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I don't fully understand your take here. The fed lifeline policy is still in effect. It was put into effect after SVB to prevent future issues. There is now con
by SeanAnderson 3y ago
I don't fully understand your take here. The fed lifeline policy is still in effect. It was put into effect after SVB to prevent future issues. There is now contagion with the policy still in place.
What am I not understanding?
- henriquez 3y ago> What am I not understanding? Fed will print money.
- SeanAnderson 3y agoAre you saying you feel a new policy will be implemented in response to FRB going into receivership? Or just memeing? :s
- slaw 3y agoSee the title. > US officials lead urgent rescue talks for First Republic There is no need for any urgent rescue talks. Fed will print money.
- SeanAnderson 3y agoIf that were true then the stock price wouldn't have tanked 50% today, IMO. FRB is going into receivership in about five hours, bet.
- JumpCrisscross 3y ago> then the stock price wouldn't have tanked 50% today Depositors are probably protected. Bondholders and equity holders, probably not. Last I heard, PNC was the front runner.
- flangola7 3y ago>There is now contagion with the policy still in place. The situation is worse than it appears. SVB was a lung tumor, but the lungs aren't the only organs that have metastasized.
- SeanAnderson 3y agoI'm not completely convinced by that. Do you have any source information to back it up? I would love to have more to read. I went through the Top 20 US banks by AUM this morning and none are down except for First Republic. This contrasts what occurred in March where the entire sector was panicked. From my POV, if there is contagion outside of startup tech banks then investors aren't signaling that FRB is a canary in the coal mine for them. I don't have any deeper or private knowledge of the financial sector, though.