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Gender: Do not display
Hometown: PA
Home country: USA
Current location: DC
Member since: Mon Nov 10, 2003, 07:36 PM
Number of posts: 41,955

About Me

If an H-1b has an American accent, they are probably not an H-1b. It's race, not citizenship. Americans are more diverse than you think. Millions of US citizens don't look the way you might expect. This fact is very important and will help us win elections.

Journal Archives

There were some cherry blossoms at the National Arboretum yesterday

Peak bloom is this week for the famous Yoshinos but there are other types of cherry trees that bloom before and after that.

Expect massive crowds at the tidal basin, as always. But not too many folks at the arboretum.

Global banking crisis: One big problem down. Too many others left to go


New York

Credit Suisse, hobbled for decades by mismanagement, scandal and bad bets, finally succumbed to the emerging global banking crisis. Its stunning and rapid takeover by rival UBS, orchestrated by Swiss authorities Sunday, took one giant, wobbling domino off the table. Hours later, a group of central banks from around the world boosted the movement of US dollars through the global financial system to keep loans flowing to households and businesses and support the world’s major economies.

The question investors and nervous customers want answered this week: What’s next? Are other banks about to fall – or be saved? Will regulators be forced to step in with more rescue plans?

In the United States, the banking crisis began nearly two weeks ago with the sudden collapses of Silicon Valley Bank and Signature Bank over a three-day span. That sent shockwaves through the global banking system.

Regional banks with similar profiles to SVB, including First Republic Bank (FRC), PacWest (PACW) and Western Alliance (WAL), have teetered on the brink over the past week. Anxious customers have pulled tens of billions of dollars in cash from the smaller banks and placed them with bigger institutions that are better capitalized.

To pay customers their withdrawals, regional banks have scrambled to access enough cash. First Republic received a $70 billion loan from JPMorgan Chase a week ago and another $30 billion lifeline from a consortium of 11 banks, organized by US regulators, on Thursday. That still appears to be insufficient, with First Republic’s shares tumbling another 33% Friday.

Our economy can switch from "nobody wants to work anymore" to "they're stealing our jobs" real quick. Hope for the best, but be prepared for the worst.

I will come steal your job if I have to.

'Let your woke flag fly': Psaki picks apart GOP's war on wokeism

How the Youth Vote Is Being Suppressed - Long Story Short The Daily Show

House MD and Kal Penn Confront The "Woke Mind Virus" The Daily Show

Ooh so scary

Here Are The Road Closures For Saturday's Rock 'N' Roll Half Marathon


The Rock n’ Roll Half Marathon and 5K is set to close a number of roads in downtown D.C. starting Friday evening and into Saturday night.

The race will begin at 8 a.m. Saturday near Constitution Avenue NW and 14th Street SW on the National Mall.

Runners will proceed on a course that loops around the city. This includes going west across the Memorial Bridge, proceeding north all the way to Harvard Street NW, going past the McMillan Reservoir, and then moving south down North Capitol Street NW before ending outside of the U.S. Capitol.

In all, the half marathon will cover just over 13 miles. The 5K will start near the U.S. Capitol, and proceed north to N Street NE before coming back to the Capitol grounds.

Because of these races, D.C. police have announced a slew of road closures with some starting as early as Friday at 6 p.m.

I would avoid driving downtown this Saturday. Metro is best.

Moody's puts six US banks on watch for potential downgrade


New York

Moody’s Investors Service placed six US banks on review for potential credit rating downgrades late Monday, in the wake of last week’s collapse of Silicon Valley Bank.

The credit ratings firm also downgraded Signature Bank deep into junk territory following that bank’s failure. Ratings downgrades can make it more expensive for companies to borrow money.

Moody’s warned it could similarly downgrade First Republic Bank (FRC), Zions (ZION), Western Alliance (WAL), Comerica (CMA), UMB Financial (UMBF) and Intrust Financial. The firm cited the “extremely volatile funding conditions for some US banks exposed to the risk of uninsured deposit outflows.”

The move comes after shares of regional banks got clobbered on Monday even after the US federal government stepped in with a massive intervention designed to protect depositors and prevent further bank runs. Regional bank shares rebounded in premarket trading on Tuesday.

No need to panic or make rash decisions. It's good to be cautious

Is this a bailout and 6 other questions about the SVB collapse

Gift Link: https://wapo.st/3TgaRX2

Why did the government step in?

When regulators took over SVB on Friday, many financial experts thought the bank’s collapse would have little impact on the broader U.S. economy.

After all, Silicon Valley Bank’s customer base mirrored its name: Its customers were venture capitalists, start-ups and other firms across the technology sector, which had laid off thousands of workers in recent months with few ill effects on the booming national economy.

What does the rescue plan do?

Officials tried to short-circuit the logic of a bank run and restore depositors’ confidence that their money is safe.

The Federal Deposit Insurance Corporation will guarantee all deposits at SVB and Signature — even those above the usual $250,000 limit. SVB held roughly $150 billion in uninsured deposits, and Signature Bank held more than $70 billion in uninsured deposits. Those customers will be able to access all their funds now, even though the banks collapsed. This sends the message that customers have no reason to move their money, because they won’t lose it if their bank goes down.

Is this a government ‘bailout’?

The announcement Sunday immediately set off a debate over whether these actions amount to a federal “bailout.”

On a call with reporters, a Treasury official emphasized that the federal intervention would not bring SVB or Signature back to life, as the enormously controversial bank bailouts during the 2008 financial crisis had done for banks that were close to failing. Their executives would not retain their jobs. These new safeguards were aimed at protecting people and businesses who had made a reasonable decision to put their money into an accredited and regulated bank — not investors who bought risky securities.

Here's a decent explainer for the current situation. I've provided a gift link if you want to read the whole thing for free.

Biden outlines consequences for SVB and Signature Bank executives

There's a warning sign in this otherwise hot economy

Gift Link: https://wapo.st/3L51Yxj

Americans are piling on debt again. Credit card debt is at an all-time high. A record number of people are paying more than $1,000 a month on auto loans, and nearly every online store is luring customers in by promising they can “buy now, pay later.”

This is a problem because a lot of people no longer have the money to pay back what they’ve borrowed.

Nearly 25 million people are behind on their credit card, auto loan or personal loan payments, according to a Moody’s Analytics analysis of Equifax data. The nation has not seen anything that high since 2009 in the midst of the Great Recession. It’s a warning sign in this hot economy.

It’s plausible the situation could deteriorate, especially if a recession arrives. Many households are also behind on their utility bills: 20.5 million homes had overdue balances in January, according to the National Energy Assistance Directors Association. The number of households applying for help to pay their utility bills is the highest it has been since 2011. Families are already making difficult choices about cutting food or medicine or heat from their budgets. If job losses climb, many will likely lose cars or homes.

There’s a confluence of factors driving this: Inflation remains stubbornly high, generous government support during the pandemic is ending, some families overspent and used car prices dropped so some owe substantially more than a car is worth. There was also a quirk in which many low-income borrowers suddenly had higher credit scores in recent years as they paid off debt. Now lenders are no longer as lenient. The grace periods are getting shorter.

This sounds like a recession indicator for the lower income people in our economy. It's likely to spread to the middle class soon. Wealthy will be fine of course. They got massive tax cuts.

Posted by IronLionZion | Wed Mar 8, 2023, 11:43 PM (4 replies)
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