both real estate and the stock market.

this is where the regime of 0 interest rate credit came into play. as money became basically free, banks gave the government all of their toxic bonds and derivatives and in return got free money from the federal reserve to chase returns again. stock buybacks, VC money, institutional housing buybacks, healthcare, insurance, and arbitraging were all turbocharged with QE. this led to an equity and bond market boom as the federal reserve gave the banks enough loans to spread throughout the system to make sure all the distressed houses they had on the balance sheet were not only propped up again, but would eventually far outpace the book value of the homes itself.

as the rally grew, and the economy became more polarized, the creditors and financial class inflated the stock market to obscene levels, but needed more and more assets to lay their credit claims on. this only further impoverished the rest of us, as housing, education and healthcare costs spiraled out of control. rather than see these as the driving costs for what we now call “inflation”, the fed simply doubled down on this regime and left it at near 0 well after the initial recession ended. the small financial class enjoyed unparalleled wealth that had never really been seen before in american history.

what eventually burst this bubble was covid. since we deinsturalized, we faced sudden shortages that caused massive supply/demand imbalances. these causes prices for some goods to spiral, cars for example. in response, the fed dropped another 9 trillion QE regime in which the main intent was to inflate the stock and bond market. this led to the absolutely asinine situation of a soaring stock market amidst collapsing employment.

as covid ended and labor had new gained power to negotiate wages in 2022, the idea of inflation started to really become a mainstream topic in financial news. inflation is really a euphemism for rising wages and employment, but an overall increase of wages would sharply threaten financial returns for all the now CFO led companies and startups. to curb this, the fed decided to raise interest rates.

the problem is that they have flooded the market, since 2008, with low interest rate credit. as companies became flush with cash, especially the tech sector, they parked their money into treasury bonds. most banks barely pay any interest on savings or CDs, something like less than .05%, so wealth individuals and cash plush companies would rather invest in long term t-bonds which were only interrupted after labor suddenly had some negotiation power due to covid.

this whole situation is a consequence of gutting the country of industry and focusing on finance as the primary growth driver. the problem is that now, we have so much credit that has been used to indebt the rest of us, and nearly every bank has underwater bonds as they invested in “safe” treasury bonds, that the system has nowhere to go. the individual actions of banks, such as bailouts, are less of a moral hazard than the overall structure of the economy basically resembling the Soviet Union, but financially rather than via fake production quotas. as the Soviet Union was obsessed with production to to point of it becoming farcical, so we are with finance to the point of it now it being largely fiction as we cannot QE as that would counter act the rate hikes, and we cannot continue the rate hikes as that would collapse more banks. we have to come to the conclusion that banks and creditors ARE the problem, and let them collapse and bring back a goods and consumer spending based economy rather than a fictitious debt based one.

Paradoxish posted:

There was never any serious risk that SVB depositors wouldn't get back most of their money, or even all of it given enough time. A ton of this panic is entirely because the government rushed out to guarantee deposits with infinite money, making an already bad situation seem far, far worse. Now they need to walk this poo poo back because "the federal reserve has infinite money and all deposits are guaranteed" is a batshit insane statement.

Wraith of J.O.I. posted:

today's INFRASTRUCTURE updates:

https://twitter.com/seattletimes/status/1636371046273290240

webcams for christ posted:

https://twitter.com/spignal/status/1636242698595180545

lol everyone rediscovering this over and over again during crises

HallelujahLee posted:

yeah thats totally happening demented loser calls on someone else to do his job

Mr Hootington posted:

Good job Minnesota
https://twitter.com/MorePerfectUS/status/1636824655582597120?t=gs4qY_yyo67KF8NEAZgF9Q&s=19

skaboomizzy posted:

https://twitter.com/prem_thakker/status/1636832350167343104

the ghostly tones of "16 Tons" can be faintly heard

Cuttlefush posted:

You are above even The Piss. I hereby award you the title of Big Piss. You are a true patriot.

Archduke Frantz Fanon posted:

hes the leader of france whats the worst that could happen

MonsieurChoc posted:

Somehow, Ea-Nasir has returned.

anime was right posted:

Rich people have an enormous amount of cash they're afraid to lose

net work error posted:

It is now national policy that they cannot lose a cent.

zetamind2000 posted:

Bitcoin

Paradoxish posted:

Every single time they double down on the "all deposits insured forever" line I start to think that maybe things are really bad this time.

RealityWarCriminal posted:

buncha libs shocked to learn class consciousness means sympathy for working class whites

Nonsense posted:

Badgers burrowing below railway tracks have wreaked havoc on train services in the Netherlands, causing cancellations and line closures.

