Horse Racing Forum - PaceAdvantage.Com - Horse Racing Message Board

Go Back   Horse Racing Forum - PaceAdvantage.Com - Horse Racing Message Board > Off Topic > Off Topic - General


Reply
 
Thread Tools Rate Thread
Old 03-15-2023, 05:26 PM   #16
Inner Dirt
Registered User
 
Join Date: Jan 2015
Location: Beaverdam Virginia
Posts: 8,806
Quote:
Originally Posted by xtb View Post
I heard that Musty could usually get mail into the correct mailbox.

I thought he was good at licking stamps and windows, then when self adhesive stamps became common place 20 years ago he retired before his job as stamp licker was eliminated.
Inner Dirt is online now   Reply With Quote Reply
Old 03-15-2023, 07:33 PM   #17
Andy Asaro
Registered User
 
Join Date: Mar 2017
Posts: 5,358
Andy Asaro is online now   Reply With Quote Reply
Old 03-15-2023, 07:40 PM   #18
Andy Asaro
Registered User
 
Join Date: Mar 2017
Posts: 5,358
Andy Asaro is online now   Reply With Quote Reply
Old 03-15-2023, 07:44 PM   #19
Tom
The Voice of Reason!
 
Tom's Avatar
 
Join Date: Mar 2001
Location: Canandaigua, New york
Posts: 110,009
Quote:
Originally Posted by PaceAdvantage View Post
tee hee hee!
They are so proud of him back at the Mothership!

__________________
Who does the Racing Form Detective like in this one?

Last edited by Tom; 03-15-2023 at 07:46 PM.
Tom is online now   Reply With Quote Reply
Old 03-15-2023, 10:02 PM   #20
mostpost
Registered User
 
mostpost's Avatar
 
Join Date: Oct 2007
Location: North Riverside, Il.
Posts: 15,218
Quote:
Originally Posted by Andy Asaro View Post
Keep trying. That headline doesnít tell you those were Republican leaders who wanted Newsom to recuse himself. But, recuse himself from what? The state of California has nothing to do with actions taken by the Federal government. All Newsom was doing was commenting on those actions.
__________________
"When you come at the King, You'd best not miss." Omar Little
mostpost is online now   Reply With Quote Reply
Old 03-15-2023, 10:13 PM   #21
mostpost
Registered User
 
mostpost's Avatar
 
Join Date: Oct 2007
Location: North Riverside, Il.
Posts: 15,218
Quote:
Originally Posted by Andy Asaro View Post
Do you really think that caused SVB to collapse. $73,000,000 is less than.0349% than the bankís total assets. Besides thatís a good contribution. Better than contributing to the Trump or. DeSantis campaigns.
__________________
"When you come at the King, You'd best not miss." Omar Little
mostpost is online now   Reply With Quote Reply
Old 03-15-2023, 11:10 PM   #22
Jeff P
Registered User
 
Jeff P's Avatar
 
Join Date: Dec 2001
Location: JCapper Platinum: Kind of like Deep Blue... but for horses.
Posts: 4,840
Quote:
Originally Posted by mostpost View Post
I am far from an expert on banking regulations. If you know squat plus very little.

This is what I do know. Trump changed the threshold for which banks could be regulated from banks with assets over $50B to banks with over $250B. This meant many very large banks were no longer subject to regulation.

Nobody is saying deregulation is the only problem. Bad decisions by SVB is certainly a major factor. But proper regulations may have caught those bad decisions before they caused such damage...
In post#80 on page 6 of the other thread Mike/Paceadvantage posted a reply to your post about the Dodd-Frank-Trump rollback. He linked to a Business Insider article quoting Barney Frank, former Chairman of the House Financial Services Committee and co-author/co-sponsor of Dodd-Frank.

Quote:
Notably, Barney Frank, co-author of the Dodd-Frank Act, told Bloomberg on Sunday that if his original bill wasn't passed, "we'd be seeing a lot more damage these days," but he doesn't necessarily blame Trump's rollbacks for SVB's fallout.

"I don't think that had any effect," Frank said. "I don't think there was any laxity on the part of regulators in regulating the banks in that category, from $50 billion to $250 billion."
Do you have a response to that? I'd be interested in your own thoughts.

Below are some of my thoughts about why Silicon Valley Bank in California and Signature Bank in New York went under:

It was incompetence.

We've had Goldilocks conditions and easy money for so long that many of the acting members on the Boards of Directors of present day banks got caught off guard.

There's also the makeup of the members on the Boards of Directors of present day banks.

According to this MSN article, Silicon Valley Bank's Board of Directors had just a single member with actual investment banking experience.

Quote:
Just one member of Silicon Valley Bank's board of directors had a career in investment banking, while the others were major Democratic donors, it has been revealed.
They never saw it coming.

But Imo, if you are on the Board of Directors of a bank:

You should have seen it coming.

