[Levin]

UPDATED MAR 13, 2023, 6:05 PM SGT


SYDNEY/NEW YORK - US regulators may have stemmed a banking crisis by guaranteeing deposits of collapsed Silicon Valley Bank (SVB), but some experts warn that the move has encouraged bad investor behaviour.

......

by guaranteeing that depositors would lose no money, the authorities have again raised the question of moral hazard – the removal of people’s incentive to guard against financial risk.

“This is a bailout and a major change of the way in which the US system was built, and its incentives,” said Mr Nicolas Veron, senior fellow at the Peterson Institute for International Economics in Washington. “The cost will be passed on to everyone who uses banking services.”

He added: “If all bank deposits are now insured, why do you need banks?”

......

“If the Fed is now backstopping anyone facing asset/rates pain, then they are de facto allowing a massive easing of financial conditions as well as soaring moral hazard,” Rabobank strategists Michael Every and Ben Picton wrote in a note to clients.

......

in doing so, “they took another step towards demonstrating that they are unwilling to allow free markets to sort themselves out”, said Toronto-based independent proprietary trader Kevin Muir.

Some analysts said the US actions were not a bailout, as shareholders and unsecured debt holders of SVB would not be covered.


https://www.straitstimes.com/business/ex...svb-crisis

[sgbuffett]

How stupid can some people be.

Its like saying fireman should not rescue people so they learn not to play with fire.

Those depositors have they done any thing wrong to deserve losses?
The govt is only ensuring depositors get back their funds while creditors and shareholders suffer losses.

[ArielCasper]

Ppl last time laugh at CCP for bailing out their state enterprise. US bail out their bank same same.

To US, everything has its risk, u do biz, place deposit, eat, shit all at yr own risk. That why fail system will clean up itself and the remain grow stronger.

How, US doing exactly what it kao pei at ccp previously

[Levin]

Ppl last time laugh at CCP for bailing out their state enterprise. US bail out their bank same same.

To US, everything has its risk, u do biz, place deposit, eat, shit all at yr own risk. That why fail system will clean up itself and the remain grow stronger.

How, US doing exactly what it kao pei at ccp previously

They laugh?? What for? US had bailed out so many companies through the centuries. Close to a thousand in modern times.

https://projects.propublica.org/bailout/list/simple

[Cmpunk]

Banks need to collapse every few years than economic will move on.

[limkopi]

But mighty USA still preaching to the rest of the world how they should run their countries and businesses- the US way.

[singlon]

https://benjaminfulford.net/2023/03/13/m...-implodes/

[singlon]

'london whales'

[sgbuffett]

Ppl last time laugh at CCP for bailing out their state enterprise. US bail out their bank same same.

To US, everything has its risk, u do biz, place deposit, eat, shit all at yr own risk. That why fail system will clean up itself and the remain grow stronger.

How, US doing exactly what it kao pei at ccp previously

China govt has major stakes in the big banks.
They are more or less nationalised and support govt policy.
If they get jnto trouble it could be because govt ask them to lend more to property developers or state enterprises etc.
So bailout is jntegrated to its operations through the govt bailout Bank like Huarong.

Became they operation under so much control from govt bailout is a non issue....and I did not see problem with this.

The problem is the CCP also bailout ship builders,  constriction companies that are state owned these cost tax payers alot of money and penalise the competitive players. 
Such bailouts will hinder China's economic progress as they support inefficient players.

[singlon]

[Notdumb]

China govt has major stakes in the big banks.
They are more or less nationalised and support govt policy.
If they get jnto trouble it could be because govt ask them to lend more to property developers or state enterprises etc.
So bailout is jntegrated to its operations through the govt bailout Bank like Huarong.

Became they operation under so much control from govt bailout is a non issue....and I did not see problem with this.

The problem is the CCP also bailout ship builders,  constriction companies that are state owned these cost tax payers alot of money and penalise the competitive players. 
Such bailouts will hinder China's economic progress as they support inefficient players.

U sibeh talk coks..... what about SG? SPH, Keppel, Semcorp....SIA and many more. Worst they paid themselves $m at the expense of Sinkees $.

[singlon]

Rank by derivative exposures

[WhatDoYouThink!]

Aiya everything smart angmoh daddy does has good reasons and properly managed. Wherase Ahtiongs always do stupid things and they always hv economic setbacks

[singlon]

if u think just banking think again


remember on Money and currency difference
impure goldbars no problem just a blowtorch
Money 999.9Puro

[singlon]

at the highest among thieves and whales

[singlon]

remember after HaarpTurkiye after HaarpShip spotted in Turkey water prior
Putin Haarp-ed Western bringing Wangi to have a cofi-talk face to face.
Isreal and Switzerland are within Putin sight
Thieves and whales are desperate.

[singlon]

Turkish water got HaarpShip is not something new
another was used to bring MH370 down

[singlon]

[Sticw]

What moral hazard?? Since the time I went to business school, my chers already said the SOP for banks is anyhow Cheong for the money, govt will step in to prevent the too big to fall. Those banks that really collapsed and died is intentional one...

[singlon]

[singlon]

Kali is being preserved

[ArielCasper]

China govt has major stakes in the big banks.
They are more or less nationalised and support govt policy.
If they get jnto trouble it could be because govt ask them to lend more to property developers or state enterprises etc.
So bailout is jntegrated to its operations through the govt bailout Bank like Huarong.

Became they operation under so much control from govt bailout is a non issue....and I did not see problem with this.

The problem is the CCP also bailout ship builders,  constriction companies that are state owned these cost tax payers alot of money and penalise the competitive players. 
Such bailouts will hinder China's economic progress as they support inefficient players.

If CCP govt ask the bank to loan to unprofitable biz, then it is only right for govt to bail them out. 

But now US bank didn't do anything for the govt, and now govt is bailing them out.

[Niubee]

China govt has major stakes in the big banks.
They are more or less nationalised and support govt policy.
If they get jnto trouble it could be because govt ask them to lend more to property developers or state enterprises etc.
So bailout is jntegrated to its operations through the govt bailout Bank like Huarong.

Became they operation under so much control from govt bailout is a non issue....and I did not see problem with this.

The problem is the CCP also bailout ship builders,  constriction companies that are state owned these cost tax payers alot of money and penalise the competitive players. 
Such bailouts will hinder China's economic progress as they support inefficient players.

Stop barking g for yr Yank daddy

[Niubee]

Look out for Credit Suisse, the next failing bank.