Trains in the north and south of the country have been affected, with some services halted for at least a week.

The line between Den Bosch and Boxtel in the south was closed on Tuesday after the mammals dug under the tracks.

Officials said it was not clear how long the problem would continue as badgers were a protected species.

Nichael posted:

I am going to make Children of Men real.

Barrel Cactaur posted:

Interesting way to write Chinese economy dies as it no longer trades finished goods for raw materials, food, and medicine. Please recall Russia is currently being fought off with essentially spares. Russian stability has been based on a carefully structured prison house of nations being run by the biggest gang. China has based it on economic prosperity. Crashing Russias raw materials export market was never going to stop them, because someone will always take the deal. But China is much more vulnerable. Military needs just can't take up the slack, or provide the food in short order. Their poor agricultural disease control makes this extra fragile.

Additionally they don't have uncontested control of the SCS like the US has uncontested control of the East Pacific and Atlantic seaboard. The US can rebuild it's conventional navy far out of reach, while China can't prevent attacks from being staged from the whole region, a region it has not made an effort to be a good neighbor in.


The US can commit enough navel and air power to permanently eliminate Chinas navy, take 100% losses, and move enough assets from current active duty to do it twice more. In a more realistic scenario, it's enough to keep the Chinese navy bottled in port and fight it as an air war where both sides lob missiles at each other's planes from standoff range until we figure out how to resolve a nuclear power conflict with no nukes.

euphronius posted:

I had it down as 50/50 so not I’m not supersized

FlapYoJacks posted:

gently caress this dumb court system and gently caress California.

On the LA court website:
- She owes us nothing.
- We owe her $300

Status: Judgment - contested

She flagrantly violates the law, retaliates repeatedly against us, fucks us out of our goddamn security deposit, and the judge is like "lol you owe her money."

What the gently caress. All landlords can go to hell. I am confused by the contested judgement.

kazmeyer posted:

So, for those who aren't familiar: a bunch of hedge funds figured out they can naked short weak companies to death, and if they're successful, it's pure profit since they never have to cover their positions. They targeted GameStop and a bunch of just the most deranged psychopaths on Reddit started buying up huge swaths of the stock to take it out of the float and try to force a short squeeze. The hedge funds manipulated their way out of it but then doubled down on the naked shorting, so right now there's supposedly millions upon millions of completely synthetic shares floating around and the Reddit lunatics keep buying more and pulling it out of trading. It's a humongous game of chicken-- if GameStop goes bankrupt all the Redditors lose their shirts, whereas if they can force the issue long enough for the hedge funds to have to close their shorts, the stock price should go insane. GS posted an unexpectedly good quarterly result the other day, which drove the price up and is making everyone on both sides freak out. The poo poo with Credit Suisse and UBS and all that apparently involves some of these GameStop short bags being passed around like a really explosive hot potato, and every time somebody new gets on the hook and takes one look at the balance sheet they immediately try to bail.

So it's looking like maybe another disaster a la the Big Short is coming, and that's pretty reasonable. But then you get into the batshit stuff, where the Redditors have decided since, technically, naked shorting can leave you on the hook for exponential rises in the stock price, they're going to lock down all the legit shares, force the squeeze, and hold on until GameStop's shares are worth millions of dollars apiece, at which point capitalism will throw its hat to the ground and stamp on it and we'll all be using GameStop-branded NFTs for money. Any time anybody involved tweets anything it gets broken down and overanalyzed on a level that would make Qanon folks blush.

It's /r/superstonk where the high-test crazy is right now.

Cpt_Obvious posted:

The official policy of the CCP towards the US is something they call "managed decline".

From their point of view, they've already won. They own the means of production, now all they have to do is outcompete western capital with their obviously more stable system. Meanwhile, the west is in a state of decline. Europe is pretty worthless. It has a trade deficit and is basically demilitarized. Ukraine is at war, France is on fire, Germany is out of gas, Italy has gone full fash. In the middle east, Israel is also on fire, the Saudis are hopping ship, and America left an army's worth of equipment in Iraq who is now cutting deals with China.

Everything is falling apart, all they have to do is wait. That's why they don't act when America puts troops in Taiwan. The one thing that could gently caress it all up is a direct nuclear conflict so they're just gonna avoid that provocation at all costs.

Homeless Friend posted:

Chad Sexington posted:

HallelujahLee posted:

thank you chad

Any time

mycomancy posted:

I want more hilarious content so I think you should appeal.

RealityWarCriminal posted:

do the appeal. 10k is real money and facts are on your side.