If not you never should have been on the Board of Directors of a bank in the first place.

Because it's your freaking job to see it coming.

Fed policy over the past 13 years (zero interest rates/quantitative easing) led to massive amounts of VC money pouring into startups - 90% of which will never be profitable.

This, combined with runaway spending by Congress, created an environment of easy money.

Injecting too much money into the system ALWAYS (as in all throughout recorded history) creates inflation.

Remember when they told us Inflation is transitory?

Remember when the Fed told us we have Tools to fight inflation?

Q. Do you know what those tools are?

A. Higher interest rates. High enough for long enough until something breaks.

And to a lesser extent quantitative tightening. The Fed selling bonds that were added to its balance sheet during quantitative easing.

That's the playbook.

Higher interest rates for long enough until something breaks.

Well something broke.

Customers have very little say when it comes to regulation of the banking industry.

But they absolutely DO have a choice when it comes to where they keep their money.

And when you think your money is at risk because your bank doesn't have enough assets to cover account balances:

You get your money out.

And that's exactly what happened.

Banks make money by taking in deposits and:

1. Loaning out money at a higher interest rates than they pay on deposits.

2. Investing money and earning higher rates of return than they pay on deposits.

3. To a lesser extent nickeling and diming us with fees.

Silicon Valley Bank had too much money tied up (relative to deposits) in long term low interest rate securities.

When inflation arrived - as it ALWAYS does when too much money is injected into the system:

The Fed began using its Tools:

Higher interest rates for long enough until something breaks.

As the Fed hiked interest rates month after month the value of Silicon Valley Bank's long term low interest rate securities fell.

Eventually the value of securities held by Silicon Valley Bank became less than the amount of money customers had on deposit.

And the result was a good old fashioned bank run.

ZeroHedge 03-15-2023
Passing The Buck On The SVB Bank-Run:
https://www.zerohedge.com/markets/pa...k-svb-bank-run

Quote:
Over the last 72 hours, the demise of Silicon Valley Bank has been dissected in the media. What went wrong seems perfectly clear. SVB had a deluge of short-term deposits coming into the bank during the pandemic. Almost 90% of those deposits exceeded the FDICís insurance limits of $250,000. The bank invested those deposits in billions of dollars of low-rate, long-term debt issued by the federal government and government agencies. When rising interest rates eroded the value of those investments, their depositors, fearing SVB would fail, pulled their deposits out of the bank. Unable to meet the demand for cash, the bank closed its doors. It was a classic run on the bank.
Quote:
In 1991, I wrote my senior thesis, ďThe Effects of Asset Size on the Level of Interest Rate Risk in Commercial Banks.Ē While that may seem like a particularly dull topic to fixate on for a semester, at the time it was timely. On Sept. 19, 1990, Charles Keating, the former CEO of Arizona-based Lincoln Savings and Loan Association, appeared on the front page of the New York Times in handcuffs. Keating was the poster child of financial mismanagement in the savings & loan crisis, having spent company money lavishly on personal luxuries. That crisis eventually cost U.S. taxpayers over $130 billion and almost ended the political career of a first-term United States senator, John McCain, who was one of five senators who intervened with regulators on behalf of Lincoln Savings. S&L executives went to jail. One-third of all thrifts failed. And, yes, shareholders, bondholders, and even some depositors lost billions of dollars.

Financial fraud committed by Keating and others was clearly partially to blame for the crisis that ensued. The primary villain, however, was something far more mundane and the same thing that took down Silicon Valley Bank: interest rate risk. S&Ls were legally required to invest almost exclusively in long-term, fixed-rate home mortgages. When interest rates skyrocketed in response to the inflation of the 1970s and 1980s, depositors fled S&Ls for newly formed money market accounts that paid four times as much interest. Unable to meet depositor demands without selling their low-rate mortgage portfolios at a significant discount, most S&Ls were technically insolvent. The government came up with an accounting gimmick that allowed them to write off their losses on mortgages over a long period. That fix ensured that S&Ls kept their doors open for the time being. The losses they were writing off were so large, however, if the S&Ls didnít make high-risk, high-return investments, something they were ill-prepared to do, their failure was certain.

The question that I was looking to unpack in my thesis was simple: Are big banks better than small banks at managing interest rate risks? Having worked at a small, rural bank during the summers, I was exposed to the very detailed work they did every month to measure what would happen to the bankís portfolio in varying interest rate environments. This was a topic of discussion at every monthly board meeting and impacted the types of loans and investments the bank was willing to make.

Larger banks had access to more sophisticated tools for managing interest rate risks. I wanted to know whether those tools were more effective than the simple measures available to a country bank. Based on the data available at the time, small banks were just as effective at managing interest rate risks as large banks.

