Sunday, March 12, 2023

MAGA: No bank bailouts

 

MAGA coming out swinging…  Silicon Valley leftists getting their clocks cleaned due to their own Democrat Biden people increasing risk free rate in unprecedented fashion as a desperate monetarist attempt to help him with his inflation problem last election year and continuing … 



Will need to at least get something out of it from Dems… like maybe approval of the political delay in TMTG/DWAC merger finally …  if they need a suggestion…



7 comments:

Peter Pan said...

Bailouts are a figure of speech. Lets go Brandon!

Peter Pan said...

Matt, do you get excited by politicking?

Matt Franko said...

Well politics runs policy … policy runs everything…

So you have to follow it…

CounterEconomist said...

It was not interest rate increases that caused the SVB failure. It was its poor management of Interest Rate Risk of the Banking Book (IRRBB). Most banks actually make money when interest rates increase.

Matt Franko said...

Banks aren’t regulated by their income statements…

Matt Franko said...

Feds RRP is competing with their own Depositories for deposits…

And Fed paying higher rates on RRP than banks on deposits …

So everyone takes deposits over to RRP and the banks don’t have reserves to clear the transactions so they have to liquidate their HQLA at reduced prices due to the rate hikes…

Peter Pan said...

Well politics runs policy … policy runs everything…

Which is why special interests run politics.