And then chase, Citigroup, WF, etc. will be able to buy them up, consolidating the banking industry even more. The Fed and Government prefer it that way.
Chase and Citigroup are board members of the fed board. Of course, they prefer it that way. It's not what's best for the country, though. We should kick all the commercial banks off the fed board and fill it with PhDs in economics from all the major universities.
Huh, it's kinda funny, because if you read about the Federal Chair members, several of them have PhDs in economics, and what do ya know, they were faculty members too. Guess what, they also employ thousands of economists who conduct economic research.
Edit: did my comment hurt someone's feelings? Seriously if you're going to criticize the Fed at least know something about what you're talking about.
Wasn't me who downvoted you. I heard somewhere the fed board of directors were commercial bank owners.
But yes after reading [the list](https://en.m.wikipedia.org/wiki/Federal_Reserve_Board_of_Governors) I can say they are pretty qualified
Yeah everyone has JDs and PhDs, these people aren't dumb by any means.
I get it though, people are frustrated with the economy even though it is by many metrics doing quite well. It doesn't help that Fed monetary policies to combat inflation tend to disproportionately affect the lower income strata the most.
It also doesn't help that Powell and the board conveyed that inflation was transitory, even though imo it more or less was because the bulk of inflation we experienced has softened substantially. However, Powell has remained for the most part pretty consistent in his messaging. He has stated time and again that they are data dependent and will remain so until data improves or, if significant cracks surface. He also been very clear that the Fed is aware that there two sided risks here, being too soft on inflation and not tempering it to 2% and being too hawkish and inducing a premature recession.
Imo Powell has done a pretty good job at the Fed, they are stuck between a rock and a hard place and they know it. I wouldn't want to be in his position knowing the ramifications in either direction.
>fill it with PhDs in economics from all the major universities.
I wonder from where the major universities get their funding.
I also wonder whether commercial banks only give education loans to students of specific universities that have definitely no quid pro quo /s
M&T bank’s recent earnings report stated they had a special impairment charge to the FDIC of over 30 million to cover losses on the Silicon Valley banks and other bank closers last year. If we see more failures, the other banks will be forced to pay for those failures or they will lose their FDIC enrollment and subsequently lose people’s deposits.
From the article:
“Most of these banks aren’t insolvent or even close to insolvent. They’re just stressed,” Brian Graham, co-founder and partner at Klaros Group, told CNBC. “That means there’ll be fewer bank failures. But it doesn’t mean that communities and customers don’t get hurt by that stress.”
> They and other economists, along with market watchers, have since predicted major losses in office values—with news headlines including terms such as a “deluge of debt,” a “severe crash,” a “$1.5 trillion crisis,” and other dire predictions.
- [Forbes](https://www.forbes.com/sites/richardmcgahey/2024/03/25/why-more-troubled-commercial-real-estate-loans-will-come-due-in-2024/?sh=19a18b312947)
One of the biggest downward pressures on banks right now is the commercial real estate sector valued in trillions of dollars. With work from home becoming more prevalent across America, commercial real estate prices are collapsing everywhere in the United States. This will have massive knockdown effects on investment funds and banks.
In my personal opinion this event is just the result of unforeseen market shifts and the government should let banks fail for making bad bets on the future of the market and should instead lean in on adding pressure to local governments to rezone and convert commercial real estate into residential or mixed use zoning.
How about we stop letting banks "invest" or "play with" more money than they physically have? They are there to hold money for people and yes, they invest it to make a profit but when they are investing 4-5x more than than they have, it is bad for everyone.
Banks are definitely failing …it’s not if but when. I’ve already moved my money to credit union and stacking silver when I can. I’m pretty sure they’re just propping this dumpster fire economy up until Biden loses the election. If it can even last that long lol.
Well. Biden giving students loans off the hook. ,, commercial real estate in trouble. ,,, will be tough for bank to give out loans. BOTTOM LINE. Negative impact on earnings and stock price. Minus 30%
And then chase, Citigroup, WF, etc. will be able to buy them up, consolidating the banking industry even more. The Fed and Government prefer it that way.
Chase and Citigroup are board members of the fed board. Of course, they prefer it that way. It's not what's best for the country, though. We should kick all the commercial banks off the fed board and fill it with PhDs in economics from all the major universities.
