The Feds NEW Non Bail Out Bail Out Program As Other Banks Fail

originally posted by: DBCowboy
Relax, Biden says it's going to be okay.

(dramatic pause)

Another brutal assessment of the weekend bail out.

This is a de facto bailout of the banking system, even as regulators and Biden officials have been telling us that the economy is great and there was nothing to worry about. The unpleasant truth—which Washington will never admit—is that SVB’s failure is the bill coming due for years of monetary and regulatory mistakes.

....more

There’s also a question of the legality of such a guarantee. The FDIC created a “transaction account guarantee” program amid the 2008 panic, but Congress explicitly let it expire in Dodd-Frank. Congress set the $250,000 insured limit to protect average Americans, not venture investors in Silicon Valley.

The FDIC may have resorted to its “systemic risk exception” for SVB and Signature, but this is a stretch considering their size. The joint statement by regulators said it received the required two-thirds vote of both the FDIC and Fed boards, and we’d like to see the creative legal work by the Office of Legal Counsel at the Justice Department. The Fed is acting as it should as a provider of liquidity to all comers.

But it’s going further and offering one-year loans to banks against collateral of Treasurys and other fixed-income assets. The Fed will value these assets at par, which means banks don’t have to sell their assets at a loss. The Fed is essentially guaranteeing bank assets that are taking losses because banks took duration risk that Fed policies encouraged. This too is a bailout.

www.wsj.com... reflink=desktopwebshare_permalink

Even left leaning folks call this a bail out that put's
American's at risk and threatens the value of the
dollar.

Despite the fact that no new legislation has been introduced in response to the current bank failures, many analysts are calling attention to how taxpayer dollars have still been put at risk by the situation. “I consider [this] a bailout,” economist Dean Baker of the Center for Economic Policy and Research, a left-learning think tank, told in an email The Hill. “It puts taxpayer dollars at risk (we may not end up paying anything) for a group of people, large depositors, who have no claim to it. I think it was the right thing to do, given the reality of the contagion we are seeing, but it is a bailout.”

thehill.com...

Anything government funded tracks back to tax payers. It’s a bail out. Any other definition is just a word game.

originally posted by: AugustusMasonicus

originally posted by: amicusbrief
This whole project is much more developed than most people realize or know.

Actually, I do know, I work with them. It isn't even close to implementation.

Do you know, or care to guess, at what might back a Federal Reserve CBDC?

Gold? Oil? Bitcoin? USD? Bonds? Decentralized distributed ledger technology and a finite supply? Faith and Credit?

a reply to: wdkirk

also a sign of no risk capitalism..

if we can still call it that..

originally posted by: IndieA
Do you know, or care to guess, at what might back a Federal Reserve CBDC?

Gold? Oil? Bitcoin? USD? Bonds? Decentralized distributed ledger technology and a finite supply? Faith and Credit?

Nothing will back it other than FF&C like the current Federal Reserve notes, it's merely a digital dollar in the literal sense.

originally posted by: AugustusMasonicus
Nothing will back it other than FF&C like the current Federal Reserve notes, it's merely a digital dollar in the literal sense.

That sounds like a house of cards that won't last long in a strong wind.

It sounds a lot like something I was involved with concerning the Movie industry. They said that digital copies of their movies being traded on the internet for free were just as real as the authentic DVD versions they sell at stores. So, even though I had never dowloaded anything illegal myself, I thought I'd do my part and help them out. I scanned some dollar bills and sent several digital copies of them, attached to an e-mail, to help with their bottom line. You know, since digital copies of things are just as real, according to them.

I never heard back from them with a thanks or anything. I wonder why?

a reply to: TrulyColorBlind

I'm not sure what your point is as that's not how a digital currency functions.

originally posted by: AugustusMasonicus
I'm not sure what your point is as that's not how a digital currency functions.

So, you're claiming a digital currency will always be worth "face value" and can never fail? My point is that digital currency isn't worth the paper it's printed on, to coin a phrase. Do you get my point now?

originally posted by: TrulyColorBlind
So, you're claiming a digital currency will always be worth "face value" and can never fail? My point is that digital currency isn't worth the paper it's printed on, to coin a phrase. Do you get my point now?

If you think the dollar will 'fail' at some point than so will its digital counterpart. This isn't a savior in high tech form, it's just a different means of conveyance and exchange, although if the decision is made legislatively it can be the compulsory means of exchange with the United States government by other sovereign nations.

originally posted by: AugustusMasonicus
If you think the dollar will 'fail' at some point than so will its digital counterpart.

I think even if you were to reverse that, I would still agree. As in "If I think digital currency could fail, then I think the dollar can fail as well. It's just that I know about dollars and I've used them for many years. What's the old expression? I'd rather deal with the devil I know than the one I don't know? Something like that.

a reply to: TrulyColorBlind

If you have a bank account your dollars are already digital. Are you paid with direct deposit? Do you pay bills or order online? A digital currency will just be another means of doing this but in a more streamlined manner.

This guy:

dailycaller.com...

Hmmmmmmm


a reply to: AugustusMasonicus

a reply to: amicusbrief

Call me next month when none of this happens.

Credit Suisse in big fall now... down many points, taking Danish banks with it in the decrease. Updated by Ritzau...