The Banking Collapse of 2023 is now bigger than the 2008 “banking crisis”

[debbiedowner]

That's it. Even the experts can't say for certain how bad it will get. All they can do is read the tea leaves maybe with more expertise than we can and tell us their best conclusions they come up with. 2008 triggered the worst and, mostly because of Obama's ineptness in handling the economy, longest recession in U.S. history since the Great Depression. Significant ripples were felt around the world.

Could this one be worse? I think yes, unless we get the 'woke' Democrats out of power next year and elect somebody who knows what the hell he or she is doing.

2007-2009 was not a long recession and Obama had nothing to do with it. He did drag us out of it. Who was President between 2007 and Jan 20, 2009?

Great Recession: What It Was and What Caused It

The Great Recession was a sharp decline in economic activity from 2007 to 2009 and was the largest economic downturn since the Great Depression.

www.investopedia.com

 

[Harpy Eagle]

I'm only going by what I read in the papers and see on television including sources the leftists see as gospel.

Maybe try thinking for yourself instead of having them tell you what to think

 

[g5000]

I'm only going by what I read in the papers and see on television including sources the leftists see as gospel.

You should have engaged your own critical thinking. This is what frustrates me about partisan hacks the most.

It never even occurred to you to wonder why they did not mention the broker-dealers and AIG and the GLOBAL collapse of thousands of banks.

If you were alive in 2008, you should be embarrassed at your total lack of recall of that important period in our country's history. Thoroughly embarrassed.

 

[g5000]

2007-2009 was not a long recession and Obama had nothing to do with it. He did drag us out of it. Who was President between 2007 and Jan 20, 2009?

Great Recession: What It Was and What Caused It

The Great Recession was a sharp decline in economic activity from 2007 to 2009 and was the largest economic downturn since the Great Depression.

www.investopedia.com

This is not the first time I have seen someone attempt to blame Obama for the 2008 crash.

The partisan hackery is incredible. It's like parts of their brains die every day and erase even recent history.

 

[Toro]

This BTW is still serious. More losses are coming. But it doesn't rival the GFC. At least not yet.

 

[g5000]

There have been no bailouts thus far. No government funds have been used.

FDIC money was used to bailout the SVB depositors, including the ones who were above the insured limit. That is government money. However, it came from insurance fees charged to the banks and not from the taxpayers.

 

[toobfreak]

You shop based on what charities or political parties your vendors support, not price, quality, delivery and consistent service?

I try. Shopping with smaller companies than Amazon when possible, I've not found that I give up anything special in terms of price, quality or service, indeed, they often try harder to please. I've been a small businessman, so, do not feel obliged to apologize for supporting them, I even pay my grass-cutter 25% more than I could pay otherwise because the guy runs a legitimate business, invests quite a bit into material, tools and machinery for most any yard job year around and he and his brother rely on the business 100% for their livelihoods.

In contrast, in the past 6 months with Amazon, they've sold me used rope that was obviously unpacked by someone and with numerous flaws, then they shipped a CD I spent 30 years trying to locate a copy of boxed in with a quart of heavy tile paste in an empty box with absolutely no packing and the CD arrived looking like it had been hit with a hammer, and the coup de grace was when I ordered a green laser pointer last winter with recharge cord and they sent me a totally different red laser with a USB plug instead.

Then I had to spend days fighting through their automated robot return system with no option to deal with their F-ups and with multiple foreigners answering as CSRs speaking broken english before I finally got satisfaction after a ton of aggravation.

The only thing good about Amazon is that you can find most anything there, but their QC and CS really SUCK, not to mention their crappy product descriptions and customer reviews.

 

[g5000]

This BTW is still serious. More losses are coming. But it doesn't rival the GFC. At least not yet.

Some banks are going to have take losses on their bond assets. Hopefully they are capitalized well enough to take the hit.

 

[debbiedowner]

You should probably read better maybe?

No, you should probably research it, it is fees. Hell, fox news will tell you that.

 

[toobfreak]

You have not heard of Citizens United? WOW!
It is HUGELY popular with the Right.
This will help you catch up

Not interested. You see, you misunderstand me: I'm not a rightwinger, I'm an American. I'm not a leftwinger, I'm an American. The only reason why I tend to lean right and support the GOP more than democrats is because far more of what they do supports AMERICA, whereas I don't know what the fuck the democrats are, but they aren't behind America.