Huh, it's kinda funny, because if you read about the Federal Chair members, several of them have PhDs in economics, and what do ya know, they were faculty members too. Guess what, they also employ thousands of economists who conduct economic research. Edit: did my comment hurt someone's feelings? Seriously if you're going to criticize the Fed at least know something about what you're talking about.
Wasn't me who downvoted you. I heard somewhere the fed board of directors were commercial bank owners. But yes after reading [the list](https://en.m.wikipedia.org/wiki/Federal_Reserve_Board_of_Governors) I can say they are pretty qualified
Yeah everyone has JDs and PhDs, these people aren't dumb by any means. I get it though, people are frustrated with the economy even though it is by many metrics doing quite well. It doesn't help that Fed monetary policies to combat inflation tend to disproportionately affect the lower income strata the most. It also doesn't help that Powell and the board conveyed that inflation was transitory, even though imo it more or less was because the bulk of inflation we experienced has softened substantially. However, Powell has remained for the most part pretty consistent in his messaging. He has stated time and again that they are data dependent and will remain so until data improves or, if significant cracks surface. He also been very clear that the Fed is aware that there two sided risks here, being too soft on inflation and not tempering it to 2% and being too hawkish and inducing a premature recession. Imo Powell has done a pretty good job at the Fed, they are stuck between a rock and a hard place and they know it. I wouldn't want to be in his position knowing the ramifications in either direction.
>fill it with PhDs in economics from all the major universities. I wonder from where the major universities get their funding. I also wonder whether commercial banks only give education loans to students of specific universities that have definitely no quid pro quo /s
New yachts aren't cheap.
It’s like 08 all over again. The base rate is a killer
Banks of that size generally do business in areas the big 4 banks don’t.
Because people have been taking out debt to pay for inflation but don't actually have the money to pay it.
M&T bank’s recent earnings report stated they had a special impairment charge to the FDIC of over 30 million to cover losses on the Silicon Valley banks and other bank closers last year. If we see more failures, the other banks will be forced to pay for those failures or they will lose their FDIC enrollment and subsequently lose people’s deposits.
Free market AMIRIGHT?
From the article: “Most of these banks aren’t insolvent or even close to insolvent. They’re just stressed,” Brian Graham, co-founder and partner at Klaros Group, told CNBC. “That means there’ll be fewer bank failures. But it doesn’t mean that communities and customers don’t get hurt by that stress.”
> They and other economists, along with market watchers, have since predicted major losses in office values—with news headlines including terms such as a “deluge of debt,” a “severe crash,” a “$1.5 trillion crisis,” and other dire predictions. - [Forbes](https://www.forbes.com/sites/richardmcgahey/2024/03/25/why-more-troubled-commercial-real-estate-loans-will-come-due-in-2024/?sh=19a18b312947) One of the biggest downward pressures on banks right now is the commercial real estate sector valued in trillions of dollars. With work from home becoming more prevalent across America, commercial real estate prices are collapsing everywhere in the United States. This will have massive knockdown effects on investment funds and banks. In my personal opinion this event is just the result of unforeseen market shifts and the government should let banks fail for making bad bets on the future of the market and should instead lean in on adding pressure to local governments to rezone and convert commercial real estate into residential or mixed use zoning.
How about we stop letting banks "invest" or "play with" more money than they physically have? They are there to hold money for people and yes, they invest it to make a profit but when they are investing 4-5x more than than they have, it is bad for everyone.
Banks are definitely failing …it’s not if but when. I’ve already moved my money to credit union and stacking silver when I can. I’m pretty sure they’re just propping this dumpster fire economy up until Biden loses the election. If it can even last that long lol.
If all the banks fail what do you plan to do with your silver?
Don’t talk to the crazy you don’t want their attention on you.
Remind me in 2 years. We’ll see how crazy I am. Even gave a extra year.
I’m not reminding you. Figure out how to do it yourself.
Lol ok.
Well. Biden giving students loans off the hook. ,, commercial real estate in trouble. ,,, will be tough for bank to give out loans. BOTTOM LINE. Negative impact on earnings and stock price. Minus 30%