Oprah had to be physically restrained

[danmand]

You would have preferred a bit of contagion?

After Clinton repealed Glass Steagall in 1999, any bank can enter into risky investments.

Now, if you guarantee all deposits, you basically have a system where:

1. If the risky investments work well, the bank get the profits.

2. if the risky investments fails, the Fed pays.

 

[Frankfooter]

After Clinton repealed Glass Steagall in 1999, any bank can enter into risky investments.

Now, if you guarantee all deposits, you basically have a system where:

1. If the risky investments work well, the bank get the profits.

2. if the risky investments fails, the Fed pays.

In this case the bank's investors will lose.
The depositors don't lose their money just those who invested in the bank.

That will have a bigger effect on bank management, they'll see that if they screw up they can lose their bank and investors but not panic the public and start a big run.

 

[Darts]

Most NoCal banks are in trouble,

"A new report shows that the California Public Employees Retirement System (CalPERS) received less than one percent on its investment, putting the country’s biggest pension fund at a stunning $100 billion shortfall.

Not surprisingly, California is ranked among the top nine in the states with the worst fiscal condition by the Mercatus Center, as of June 1. Here are each of the states that made the top nine in their rankings:
9 Most Bankrupt States In America: Is Yours On The List? | The Daily Wire

 

[richaceg]

In the us FDIC covers up to $250,000 doesn't it?

even if they cover 500k....thats like 1% money back for oprah....

 

[richaceg]

In this case the bank's investors will lose.
The depositors don't lose their money just those who invested in the bank.

That will have a bigger effect on bank management, they'll see that if they screw up they can lose their bank and investors but not panic the public and start a big run.

It doesn't stop from there....once they lose investors, they will also lose depositors and eventually close....

 

[richaceg]

Not only that. The bottom is falling off the commercial real-estate as well. The rising interest rates are really hurting the noncommercial mortgage business too, with more hikes on the way. And the retail is threading water(at best) due to increasing household expenses like energy. The economy in America is in deep, deep trouble.

the worst is yet to come....

 

[Darts]

the worst is yet to come....

Biden should get ready to start bailing out cities and states as well.

As we know, the "Biden Formula" for bailouts is to get the healthy entities to fund the bailouts. For example, in the case of banks Biden will raise the FDIC premium on the healthy banks. He will do the same thing in the case of cities and states as well.

 

[Darts]

"The key takeaway from the Mercatus Center’s list is that the vast majority of the states in poor fiscal health are blue states, demonstrating yet again how lavish government spending is unsustainable and economically unviable in the long run. The dismal return on CalPERS’s investments are particularly reflective of that common sense economic reality."
9 Most Bankrupt States In America: Is Yours On The List? | The Daily Wire

 

[mitchell76]