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2023-03-13 Economy
Hedge fund manager Bill Ackman warns of 'economic meltdown' following Silicon Valley Bank collapse
[NYPOST] Hedge-fund manager Bill Ackman predicted that an "economic meltdown" was looming on Monday following Friday’s collapse of Silicon Valley Bank.

In a rambling, 649-word, one-paragraph tweet Saturday, the billionaire predicted that uninsured bank customers would rush to withdraw cash Monday unless the government steps in to guarantee their funds and "fix a-soon-to-be-irreversible mistake."

The 16th largest bank in the US, which provided financing for a large chunk of the country’s venture backed tech and health companies, was taken over by the Federal Deposit Insurance Corporation Friday as its stock plummeted due to liquidity concerns tied to rising interest rates.

It marked the largest bank collapse since the 2008 financial crisis, and it stranded billions of dollars belonging to companies and investors, whose deposits in excess of $250,000 are not covered by the FDIC.
Posted by Fred 2023-03-13 00:00|| || Front Page|| [11124 views ]  Top

#1 He panicked the Puppet Show into public guarantee of depositor protections by threatening to start a run. It worked, the Puppet told another BS lie about no taxpayer money and poof.....
Posted by NoMoreBS 2023-03-13 01:05||   2023-03-13 01:05|| Front Page Top

#2 The Feds are going to delay planned interest rate increases for obvious reasons at the moment but that means inflation will continue to rise.

Lose/Lose!
Posted by Mad Eye Omeretch7959 2023-03-13 05:26||   2023-03-13 05:26|| Front Page Top

#3 Epoch Times article

"No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer”

But (quotes are from the govt. statement) -

"Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.”

Which will get passed on to the taxpayer.
Posted by Bobby 2023-03-13 05:44||   2023-03-13 05:44|| Front Page Top

#4 Another sign of incompetent, leftist Deep State (Federal Regulators).
Posted by Mad Eye Omeretch7959 2023-03-13 06:22||   2023-03-13 06:22|| Front Page Top

#5 Following up with #2, the BLS releases the February CPI number tomorrow. And the Fed's Open Market Committee meets March 20-21. Could be VERY interesting.
Posted by Tom 2023-03-13 11:52||   2023-03-13 11:52|| Front Page Top

#6 There have been several auctions today of short term US Treasury paper, interest rates have fallen a bit compared to results of the preceding 4 weeks or so. This could be expected since (I imagine) those who can have put money into Treasury Direct programs, etc. after removing it from their bank deposits. I bought a 26 week bill in today's auction, my interest rate will be about 4.8%, down from 5.2% last week. 4.8% is still better than I can make at most banks I know of. This interest rate results from the auction and was not set by the federal regulators.
Posted by Gromble Dribble4342 2023-03-13 12:01||   2023-03-13 12:01|| Front Page Top

#7 Bloomberg very recently: Ackman Says Regional Bank Stocks Are an ‘Incredible Bargain’ Now. I say: Do not invest a cent in any bank stock or bank bond. Simply holding on to US currency is a bad enough risk.
Posted by Gromble Dribble4342 2023-03-13 12:28||   2023-03-13 12:28|| Front Page Top

#8 Wow, it seems the Pump and Dump scheme still works. First he saves his deposits with threatening a run, and now he touts the bank they were in. A real SEC criminal division would have a deep look at Mr. Ackerman now.
Posted by NoMoreBS 2023-03-13 12:39||   2023-03-13 12:39|| Front Page Top

#9 My money's in the Feed&Seed River Bank.
Posted by Skidmark 2023-03-13 14:19||   2023-03-13 14:19|| Front Page Top

#10 Trading temporarily HALTED in dozens of banks after shares fell by up to 75% when market opened at 9.30am - moments after Biden said 'US banking is safe' - as contagion spreads to heavyweights Wells Fargo, Bank of America and JP Morgan
Posted by Skidmark 2023-03-13 14:20||   2023-03-13 14:20|| Front Page Top

#11 ^^^ #8 Joe Biden's speech he just gave may cause bank stocks to crash even more.
Posted by Mad Eye Omeretch7959 2023-03-13 09:14|

I made that prediction before the markets opened, immediately after Biden's speech because he made the most stupidest, ignorant,flippant, careless, irresponsible, "class clown" remark that did not need to be made at this time of the crisis regarding bank stocks that really spooked investors big time, obviously.
Posted by Mad Eye Omeretch7959 2023-03-13 15:59||   2023-03-13 15:59|| Front Page Top

#12 P.S. I noticed the left side of Joe Biden's mouth appeared paralyzed, would not move while delivering his speech early this morning. As I am a former EMT, Joe Biden, I can assure you, has had a recent debilitating stroke!
Posted by Mad Eye Omeretch7959 2023-03-13 16:05||   2023-03-13 16:05|| Front Page Top

#13 The market has bounced around all day but hasn't really reacted either way in any dramatic fashion. That of course could change any moment.
Posted by M. Murcek 2023-03-13 16:06||   2023-03-13 16:06|| Front Page Top

#14 ^^^ That could be because investors were moving money from crashing bank stocks to other types of stocks to other stable stocks causing those to increase in value.

Also, Charles Swab is the only financial firm that released a positive statement before the opening bell and that immediately turned their stock values around.

Very surreal as to how words made huge impacts all around early this morning.
Posted by Mad Eye Omeretch7959 2023-03-13 16:18||   2023-03-13 16:18|| Front Page Top

#15 ^ "Jawboning" is a time-honored tradition in the financial world.
Posted by M. Murcek 2023-03-13 16:47||   2023-03-13 16:47|| Front Page Top

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