3 ms·

Right but it sounds like their investment didn't "go sour"; this isn't then an example of "greedy bankers", more like "lazy bankers" or possibly even "unforesee

by Zetice 4y ago

Right but it sounds like their investment didn't "go sour"; this isn't then an example of "greedy bankers", more like "lazy bankers" or possibly even "unforeseeable circumstances".

salawat 4y ago
....Do you not understand that a bank is a creature of "we'll keep it safe until you need it?" That a bank, even if the ultimate investment of float they did, finds themselvesbin a position they cannot reconstitute sufficient float to pay out it's liabilities has ultimately engaged in bad/risky investments? Risk can happen in terms of "Wow those turned out to be really crappy mortgages," ot in "Well, I just dumped all that money in single year TBills, and the interest rate went up!" Any bond in an increasing interest rate environment in the abscence of enough time being available to fully mature is setting principle on fire. Because you can't cash out, because no one will buy. That's what went sour. You bet peoples money on things'll stay the same... And you were wrong, and there was no time to paper over it with the coupons of those bills.
jgwil2 4y ago
> this isn't then an example of "greedy bankers", more like "lazy bankers" or possibly even "unforeseeable circumstances". A distinction without a difference. They made bad decisions for whatever reason, or they got unlucky for whatever reason, or some combination of the two. That's why companies go out of business. They are not special.
- Zetice 4y ago
  We distinguish intent all the time for various legal reasons, and if something done for the right reasons goes wrong, the empathy is certainly more readily available. I have yet to see any real reason to suggest this was anything other than a blunder. A relatable one too, as nobody in 2021 thought the fed would have to hike interest rates at the rate they have since.

3 ms·

Right but it sounds like their investment didn't "go sour"; this isn't then an example of "greedy bankers", more like "lazy bankers" or possibly even "unforesee

by Zetice 4y ago

Right but it sounds like their investment didn't "go sour"; this isn't then an example of "greedy bankers", more like "lazy bankers" or possibly even "unforeseeable circumstances".

salawat 4y ago
....Do you not understand that a bank is a creature of "we'll keep it safe until you need it?" That a bank, even if the ultimate investment of float they did, finds themselvesbin a position they cannot reconstitute sufficient float to pay out it's liabilities has ultimately engaged in bad/risky investments? Risk can happen in terms of "Wow those turned out to be really crappy mortgages," ot in "Well, I just dumped all that money in single year TBills, and the interest rate went up!" Any bond in an increasing interest rate environment in the abscence of enough time being available to fully mature is setting principle on fire. Because you can't cash out, because no one will buy. That's what went sour. You bet peoples money on things'll stay the same... And you were wrong, and there was no time to paper over it with the coupons of those bills.
jgwil2 4y ago
> this isn't then an example of "greedy bankers", more like "lazy bankers" or possibly even "unforeseeable circumstances". A distinction without a difference. They made bad decisions for whatever reason, or they got unlucky for whatever reason, or some combination of the two. That's why companies go out of business. They are not special.
- Zetice 4y ago
  We distinguish intent all the time for various legal reasons, and if something done for the right reasons goes wrong, the empathy is certainly more readily available. I have yet to see any real reason to suggest this was anything other than a blunder. A relatable one too, as nobody in 2021 thought the fed would have to hike interest rates at the rate they have since.