Trading the stockmarket (NO Referrals)

SPG said:
Hell no to bail outs.

You make your choices, Sasha sums it up.

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The Bank Run Has Apparently Just Started

Silicon Valley Bank has now collapsed. And the media circus has turned to promoting a bank run on Monday.☕️ JOIN MY PATREON - DISCORD, BONUS VIDEOS, TARGET P...
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Kind of what I saying earlier to friends. Why should the tax payer bail out these often mega rich gamblers.

If my ISA ever gets to near 85k I will start an isa in another bank to get another 85k of protection.

Because I have to apply risk management to my money.



This isn't an endemic problem that has to do 2008 style damage. The damage will come from hype.
 
The VC investors im not really concerned about.

However, the tech firms with no access to money for the company, staff etc...horrible for all.

Government damned if they do and damned if they dont

I expect some crazy market behaviour tomorrow.
 
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413x said:
Kind of what I saying earlier to friends. Why should the tax payer bail out these often mega rich gamblers.

If my ISA ever gets to near 85k I will start an isa in another bank to get another 85k of protection.

Because I have to apply risk management to my money.



This isn't an endemic problem that has to do 2008 style damage. The damage will come from hype.
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Are you talking cash ISA or S&S ISA, because having over 85k in a stocks and shares ISA doesn't matter.

or are you just using that as an example about risk management?
 
Minusorange said:
If not a bailout then what exactly is it, if the Bank didn't have enough assets to cover the balances, where is this money going to come from ? (I would guess the Fed money tree but it seems it's not a bailout)
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As the interest rate rises, bonds market value decreases to compensate, calculating the % of the bond, its duration and current interest rates.

The bonds they bought were a lower % than what the interest rate is today, the bond prices are therefore down, how much dont know, maybe 5%, maybe 10%.

So the fed can hold those bonds till maturity.

So in theory, all deposits are secured, then the interest on those deposits is in question, there wont be enough, so basically the bank itself will be killed off, and all depositors should be paid interest until the money runs out

The issue here is, if bank runs actually become a thing, every bank will end up in the same situation, because i highly doubt any bank has enough assets to cover deposits, certainly not in the short term, long term maybe.

So anyway guarenteeing deposits is not a bailout, if you gave them some billions to cover the shortfall that would be a bailout as it would prevent them from going bankrupt.
 
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Fingers crossed, looking at my screen (yeah ok i am no Gordon Geko) the US tech futures look ok, ftse flat but i may eat my words later in the day
 
Nice bit of business for HSBC....£1 for a solid chunk of commercial tech banking market.

Seems like this whole thing is a screw up by the fed..telling SVB to hold bonds that got wrecked by the inflation crisis that stressed their balance sheet, and then capped off with a classic bank run.

Seems like it's all going to be contained.
 
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