Insurance companies investing their reserves in improperly rated mortgage backed securities.
When foreclosures started to ramp up, nobody knew how much the investments were actually worth, so suddenly insurance companies were seeing their reserve money evaporate instantly.
Yes, very much this. It wasn't just the banks, it was the insurance companies that funded the banks that started to look that they could go under. This is not "safe auto". These are subsidiary insurers of the investment banks. You had investment banks whom had hedgefunds making terrible and irresponsible funding decisions with derivatives. Then you had insurance subsidiaries backing the hedgefunds that were also within the investment bank. Then you had some hedgefunds shorting those first hedge funds.
Once the defaults started to happen, the investment banks kept desperately trying to prop up the whole system because they couldn't understand what was happening. It took them nearly a year to realize that their own hedge funds were selling bad products to their own bank, while being insured by their own insurer, who was being forced to pay out to their own hedge funds that had shorted the first hedge funds. Nobody figured out how completely incestuous their own trading schemes were. Places like Wells Fargo thought it was skull-fucking some poor idiot until they blew a load in their own mouth and went; "What the hell! How could I be eating my own penis?! My god who's hand is this!!!"
True, but if First Republic falls, there's going to be a bank run. There's already a lot of banks losing deposits because people would rather buy bonds with higher interest rates. That's the force multiplier this time.
I'm really, really hoping, for the good of everyone, that First Republic can survive the year at least.
Oh no, honey. There's not going to be a run on the bank.
How you are you gonna run on the bank when you can't make a withdraw of over $100 every week?
How are you gonna run on the bank when your credit lines on your credit cards drop to $1000?
How are you gonna run on the bank when the bank isn't even open?
How are you gonna run on the bank when the ATM's are closed?
Without cash... what are you gonna run away with?
Didn't you know that we need an economic lockdown? Don't you understand that TV man said it's just like the virus. Don't you trust The Science when TV Man tells you we have to quarantine ourselves from the monetary pandemic? Don't you understand the importance of having a Great Reset of all debt?
There's not gonna be a bank run. And that should scare the shit out of everyone, because it means that the deflationary pressure of the collapsing economy isn't going to be on the banks. Just like the Lockdowns, it's going on your throat.
If you die, then you die. So long as John Kerry and Jeff Bezos keep their heads above water, your government will sacrifice the food in your mouths before letting them lose one fucking penny. Have you considered our Euthanasia program? Celebrate your abortions.
Anyways, you better have an ample supply of cash, silver, gold, and lead on you for 2023-2025
Unlike you, I don't think the banks have the power to enact the things you're talking about instantly on a worldwide scale, if only because there's too many fucking people in the US, and too many people with guns. I just don't see that sort of propaganda working a second time, but if you do, I understand why, considering what society is right now.
The banks absolutely have that power, and it really wouldn't take any effort to make it happen. All financial institutions rely on one another to protect their own investments. Most people bank with big institutions, including the exact ones we're talking about. A lot of people have BofA bank cards, or use Chase Bank (which is JP Morgan Chase). All those banks have to do to shut down your withdraw amount, is to just do it. And they would absolutely do it to keep you from preforming a run on the bank. Not only that, but the government would get involved in stopping you from engaging in a run on the bank. Including shooting you, but I don't think we'll see too many shootings or arrests, because it won't make a difference.
Literally all of those things are quite easy to do for the banks, or are otherwise easy to coerce smaller banks and credit unions to enforce.
But that doesn't have the same potential to launch the problem into other sectors of the economy.
Agriculture, manufacturing, communications, health care, logistics, technology, and entertainment didn't care about the bankruptcies and defaults. Banks collapsing left and right was just a problem for borrowers, not businesses funded by selling equities. They barely even cared as the rating agencies like Bear Sterns imploded.
But once AIG collapsed, THEN the threat became real for the rest of the economy.
In 2008 there was a force multiplier:
Insurance companies investing their reserves in improperly rated mortgage backed securities.
When foreclosures started to ramp up, nobody knew how much the investments were actually worth, so suddenly insurance companies were seeing their reserve money evaporate instantly.
Yes, very much this. It wasn't just the banks, it was the insurance companies that funded the banks that started to look that they could go under. This is not "safe auto". These are subsidiary insurers of the investment banks. You had investment banks whom had hedgefunds making terrible and irresponsible funding decisions with derivatives. Then you had insurance subsidiaries backing the hedgefunds that were also within the investment bank. Then you had some hedgefunds shorting those first hedge funds.
Once the defaults started to happen, the investment banks kept desperately trying to prop up the whole system because they couldn't understand what was happening. It took them nearly a year to realize that their own hedge funds were selling bad products to their own bank, while being insured by their own insurer, who was being forced to pay out to their own hedge funds that had shorted the first hedge funds. Nobody figured out how completely incestuous their own trading schemes were. Places like Wells Fargo thought it was skull-fucking some poor idiot until they blew a load in their own mouth and went; "What the hell! How could I be eating my own penis?! My god who's hand is this!!!"
True, but if First Republic falls, there's going to be a bank run. There's already a lot of banks losing deposits because people would rather buy bonds with higher interest rates. That's the force multiplier this time.
I'm really, really hoping, for the good of everyone, that First Republic can survive the year at least.
Oh no, honey. There's not going to be a run on the bank.
How you are you gonna run on the bank when you can't make a withdraw of over $100 every week?
How are you gonna run on the bank when your credit lines on your credit cards drop to $1000?
How are you gonna run on the bank when the bank isn't even open?
How are you gonna run on the bank when the ATM's are closed?
Without cash... what are you gonna run away with?
Didn't you know that we need an economic lockdown? Don't you understand that TV man said it's just like the virus. Don't you trust The Science when TV Man tells you we have to quarantine ourselves from the monetary pandemic? Don't you understand the importance of having a Great Reset of all debt?
There's not gonna be a bank run. And that should scare the shit out of everyone, because it means that the deflationary pressure of the collapsing economy isn't going to be on the banks. Just like the Lockdowns, it's going on your throat.
If you die, then you die. So long as John Kerry and Jeff Bezos keep their heads above water, your government will sacrifice the food in your mouths before letting them lose one fucking penny. Have you considered our Euthanasia program? Celebrate your abortions.
Anyways, you better have an ample supply of cash, silver, gold, and lead on you for 2023-2025
Unlike you, I don't think the banks have the power to enact the things you're talking about instantly on a worldwide scale, if only because there's too many fucking people in the US, and too many people with guns. I just don't see that sort of propaganda working a second time, but if you do, I understand why, considering what society is right now.
The banks absolutely have that power, and it really wouldn't take any effort to make it happen. All financial institutions rely on one another to protect their own investments. Most people bank with big institutions, including the exact ones we're talking about. A lot of people have BofA bank cards, or use Chase Bank (which is JP Morgan Chase). All those banks have to do to shut down your withdraw amount, is to just do it. And they would absolutely do it to keep you from preforming a run on the bank. Not only that, but the government would get involved in stopping you from engaging in a run on the bank. Including shooting you, but I don't think we'll see too many shootings or arrests, because it won't make a difference.
Literally all of those things are quite easy to do for the banks, or are otherwise easy to coerce smaller banks and credit unions to enforce.
But that doesn't have the same potential to launch the problem into other sectors of the economy.
Agriculture, manufacturing, communications, health care, logistics, technology, and entertainment didn't care about the bankruptcies and defaults. Banks collapsing left and right was just a problem for borrowers, not businesses funded by selling equities. They barely even cared as the rating agencies like Bear Sterns imploded.
But once AIG collapsed, THEN the threat became real for the rest of the economy.