This article is a lot of psychology, but it's important to realize that SVP really was insolvent. If it was just a Twitter mob demanding its money, the Fed could backstop SVP from the overnight funding window or even with a direct loan. They did not do that for a reason: SVP has massively screwed up, taking demand deposits and putting th…
This article is a lot of psychology, but it's important to realize that SVP really was insolvent. If it was just a Twitter mob demanding its money, the Fed could backstop SVP from the overnight funding window or even with a direct loan. They did not do that for a reason: SVP has massively screwed up, taking demand deposits and putting them into long-term T-bills, which had tanked in value since the Fed had raised interest rates. The bank run wasn't caused by Twitter. The bank run was caused by legitimate concerns over the bank's balance sheet.
Perhaps related, SVP's Risk Management Officer was apparently obsessed with viewing banking through a woke lens. It appears Jay Ersapah was more concerned with gay pride than with bank risk, which is unfortunate since her job was managing bank risk. This is literally a case of "go woke, go broke". Or more accurately, you go woke, and everyone else goes broke. Since Jay Ersapah is a member of a sacred victim group (a self-identified queer person of color), there will be no consequences for her.
Lot of fp articles are straight garbage. It’s a nice idea and the founder is good at certain aspects but so far the execution - the actual content that is getting “air time” - is mediocre.
Anybody knew that rising interest rates meant either selling zirp bonds for a loss or rolling into hedged environment was required, that’s why banks all over the country did just that . Anybody except the op. and barney frank of course gets bailed out of his crypto catastrophe
The comments are often terrific though. It’s not yahoo before they banned speech, when everybody abandoned the articles altogether for the conversation, but it’s certainly more important for the forum and round robin exchange of ideas
This article is a lot of psychology, but it's important to realize that SVP really was insolvent. If it was just a Twitter mob demanding its money, the Fed could backstop SVP from the overnight funding window or even with a direct loan. They did not do that for a reason: SVP has massively screwed up, taking demand deposits and putting them into long-term T-bills, which had tanked in value since the Fed had raised interest rates. The bank run wasn't caused by Twitter. The bank run was caused by legitimate concerns over the bank's balance sheet.
Perhaps related, SVP's Risk Management Officer was apparently obsessed with viewing banking through a woke lens. It appears Jay Ersapah was more concerned with gay pride than with bank risk, which is unfortunate since her job was managing bank risk. This is literally a case of "go woke, go broke". Or more accurately, you go woke, and everyone else goes broke. Since Jay Ersapah is a member of a sacred victim group (a self-identified queer person of color), there will be no consequences for her.
Lot of fp articles are straight garbage. It’s a nice idea and the founder is good at certain aspects but so far the execution - the actual content that is getting “air time” - is mediocre.
Anybody knew that rising interest rates meant either selling zirp bonds for a loss or rolling into hedged environment was required, that’s why banks all over the country did just that . Anybody except the op. and barney frank of course gets bailed out of his crypto catastrophe
The comments are often terrific though. It’s not yahoo before they banned speech, when everybody abandoned the articles altogether for the conversation, but it’s certainly more important for the forum and round robin exchange of ideas
But some of the comments are pure gold. And reflect the pulse of the people. I like that.
Yes they are. I wish em well