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| 08:34 PM | ||
| Users Online Now: 2,176 (Who's On?) | Visitors Today: 1,299,448 | |
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| 08:34 PM | ||
All Banks hold worthless zero interest bonds they cannot sell!!!! | |
Edmond Dantès  User ID: 80541959  United States03/13/2023 04:40 AM  Report Abusive Post Report Copyright Violation | |
| Edmond Dantès (OP) User ID: 80541959 United States03/13/2023 04:45 AM Report Abusive Post Report Copyright Violation | All banks are exactly like SVB only you do not know it yet .. the fed would have to buy back every bond on the market and replace it with an interest bearing bond that has value in the bond market … currently that is not the case .. every bank is at risk due to these rate hikes destroying old bond values Last Edited by Edmond Dantès on 03/13/2023 04:46 AM |
| Anonymous Coward User ID: 81332213 United States03/13/2023 05:16 AM Report Abusive Post Report Copyright Violation | |
| Anonymous Coward User ID: 78351243  Australia03/13/2023 05:31 AM Report Abusive Post Report Copyright Violation | |
| Anonymous Coward User ID: 85421733 United States03/13/2023 05:33 AM Report Abusive Post Report Copyright Violation | The king wears no clothes .. all banks everywhere hold bonds against cash deposits they cannot sell. This is a temporary hold on the bank runs as soon as everyone wakes up to the fact that factional reserve banking finally went broke . Why would you buy a bond with zero or negative interest rate when you can buy one with positive returns .. you wouldn’t .. all the bonds for the last 10 years are now worthless .. Quoting: Edmond Dantès yup. that's about the size of it. there's an absolute mountain of gov't debt now and nobody to buy it. looks like Federal Reserve is gonna play a game now where they loan the difference of the projected loss as ANOTHER bond so losers can stay solvent but... they're just adding more worthless debt onto the pile and devaluing it more. apparently they don't grasp that yet. . |
| Anonymous Coward User ID: 85421733 United States03/13/2023 05:34 AM Report Abusive Post Report Copyright Violation | And why do they need to sell rather than hold to maturity??? Quoting: Anonymous Coward 78351243 and I expect a real serious answer not just some nonesense about unrealized loses which will never be relized if held to maturity?? cash flow. believe it or not, people deposit and WITHDRAW money all the time. . |
| Anonymous Coward User ID: 78351243 Australia03/13/2023 05:45 AM Report Abusive Post Report Copyright Violation | And why do they need to sell rather than hold to maturity??? Quoting: Anonymous Coward 78351243 and I expect a real serious answer not just some nonesense about unrealized loses which will never be relized if held to maturity?? cash flow. believe it or not, people deposit and WITHDRAW money all the time. . Any finance person knows that you need to match maturities If interest rate fluctuations screw that up then you buy bonds that only have a year or two to maturity while for longer term customer deposits you buy matching bonds with more years to maturity. It isn't fucking hard. Has SVB run out of money or just incurred unrealized loses??? |
| Anonymous Coward User ID: 83843579 United States03/13/2023 05:57 AM Report Abusive Post Report Copyright Violation | And why do they need to sell rather than hold to maturity??? Quoting: Anonymous Coward 78351243 and I expect a real serious answer not just some nonesense about unrealized loses which will never be relized if held to maturity?? animal spirits... he who panics early, panics best. good advice for scenarios like this: don't block the exit... that'll get you killed! |
| Anonymous Coward User ID: 78351243 Australia03/13/2023 06:07 AM Report Abusive Post Report Copyright Violation | And why do they need to sell rather than hold to maturity??? Quoting: Anonymous Coward 78351243 and I expect a real serious answer not just some nonesense about unrealized loses which will never be relized if held to maturity?? animal spirits... he who panics early, panics best. good advice for scenarios like this: don't block the exit... that'll get you killed! Difference between panicing early and claiming unsustainable unrealized loses so a Chinese controlled bank can buy you for $1. Tell me what really happened because this bond story sounds like bullshit. |
| Anonymous Coward User ID: 78351243 Australia03/13/2023 06:07 AM Report Abusive Post Report Copyright Violation | And why do they need to sell rather than hold to maturity??? Quoting: Anonymous Coward 78351243 and I expect a real serious answer not just some nonesense about unrealized loses which will never be relized if held to maturity?? animal spirits... he who panics early, panics best. good advice for scenarios like this: don't block the exit... that'll get you killed! Difference between panicing early and claiming unsustainable unrealized loses so a Chinese controlled bank can buy you for $1. Tell me what really happened because this bond story sounds like bullshit. |
