Name:	MartiniMan -	Reply
Subject:	Is our banking system in peril?
Date:	5/4/2023 11:46:37 AM

So far we have had worse banking failures in 2023 than in 2008-2009.  And today regional bank stocks are crashing as the markets realize that the difference between their stated value on their balance sheets, which is based on holding to maturity, is a farce if they end up needing more capital.  Read an article today that Charles Schwab holds the most of these kinds of securities and is at great risk of insolvency. 

This is the moral hazard created when they bailed out the banks in 2008-2009.  They continue to make bad decisions because they believe that the government can't let them fail.  I can assure you that if we have another banking crisis that spurs a run on banks, even if only by large depositors (as we saw with SVB) you can kiss your 404(k) and IRA values goodbye along with any cash in any bank in excess of $250K.....and even that may be at risk as the FDIC does not have the funds available to cover all those losses.

Name:	phil -	Reply
Subject:	Is our banking system in peril?
Date:	5/4/2023 12:43:05 PM

Yes it is in peril, and it will not be the last.

I laughed when the name Barney Frank associated with the 1st bank failure.

Name:	Talullahhound -	Reply
Subject:	Is our banking system in peril?
Date:	5/4/2023 1:40:45 PM

Just think what happens when Biden and McCarthy fail to resolve the debt ceiling - I read that Biden will likely pull out the 14th Amendment and ignore the debt ceiling and continue to spend.  If we default, it will be chaos.  Scary times ahead.  

Name:	Talullahhound -	Reply
Subject:	Is our banking system in peril?
Date:	5/4/2023 3:54:09 PM

Just think what happens when Biden and McCarthy fail to resolve the debt ceiling - I read that Biden will likely pull out the 14th Amendment and ignore the debt ceiling and continue to spend.  If we default, it will be chaos.  Scary times ahead.  

Name:	MartiniMan -	Reply
Subject:	Is our banking system in peril?
Date:	5/5/2023 12:22:14 PM

There will be no default.  We hear this nonsense every time but neither Congress nor the WH will allow that to happen as it would be an unmitigated disaster.  Difference this time is that the public will lay the blame where it belongs, with the Democrats, primarily Brandon.  They understand the wildly misnamed Inflation Reduction Act did the opposite and that we are $32T in debt and we spend more servicing that debt than any other Fed budget item.  They are already rightly concerned about our fragile economy and the looming banking crisis and know this is all that is needed to send us into financial chaos.

It's all a show and in the end Congress will agree to too much spending and the WH will not get their wish list of wasted money.  Just one  more reason I believe in limited Federal govt and more subsidiarity.