Yesterday I presented some alternative views. Today, it’s possible to see some clarity emerging after the weekend developments. I turn here to Tom Luongo’s update views this morning, and especially because his take has been consistent. I also note that Danielle DiMartino Booth, presumably with insider input, believes that Powell is not “pivoting.” Short and sweet:
ya know, I dont know what Tom is talking about half the time. This was true when I would listen to him talk and Alex Krainer made what Tom was saying comprehensible.
I'm not sure he's even aware of Luongo, and his theories don't quite overlap, but conspiracy finance is his wheelhouse, and it makes for an interesting comparison.
Thank you for this. Seeing the Fed seemingly go along with a Yellen-driven depositor bailout, I thought Powell had finally sold us out. Letting banks borrow against LT bonds at par just kicks the can down the road, but, I guess, Powell still sees that as capital attraction to AMERICAN LT debt, offshore interests be damned.
Knowing that, as a political reality, taxpayers were ultimately going to be on the hook, I much preferred the proposal I heard over the weekend about banks being able to capitalize their losses from current sales of their LT bonds to make depositors whole and receive special, favorable amortization rates for those particular losses over time to make up the difference. Seemed like a more-stable way of bailing out American banks that could survive long enough to reap that benefit, while reining in excess debt.
The path chosen seems more like the gasoline-and-a-match approach, but I'm going to trust the analysis of Luongo, as our Head Sneetch, that Powell is indeed playing all sides against each other as the "Fix-It-Up-Chappie."
BTW, Credit Suisse is, indeed, good and rightly screwed. Pricing on their credit default swaps just hit a record, double that of the '08-'09 meltdown:
And the market is up. Swiss banks, local banks, guv'mint bankrupt and credit cards maxxed...what's to worry? If Powell doesn't cooperate, maybe the tooth fairy?
All over my head but reading this calms me some. Also, FWIW I read that Harry and his Duchess had quite a bit of money at SVB. Hope they lose it all. Sorry but...I do 😆
I think this will help the smaller local banks. It may help the big Gangster Wall Street parasites for the short term but they are still sitting on the multi trillion durative bubble that in my guess the interest rates going up is making it almost impossible for them to paper over this time. I hope at the end of the day the Gangster Wall Street will finally be broken up and scattered into the wind they have worked against this country since it founding. Bring back the Hamilton American system it has worked every time it was tried.
I wish some of you guys had posted your thoughts! :) I am too old and too nervous and not high-finance literate, especially when banks are failing. So, get busy and help calm me down. Of course Mark Wauck is my go-to guy, but I like to see things confirmed. Thank you. :)
ya know, I dont know what Tom is talking about half the time. This was true when I would listen to him talk and Alex Krainer made what Tom was saying comprehensible.
Luongo acolyte Phil Gibson has a summary post already:
https://qpol.substack.com/p/same-old-song-and-dance-of-ponzi
I'm sure Tom himself will have a long-form writeup on the bank failures soon enough.
Meanwhile, Mathew Crawford is already into part 2 of his take:
https://roundingtheearth.substack.com/p/why-would-silicon-valley-be-ground-e24
I'm not sure he's even aware of Luongo, and his theories don't quite overlap, but conspiracy finance is his wheelhouse, and it makes for an interesting comparison.
Thank you for this. Seeing the Fed seemingly go along with a Yellen-driven depositor bailout, I thought Powell had finally sold us out. Letting banks borrow against LT bonds at par just kicks the can down the road, but, I guess, Powell still sees that as capital attraction to AMERICAN LT debt, offshore interests be damned.
Knowing that, as a political reality, taxpayers were ultimately going to be on the hook, I much preferred the proposal I heard over the weekend about banks being able to capitalize their losses from current sales of their LT bonds to make depositors whole and receive special, favorable amortization rates for those particular losses over time to make up the difference. Seemed like a more-stable way of bailing out American banks that could survive long enough to reap that benefit, while reining in excess debt.
The path chosen seems more like the gasoline-and-a-match approach, but I'm going to trust the analysis of Luongo, as our Head Sneetch, that Powell is indeed playing all sides against each other as the "Fix-It-Up-Chappie."
BTW, Credit Suisse is, indeed, good and rightly screwed. Pricing on their credit default swaps just hit a record, double that of the '08-'09 meltdown:
https://www.zerohedge.com/markets/credit-suisse-cds-hits-record-high-silicon-valley-banking-crisis-spreads-europe
And the market is up. Swiss banks, local banks, guv'mint bankrupt and credit cards maxxed...what's to worry? If Powell doesn't cooperate, maybe the tooth fairy?
All over my head but reading this calms me some. Also, FWIW I read that Harry and his Duchess had quite a bit of money at SVB. Hope they lose it all. Sorry but...I do 😆
I think this will help the smaller local banks. It may help the big Gangster Wall Street parasites for the short term but they are still sitting on the multi trillion durative bubble that in my guess the interest rates going up is making it almost impossible for them to paper over this time. I hope at the end of the day the Gangster Wall Street will finally be broken up and scattered into the wind they have worked against this country since it founding. Bring back the Hamilton American system it has worked every time it was tried.
I wish some of you guys had posted your thoughts! :) I am too old and too nervous and not high-finance literate, especially when banks are failing. So, get busy and help calm me down. Of course Mark Wauck is my go-to guy, but I like to see things confirmed. Thank you. :)