| Edmond Dantès (OP) User ID: 80541959 United States03/13/2023 06:13 AM Report Abusive Post Report Copyright Violation | And why do they need to sell rather than hold to maturity??? Quoting: Anonymous Coward 78351243 and I expect a real serious answer not just some nonesense about unrealized loses which will never be relized if held to maturity?? animal spirits... he who panics early, panics best. good advice for scenarios like this: don't block the exit... that'll get you killed! Difference between panicing early and claiming unsustainable unrealized loses so a Chinese controlled bank can buy you for $1. Tell me what really happened because this bond story sounds like bullshit. The reason svb went under was cash demands made them sell their zero interest bonds at a deep loss ..way less than face value because it was an emergency fire sale until they ran out of stuff to sell .. the lower price is the interest earned to the new buyer .. they ran out of bonds before they ran out of cash demand |
| Edmond Dantès (OP) User ID: 80541959 United States03/13/2023 06:14 AM Report Abusive Post Report Copyright Violation | |
| Anonymous Coward User ID: 78785063  Israel03/13/2023 06:20 AM Report Abusive Post Report Copyright Violation | The king wears no clothes .. all banks everywhere hold bonds against cash deposits they cannot sell. This is a temporary hold on the bank runs as soon as everyone wakes up to the fact that factional reserve banking finally went broke . Why would you buy a bond with zero or negative interest rate when you can buy one with positive returns .. you wouldn’t .. all the bonds for the last 10 years are now worthless .. Quoting: Edmond Dantès yup. that's about the size of it. there's an absolute mountain of gov't debt now and nobody to buy it. looks like Federal Reserve is gonna play a game now where they loan the difference of the projected loss as ANOTHER bond so losers can stay solvent but... they're just adding more worthless debt onto the pile and devaluing it more. apparently they don't grasp that yet. . what most don't understand about the federal debt. that number you hear is simply how much money they owe strictly in bond obligations. this DOES NOT INCLUDE PENSIONS, SOCIAL SECURITY OR MEDICARE liabilities(aka structured debt) which are many times greater than what US taxpayers owe to bond investors. The problem is gigantic and there is no chance it will resolve itself. |
| Anonymous Coward User ID: 78351243 Australia03/13/2023 06:30 AM Report Abusive Post Report Copyright Violation | And why do they need to sell rather than hold to maturity??? Quoting: Anonymous Coward 78351243 and I expect a real serious answer not just some nonesense about unrealized loses which will never be relized if held to maturity?? animal spirits... he who panics early, panics best. good advice for scenarios like this: don't block the exit... that'll get you killed! Difference between panicing early and claiming unsustainable unrealized loses so a Chinese controlled bank can buy you for $1. Tell me what really happened because this bond story sounds like bullshit. The reason svb went under was cash demands made them sell their zero interest bonds at a deep loss ..way less than face value because it was an emergency fire sale until they ran out of stuff to sell .. the lower price is the interest earned to the new buyer .. they ran out of bonds before they ran out of cash demand and what is the current yield curve? How much below face value were the bonds sold for? 5% 7% 10% [link to business.nab.com.au (secure)] For such a big bank the losses incurred shouldn't have sent it broke. If banks are so close to the edge they need betyer risk management professionals. |
| Agent 99 User ID: 77082640 United States03/13/2023 06:35 AM  Report Abusive Post Report Copyright Violation | Yep. An economic system based on loans rather than gold backing will fail. It's just a big ponzi scheme. Looks like we are here now. People had 50 years to turn credit into real wealth and 90% failed. Now it's a scramble to float. Lots of drowning will happen. |
| DERAIL User ID: 77309002 United States03/13/2023 06:37 AM Report Abusive Post Report Copyright Violation | And why do they need to sell rather than hold to maturity??? Quoting: Anonymous Coward 78351243 and I expect a real serious answer not just some nonesense about unrealized loses which will never be relized if held to maturity?? cash flow. believe it or not, people deposit and WITHDRAW money all the time. . All it boils down to, banks are glorified bookies. The bank didn't hedge their funds properly. . / |
| Edmond Dantès (OP) User ID: 80541959 United States03/13/2023 07:56 AM Report Abusive Post Report Copyright Violation | ... Quoting: Anonymous Coward 83843579 animal spirits... he who panics early, panics best. good advice for scenarios like this: don't block the exit... that'll get you killed! Difference between panicing early and claiming unsustainable unrealized loses so a Chinese controlled bank can buy you for $1. Tell me what really happened because this bond story sounds like bullshit. The reason svb went under was cash demands made them sell their zero interest bonds at a deep loss ..way less than face value because it was an emergency fire sale until they ran out of stuff to sell .. the lower price is the interest earned to the new buyer .. they ran out of bonds before they ran out of cash demand and what is the current yield curve? How much below face value were the bonds sold for? 5% 7% 10% [link to business.nab.com.au (secure)] For such a big bank the losses incurred shouldn't have sent it broke. If banks are so close to the edge they need betyer risk management professionals. The risk manager was some Indian chick who spent most of last year organizing gay pride events in Europe |
