Good old Tyler Durden tips his hand once again as high-level disinfo. The misdirection begins here:
So when the FDIC decided to guarantee every depositor at Silicon Valley Bank, including those with balances exceeding $250,000, it means they’re bailing out SVB’s wealthy customers at the expense of big Wall Street banks.
Let's take a look at that: "at the expense of big Wall Street banks". He'd like us to have in mind that some financial Masters of the Universe are not going to get bonus checks as large as they otherwise would. Then he launches off into this very long and tedious bond discussion.
But the FDIC does not insure "big Wall Street banks", unless that's what you call the retail banks you use, your employer uses, and the weed shop across town would like to use. Part of the interest and fees and charges that they collect from you and everyone you know is used to pay the dues to the FDIC.
If there is a "special assessment" by the FDIC on it's member banks, where will that money come from? Will all the tellers and branch managers get half-pay for a month? Of course not. It's coming from you and everyone you know. It's not even limited to taxpayers, as a bailout would be.
Except then again, maybe taxpayers will get it too. The FDIC is a US Government corporation that is "backed by the full faith and credit of the government of the United States of America". They may have to wait another week until the heat really blows over to pull that one.
Good old Tyler Durden tips his hand once again as high-level disinfo. The misdirection begins here:
Let's take a look at that: "at the expense of big Wall Street banks". He'd like us to have in mind that some financial Masters of the Universe are not going to get bonus checks as large as they otherwise would. Then he launches off into this very long and tedious bond discussion.
But the FDIC does not insure "big Wall Street banks", unless that's what you call the retail banks you use, your employer uses, and the weed shop across town would like to use. Part of the interest and fees and charges that they collect from you and everyone you know is used to pay the dues to the FDIC.
If there is a "special assessment" by the FDIC on it's member banks, where will that money come from? Will all the tellers and branch managers get half-pay for a month? Of course not. It's coming from you and everyone you know. It's not even limited to taxpayers, as a bailout would be.
Except then again, maybe taxpayers will get it too. The FDIC is a US Government corporation that is "backed by the full faith and credit of the government of the United States of America". They may have to wait another week until the heat really blows over to pull that one.
Anyway, thanks again, Tyler.
Yellen specifically clarified that their priority for the backstop were SIBs so... that's clearly not your local credit union
I, too, implicitly trust everything Janet Yellen says. If she declares it, how can it be otherwise?
You think she's lying about favoring big backs? Maybe but I'm not willing to bet my money on it.
I'm not sure where you find anyone doing any wagering, but, uh, good for you.