Banks get smoked as depositors run scared.
Fortunately we get a Sunday Night STICK SAVE!
We have some bones to pick - bad math and even worse work ethics.
Where are the bargains? We have some thoughts.
PLUS we are now on Spotify and Amazon Music/Podcasts!
Click HERE for Show Notes and Links
DHUnplugged is now streaming live - with listener chat. Click on link on the right sidebar.
Love the Show? Then how about a Donation?
Follow John C. Dvorak on Twitter
Follow Andrew Horowitz on Twitter
Warm Up
- Back from Central America!
- Largest bank failure since 2008!
- Fed will keep raising until something breaks - HELLO!!!!!!!!!!!!!
- Worst Fed Ever!
- General lack of any business sense - math clearly not a priority in last generations
- - No attention to detail - oversight sucks- management is limp
- Sunday Night STICK SAVE! (A joint statement from the various regulators involved said there would be no bailouts and no taxpayer costs associated with any of the new plans. )
Market Update
- Capitalism is Dead - Moral Hazard Lives On!
- 2-day panic attack with region banks - SVB Blowup
- DJIA down for the year
- California Banking system is imploding - RUN-ON-Bank
- CPI - not slowing down too much - 6% YoY
- Everyone now banking on less Fed hikes due to banking crisis - or none... Or cuts! (85% chance for 0.25% increase next week)
Coming up this week on Andrew's TDI Podcast - Guest, Anthony Scarramucci
BONE TO PICK
- All these tik-tok nubes - want to be a millionaire but have no idea what that means - LET me explain something from someone who works with lots of money all the time... It takes work and then more work
- - You can't just make it, you need to keep it. That is just as hard.
---- Making it is not just seeing it on social media - it is a grind and something special - hard work - which it seems is not what people want.
----- Sit at home, no oversight, playing on phone, personal time and personal boundaries that are above work AND not watching the details.
--- This is what creates the mess we see today - Then we want government to bail us out! Childish!
Assuming everyone knows what happened. Right?
- Banks started to get squeezed as assets/loan valuations got crushed under higher rates
- Fed pushed hard and banks did not risk adjust
- Bad oversight - SVB - Moodys was going to downgrade, Theil makes some noise about problems, stock offering to raise capital, sold bonds at loss - run on bank
- Started with other banks and the problems from overlevearaging with Crypto - all the dominoes falling had to impact firms (tech pulling cash to meet needs, other companies trimming up)
- Realization hit that regional banks could have more problems
The Fed is Actually Looking At Itself
- EPIC lack of oversight, blinders on as usual
- The Federal Reserve Board on Monday announced that Vice Chair for Supervision Michael S. Barr is leading a review of the supervision and regulation of Silicon Valley Bank, in light of its failure. The review will be publicly released by May 1.
- "The events surrounding Silicon Valley Bank demand a thorough, transparent, and swift review by the Federal Reserve," said Chair Jerome H. Powell.
- "We need to have humility, and conduct a careful and thorough review of how we supervised and regulated this firm, and what we should learn from this experience," said Vice Chair Barr.
- There will be findings, many many months out as to how they could have done better, but nothing will come of it.
----- Fox guarding the hen house. Should be independent but Fed is above it all - right?
Late Call - Or is it Early?
- Moody's cuts outlook on U.S. banking system to negative, citing 'rapidly deteriorating operating environment'
- The firm, part of the big three rating services, said it was making the move in light of three key failures that prompted regulators to step in Sunday with a dramatic rescue plan for depositors and other i...
Fortunately we get a Sunday Night STICK SAVE!
We have some bones to pick - bad math and even worse work ethics.
Where are the bargains? We have some thoughts.
PLUS we are now on Spotify and Amazon Music/Podcasts!
Click HERE for Show Notes and Links
DHUnplugged is now streaming live - with listener chat. Click on link on the right sidebar.
Love the Show? Then how about a Donation?
Follow John C. Dvorak on Twitter
Follow Andrew Horowitz on Twitter
Warm Up
- Back from Central America!
- Largest bank failure since 2008!
- Fed will keep raising until something breaks - HELLO!!!!!!!!!!!!!
- Worst Fed Ever!
- General lack of any business sense - math clearly not a priority in last generations
- - No attention to detail - oversight sucks- management is limp
- Sunday Night STICK SAVE! (A joint statement from the various regulators involved said there would be no bailouts and no taxpayer costs associated with any of the new plans. )
Market Update
- Capitalism is Dead - Moral Hazard Lives On!
- 2-day panic attack with region banks - SVB Blowup
- DJIA down for the year
- California Banking system is imploding - RUN-ON-Bank
- CPI - not slowing down too much - 6% YoY
- Everyone now banking on less Fed hikes due to banking crisis - or none... Or cuts! (85% chance for 0.25% increase next week)
Coming up this week on Andrew's TDI Podcast - Guest, Anthony Scarramucci
BONE TO PICK
- All these tik-tok nubes - want to be a millionaire but have no idea what that means - LET me explain something from someone who works with lots of money all the time... It takes work and then more work
- - You can't just make it, you need to keep it. That is just as hard.
---- Making it is not just seeing it on social media - it is a grind and something special - hard work - which it seems is not what people want.
----- Sit at home, no oversight, playing on phone, personal time and personal boundaries that are above work AND not watching the details.
--- This is what creates the mess we see today - Then we want government to bail us out! Childish!
Assuming everyone knows what happened. Right?
- Banks started to get squeezed as assets/loan valuations got crushed under higher rates
- Fed pushed hard and banks did not risk adjust
- Bad oversight - SVB - Moodys was going to downgrade, Theil makes some noise about problems, stock offering to raise capital, sold bonds at loss - run on bank
- Started with other banks and the problems from overlevearaging with Crypto - all the dominoes falling had to impact firms (tech pulling cash to meet needs, other companies trimming up)
- Realization hit that regional banks could have more problems
The Fed is Actually Looking At Itself
- EPIC lack of oversight, blinders on as usual
- The Federal Reserve Board on Monday announced that Vice Chair for Supervision Michael S. Barr is leading a review of the supervision and regulation of Silicon Valley Bank, in light of its failure. The review will be publicly released by May 1.
- "The events surrounding Silicon Valley Bank demand a thorough, transparent, and swift review by the Federal Reserve," said Chair Jerome H. Powell.
- "We need to have humility, and conduct a careful and thorough review of how we supervised and regulated this firm, and what we should learn from this experience," said Vice Chair Barr.
- There will be findings, many many months out as to how they could have done better, but nothing will come of it.
----- Fox guarding the hen house. Should be independent but Fed is above it all - right?
Late Call - Or is it Early?
- Moody's cuts outlook on U.S. banking system to negative, citing 'rapidly deteriorating operating environment'
- The firm, part of the big three rating services, said it was making the move in light of three key failures that prompted regulators to step in Sunday with a dramatic rescue plan for depositors and other i...
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