When the Silicon Valley Bank debacle is unpacked, like the savings and loan crisis, there will be plenty of blame to spread around. Regulators, the Trump administration, and politicians who received SVBís financial support, purportedly for supporting changes to banking regulations, are already being vilified in the press and on social media. Populist politicians from both sides of the aisle (except those from California and New York) are already pointing their fingers at venture capitalists who stoked the fear of a contagion in order to cajole the government into backstopping SVB, thereby saving themselves billions of dollars.

The failure of SVB, however, is driven almost exclusively by one thing Ė incompetence. Both regulators and bank management ignored something that almost every country banker in 1990 had figured out Ė you canít finance long-term investments with short-term money.


-jp

.
__________________
Team JCapper: 2011 PAIHL Regular Season ROI Leader after 15 weeks
www.JCapper.com

Last edited by Jeff P; 03-15-2023 at 11:12 PM.
Jeff P is online now   Reply With Quote Reply
Old 03-15-2023, 11:13 PM   #23
PaceAdvantage
PA Steward
 
PaceAdvantage's Avatar
 
Join Date: Mar 2001
Location: Del Boca Vista
Posts: 83,578
This calls for far tighter controls on people's money so that runs on banks can never happen again...

Not really kidding. It will happen...and probably sooner rather than later...

The creeping fascism is real...and it's not coming from the right.
__________________
@paceadvantage | Support the site and become a today!
PaceAdvantage is online now   Reply With Quote Reply
Old 03-16-2023, 09:08 AM   #24
rastajenk
Just Deplorable
 
rastajenk's Avatar
 
Join Date: Mar 2003
Location: Lebanon, Ohio
Posts: 7,765
I think Fascism's pace is faster than 'creeping'.

It's kind of astonishing how quickly a society can turn on itself.
rastajenk is offline   Reply With Quote Reply
Old 03-16-2023, 10:49 AM   #25
Inner Dirt
Registered User
 
Join Date: Jan 2015
Location: Beaverdam Virginia
Posts: 8,806
Quote:
Originally Posted by TJDave View Post
I donít pay any fees.

One of the blessings of being old and paying my bills on time.

Businesses all pay banking fees so they will just pass the increases on to customers. These dumb ass Democrats who think businesses are going eat increased costs are 10 kinds of stupid. It is comical how they all push for increasing corporate taxes, then have Jen Psaki tell everyone it would be immoral for them to pass it on to customers.
Inner Dirt is online now   Reply With Quote Reply
Old 03-16-2023, 11:51 AM   #26
Inner Dirt
Registered User
 
Join Date: Jan 2015
Location: Beaverdam Virginia
Posts: 8,806
Thanks for the info Jeff P.
Inner Dirt is online now   Reply With Quote Reply
Old 03-20-2023, 04:22 PM   #27
davew
Registered User
 
Join Date: May 2011
Posts: 20,833
thank goodness the billionaires, demonrat donors and chinese start-ups got saved from their poor decisions ... and it won't cost anyone anything except for the people that buy stuff like food and fuel.
davew is offline   Reply With Quote Reply
Old 03-20-2023, 04:28 PM   #28
azeri98
Registered User
 
azeri98's Avatar
 
Join Date: Dec 2015
Location: Toronto
Posts: 1,785
Newsome is your version of Trudeau. Beware!
azeri98 is offline   Reply With Quote Reply
Old 03-20-2023, 09:56 PM   #29
horses4courses
Registered User
 
horses4courses's Avatar
 
Join Date: Jun 2009
Posts: 14,057
There he goes again.......

The other day Newsom cuts the price of insulin in Calif. by 90%.
That's soooooo fu*kin@ elitist.....................damn!
Crickets on here (no surprise).

https://www.cnn.com/2023/03/18/us/ca...lth/index.html
__________________
"Putting the good of the country before politics"
Read it and weep, cons!
horses4courses is offline   Reply With Quote Reply
Old 03-20-2023, 10:45 PM   #30
JustRalph
Just another Facist
 
JustRalph's Avatar
 
Join Date: Mar 2002
Location: Now in Houston
Posts: 51,012
Quote:
Originally Posted by horses4courses View Post
The other day Newsom cuts the price of insulin in Calif. by 90%.
That's soooooo fu*kin@ elitist.....................damn!
Crickets on here (no surprise).

https://www.cnn.com/2023/03/18/us/ca...lth/index.html
Years after Trump did it
__________________
ABANDON THE INNER CITY!
JustRalph is offline   Reply With Quote Reply
Reply




Thread Tools
Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

» Advertisement
Powered by vBadvanced CMPS v3.2.3

All times are GMT -4. The time now is 08:17 PM.


Powered by vBulletin® Version 3.8.9
Copyright ©2000 - 2023, vBulletin Solutions, Inc.
Copyright 1999 - 2023 -- PaceAdvantage.Com -- All Rights Reserved
We are a participant in the Amazon Services LLC Associates Program, an affiliate advertising program
designed to provide a means for us to earn fees by linking to Amazon.com and affiliated sites.