oarabbus_

10 ms·

31.
by oarabbus_ 4y ago
>what's the advantage of doing this over doing the right thing? So far it really looks like gross negligence rather than avarice. Yield chasing is equally gross negligence and avarice. I'm not sure what you mean by "what&
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by oarabbus_ 4y ago
>If those deposits are guaranteed by the government, and backstopped by the government, then there's absolutely no reason banks should be able to invest any of them. >Revoke banks ability to invest deposits. They can't get t
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by oarabbus_ 4y ago
It's odd that SVB's choice to forego short-dated securities keeps getting reframed as "they were a victim of a bank run" or "they were the victims of Fed raising rates too fast". Any normal, non-degnerate bond
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by oarabbus_ 4y ago
Huh? A bond portfolio always includes a significant amount of short-dated maturities to provide liquidity. SVBs decided to take on much more risk and forego short-maturations for extra yield. Yield chasing blows up overleveraged entity, not
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by oarabbus_ 4y ago
they purchased 10 year treasuries and 15-30 year MBS. This is pretty irresponsible, a normal bond manager not yield chasing would have had a decent component allocated to 1-3 year treasuries. You can literally call up your 401k/403b pr
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by oarabbus_ 4y ago
>The problem was that central planners reduced rates to near zero in the face of adversity, instead of using fiscal policy more aggressively as you suggest Why was reducing rates in response to the COVID crisis a "problem"?
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by oarabbus_ 4y ago
>Well, when people default on their loans and can't refinance them, they'll default and that money will disappear from the economy. That's on the bank underwriters, and that's when their balance sheets deserve to go l
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by oarabbus_ 4y ago
Any regular bond holding would include a mix of maturities - 1, 2, 5, 10 year bonds. This provides constantly maturing bonds leading to liquid cash with yield on the longest term instruments.
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by oarabbus_ 4y ago
Mostly treasury bills, some foreign currencies, and a small allocations to index funds probably.
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by oarabbus_ 4y ago
>SVB put themselves in a somewhat bad situation by heavily concentrating the high levels of deposits in 2019-2021 in long-term treasury bonds (which would not have been permitted had not the previous administration not rolled back Dodd-F
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by oarabbus_ 4y ago
So then it sounds like they probably had 10-15 banks (entirely reasonable for them to be expected to open this many accounts at unique banks, given their business model) which is a far cry from the 1200 OP complained about. If your entire
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by oarabbus_ 4y ago
>I am not sure if you were aware, but there are a lot of houses in the world. >In comparison, there aren't nearly as many high end, elite educational institutions. The college enrollment rate is under 70%, and I am not sure if yo
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by oarabbus_ 4y ago
>Did Circle and USDC trigger the sudden liquidity gap in SVP that triggered the fire sale of 21B at a loss? It seems unlikely that would be the case, 5.4B would represent only 2.5% of their AUM at the time of failure. However the Fed did
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by oarabbus_ 4y ago
>If you're like me and have 3yrs of (FAANG and growth stage startups) SWE and 1yr of product eng / TPM'ing you're basically fucked. I hope you find something soon, but let's be realistic here, claiming SWEs with
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by oarabbus_ 4y ago
>Still has a significantly smaller effect on the market than a bunch of education institutions coming together to collude. Citation needed. Again, the vast majority of Division 1 schools offer athletic scholarship. Where is this large co
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by oarabbus_ 4y ago
>Whether or not a couple houses in a couple block area, or 1 apartment building all "collude" to do something has very little effect on the competitive market of the massive housing industry. This is not correct. There are HOAs
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by oarabbus_ 4y ago
>Because houses in the same HOA are literally right next to each other. Like a block away, whereas the same is not true for schools. There are HOAs with tens of thousands of homes, spanning dozens of miles, this is not true.
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by oarabbus_ 4y ago
I don't see how this clarifies that it's not a appropriate metaphor. There are hundreds of schools or more that _do_ compete for consumers in that way. Similarly, HOAs in some areas may restrict boat parking. Other HOAs however,
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by oarabbus_ 4y ago
Binance announced today they will have USDC/USDT and other stablecoin trading pairs. https://www.binance.com/en/support/announcement/binance-adds... Individuals in many countries (but not the USA) have a
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by oarabbus_ 4y ago
Let's not act like Circle's options were either to put 3 billion in one bank, or open 1200 accounts at 1200 banks. -Purchase high-limit cash insurance from a Reinsurer like Lloyds of London or Berkshire Hathaway up to their underw
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by oarabbus_ 4y ago
>Small business depositors at Silicon Valley Bank should be made whole. Regulators need to conduct a backstop of depositors. We are not asking for a bank bailout. From where would the money come from, US taxpayers? How is this different
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by oarabbus_ 4y ago
>No one was chasing any yield. No one was taking any risks. It's a bank account. It is by definition a risk for a corporation (or individual) to keep over $250k at a single institution ($750k if including SIPC-protected accounts). R
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by oarabbus_ 4y ago
This seems like a rather exaggerated framing to absolve SVB of any responsibility for what happened, and is not accurate. SVB overleveraged into long-term bonds in 2021 when interest rates were at an all time low. A financial institution&#
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by oarabbus_ 4y ago
>No one index investing is going to feel this in a material capacity. Over what timeframe are you making this claim? A week? A year? 10? The entire index dropped, driven by a selloff in the Financial Services sector after FDIC placed the
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by oarabbus_ 4y ago
>The Fed knows that there is no real ongoing inflation. Can you cite any metric showing there is "no real ongoing inflation"? CPI, PPI, PCE, and other less-commonly used metrics all indicate ongoing inflation. It would be inter
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by oarabbus_ 4y ago
>I guess I'm just emphasizing that it's hard to believe that such a person is even a good data scientist. Odd take to be honest. Like suggesting you cannot believe someone is a good materials scientist, because their CAD/m
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by oarabbus_ 4y ago
I don't think anyone is making the claim any of these platforms don't cause harm - at least I haven't seen that claim being made. More relevant to the article, is it a net good or net bad? It's easy to make a claim motor
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by oarabbus_ 4y ago
>Anyway, for me, TikTok is scary. It is deeply optimized to savagely take advantage of every thing that is wrong with the human mind and use it to keep you inside the Skinner box. Also describes Youtube, Facebook, Snapchat, Twitter, Inst
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by oarabbus_ 4y ago
I'm not entirely sure I believe this argument that Tiktok is a different level of addictiveness than "traditional" social media (which IMO is a fake distinction with no fundamental difference to "$NEW" social media,
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by oarabbus_ 4y ago
I'm not sure I know for certain what it's trying to say.

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