Silicon Valley Bank fails and rattles markets
- Thread starter rafterman
- Start date
Its not a goner.
Check post #102 of this thread.
Its currently down 60% https://www.google.ca/search?as_q=c...ch=&as_occt=any&safe=images&as_filetype=&tbs=
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Ok.
Your $1million dollar 'catch a falling knife'
So employing your theory of financial alchemy which magically transforms a falling knife into a goldmine in a short time, NOW is the time to double, triple down and buy another million or so shares or should you wait for it to lose another 50% or 88% of it's value?
That's why I was cautious and said I don't like investing in banks/businesses that depend on the whims of the government as an investor.
You're subject to the vagaries of the central bank and the government. They tire of your enterprise or they don't like the people behind it and decide they're done with you. Then when the government regulators rolls the weak bank up into a healthy bank, they basically decide how much you win or lose.
Case and point........the Credit Suisse AT1 bondholders are being wiped out. However, the shareholders are receiving something from the UBS deal. The Swiss bank regulator says this should be expected by the nature of the AT1 bonds, but the European Union regulators state they would have handled this differently. So even if you play distressed penny stocks and penny bonds how do you know how the bank regulators will call it?
I'm not an expert on banking, but know a bit more than most. In these liquidity crises, some banks have decent balance sheets and need some money to calm the markets. Others with far less than spectacular balance sheets benefit greatly from extremely cheap government money. It's not hard to figure out that if someone lends you money at ridiculously low rates that you will be able to turn around invest it and make some profits hence building back equity.
That was the legitimate beef with the global 2008-2009 bank bailouts. If I recall, weren't some banks taking cheap emergency money lent from the government then turning around and investing the money in government treasuries. Not a bank operation that was exactly investing in and stimulating the weak economy.
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First of all, I never bought any CS stock.
Second of all, when investing in stocks you have to be patient and give it years instead of 4 days
It was quite unprecedented that the At1 bondholders was wiped out, while shareholders got some crumbs.
But the At1 bonds were created as bail in bonds after 2009.
I believe the European bank regulated have said they will have precedence over stock.
I read the European bank regulators in a similar situation would not necessarily subordinate AT1 bondholders to stockholders in Reuters. Reuters did not cite a quote or an official statement. In fact, before I posted that here I double-checked the article. I went back and the article had been edited.
In any event, AT1 debt securities in other bank names dropped as a result of Credit Suisse.
It's a breakout!
Time to reload upwards and onwards!
Catch a soaring rocket before it reaches the edges of the known universe!
What are u waiting for?
Buy, buy, buy and then buy, buy, buy some more!!!
