4 ms·
Yes, it feels like it felt just before the 2008 crisis - I was looking into banks financial statements and it was pretty incredible feeling - like wow it can’t
by TheAlchemist 4y ago
Yes, it feels like it felt just before the 2008 crisis - I was looking into banks financial statements and it was pretty incredible feeling - like wow it can’t be that bad ! Markets didn’t start to tank yet, so you don’t know if you’re crazy or not.
Same here - there are bubble signs everywhere (SPACs, startup valuations, joke money called Dogecoin with market cap of 10B$ !), banks are sitting at >600B$ of unrealized losses - this is all public knowledge.
A 166 years old Swiss bank was bailed out this weekend.
So yeah, it definitely feels like a big crisis ahead. Gradually then suddenly !
- mrzimmerman 4y agoHow was Credit Suisse bailed out? It seems like they were closed and sold, as happens with a bank that fails. Bailouts, by 2008 standards, would have been giving money to Credit Suisse so they could continue operating and avoid the fallout of their bad choices.
- TheAlchemist 4y agoNot the greatest term I agree. But how do we call what happened ? Shareholders still got some money (~3B$). If it wasn't for government intervention, the bank would be dead very soon. The thing with banking and finance is that incentives are very bad - you play with other's people money, on thin margins - you're de facto encouraged to take risks. If they pay off, you get big bonuses, if they don't - you just change the bank you work for.
- neural_thing 4y agoThe SNB provided government guarantees to the tune of 260B Swiss francs. That's a bailout.
- MrMan 4y ago[dead]