 

[Toro]

FDIC money was used to bailout the SVB depositors, including the ones who were above the insured limit. That is government money. However, it came from insurance fees charged to the banks and not from the taxpayers.

FDIC is run by the government but funded by insurance premiums paid by the banks.

The FDIC is not supported by public funds; member banks' insurance dues are its primary source of funding.​

Federal Deposit Insurance Corporation - Wikipedia

en.wikipedia.org

 

[Toro]

Some banks are going to have take losses on their bond assets. Hopefully they are capitalized well enough to take the hit.

It won't be just that. Regional banks are the primary funders of commercial real estate. Losses will be taken there since commercial real estate is marked too high. Capitalization rates - the net operating income - of CRE was as low as 4% for some assets, or even lower. That was OK when interest rates were rock bottom. But today, funding rates have soared to 6-10%. And there's a wall of $2.5 trillion in loans coming over the next few years that will have to be refinanced. There's no way that you can operate on a 4-5% cap rate when your funding costs are 8%.

We owned a building in downtown San Francisco that we sold to some Asian investors for a 2.5% cap rate in 2018. The equity and most of the debt in that building has been wiped out. There's a giant neutron bomb coming in CRE.

 

[Foxfyre]

What you are reading is incorrect.

Well don't complain to me. Complain to Fox, CNN, MSNBC, WAPO, NYT, etc.

 

[Foxfyre]

Which is your problem.

Well perhaps you can share your great wisdom that you get from sources other than that?

 

[Foxfyre]

There have been no bailouts thus far. No government funds have been used.

Are you sure about that? It sort of depends on the definition and who's doing the 'splaining. I haven't found Biden or KJP all that accurate, okay forthcoming with the truth, most of the time lately.

"Yes, it was a bailout," said Paul Krugman, a liberal economist and New York Times columnist, writing that the source of the funds "doesn’t change the reality that the government came in to rescue depositors who had no legal right to demand such a rescue."

Neil Barofsky, who oversaw the bank bailout, known as the Troubled Asset Relief Program, for the Bush and Obama administrations, told NPR, "If your definition is government intervention to prevent private losses, then this is certainly a bailout."

Is it a bank bailout? On SVB, White House fights comparisons to 2008 as Biden confronts bank crisis

The White House is rejecting the word "bailout" to describe Biden's decision to rescue depositors at Silicon Valley Bank and Signature Bank.

www.usatoday.com

 

[Foxfyre]

Maybe try thinking for yourself instead of having them tell you what to think

Again if you have sources other than the media, please let me in on your great opportunity to gain knowledge outside of that. I am not in either banking or financial management, but I know a couple of bankers and financial managers who pretty much agree with the media accounts.

But hey, you no doubt know a hell of a lot more than they do. So clue us in on how you know.

 

[Foxfyre]

You should have engaged your own critical thinking. This is what frustrates me about partisan hacks the most.

It never even occurred to you to wonder why they did not mention the broker-dealers and AIG and the GLOBAL collapse of thousands of banks.

If you were alive in 2008, you should be embarrassed at your total lack of recall of that important period in our country's history. Thoroughly embarrassed.

I was not only alive in 2008 but I was running a business in 2008, owned property in 2008, and had a close relative in the real estate business in 2008. And I do pretty good research.

 

[Foxfyre]

No, you should probably research it, it is fees. Hell, fox news will tell you that.

Fees on a mortgage are paid up front and are one time lay outs of cash. Indeed there may be additional fees. I don't know. But everything I've read is that the increase in interest rates will increase the mortgage payment every single month for the life of the mortgage. Prove me wrong if you can.

 

[John Edgar Slow Horses]

Nominated for the silliest post so far in a week.

The Banking Collapse of 2023 is now bigger than the 2008 “banking crisis”

 

[John Edgar Slow Horses]

Fees on a mortgage are paid up front and are one time lay outs of cash. Indeed there may be additional fees. I don't know. But everything I've read is that the increase in interest rates will increase the mortgage payment every single month for the life of the mortgage. Prove me wrong if you can.

Unless it is a balloon mortgage or a variable rate mortgage, the interest rate every month will be the same for the life of the mortgage.