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Thanks Razors Edge once again for your daily bulletins,
Enjoy your day and thanks.
Major European stocks recorded little change ahead of Tuesday's session following a major sell-off in the banking sector yesterday prompted by the collapse of Silicon Valley Bank. On the data front, markets awaited the latest unemployment data from the United Kingdom and inflation data from the United States.
The FTSE 100 and the Euro Stoxx 50 traded flat at 7:13 am CET. At the same time, the DAX rose by 0.13% while the CAC 40 declined by 0.11%.
The euro lost 0.24% against the dollar to sell for 1.07049 at 7:20 am CET, while the pound fell 0.13% to $1.21679, after rebounding to mid-February levels during the previous session.
Baha Breaking News (BBN) / ND
Thanks
It does get a bit hard to stomach the BS that gets served up to us every day, as financial wisdom by financial gurus. The world finance is dominated by non-physical trades done by computers now mostly, which bring no benefit to society as a whole, no benefit to anyone but the owners of the "traders". Bull$hit trades is a term that springs to mind. It s a little like a hybrid of what David Graeber called, Bul$hit jobs. [A bull$hit job or pseudowork is meaningless or unnecessary wage labour which the worker is obliged to pretend to have a purpose.]
We are well past the post on meaningless financial trades of "hybrids and derivative nothings" to stabilise "the system and better manage risk", LOL. It is the biggest lot of *******s one can imagine, and people are given Nobel Prizes for this rubbish. The last bit of "Nobel madness" I read about was the realisation that a bank run occurs due to customer panic rather than actual insolvency on the part of the bank. Give me a break, what world do the economists live on?
I am off to my hut at the end of my world to nowhere to enjoy the sunrise.
best to all
The Gnome.
Well said Goldnome. The prudent paying for and subsidising the reckless. Time such imprudent practices by directors and CEO's of banks was made a criminal offence with jail time, similar as was done with corporate manslaughter. I understand the need to stop a meltdown of the banking system but without some form of detterent reckless behavior will continue. Also intead of being made whole customers should not recover the full amount of their funds. Those responsible and those culpable borh banks and customers should not walk away Scot free.
I once held HSBC, if I still held now then I would be very concerned by this takeover of the arm of a failed US bank specialising in lending to companies overstretching themselves in the hope that things will come good someday!
Royal Bank of Scotland was not alone in being shabby, reckless, greedy, dysfunctional and corrupt during the build-up to the crisis. Nor in its aftermath.
https://sceptical.scot/2018/10/guilty-men-rbs-shredded-part-three/
I also once held both Lloyds & RBS and neither bank has ever recovered, this is a bad move instigated by the inner circle of government that will also will likely end up costing HSBC share holders dearly!
https://www.thisismoney.co.uk/money/markets/article-6169589/Fred-Shred-line-17m-pension.html
WELL, WELLL, WELL, HERE WE GO AGAIN. GREED, STUPIDITY, THE MADNESS OF CROWDS, AND PROTECTION FOR THE RICH...AND SO ON AND SO FORTH
With SVB there was the standard “maturity mismatch” in which SVB took short-term deposits and lent those out at longer maturities. Standard fare. THE AUTHORITIES ARE STILL ON THE DISOCVERY ROAD ABOUT THIS CAPER..??!!!
What distinguished SVB was its distinct lack of expertise in finding profitable lending opportunities (GRIEF?) – at least on a risk-adjusted basis. It was very good at cultivating relationships in the Valley (lots of likes, but no margins?)
There was herd behaviour in depositing at SVB – that it was some kind of status symbol to be banked by SVB rather a fusty New York bank...??? HERE COMETH THE HERD AGAIN, AND WE DO WONDER WHY DEMOCRACY DOESNT WORK TOO WELL?!
As Jamie Beaton of Crimson Education told this paper ”Luckily, we saw a news article early on Friday ... we read between the lines and ripped out all our funds 30 minutes before the wires started getting blocked.” GO JAMIE!
And when large, sophisticated customers appear to be acting irrationally and we know it’s going to be hard to let them bear the consequences of their actions, intervention has to happen before there’s a collapse...AND THE SOPHISTICATED INVESTORS IN THE SOPHISTICATED "SYSTEM"ALL SHINE ON?! WHY DONT WE CALL IT AS IT IS. THE SOPHISTICATED SYSTEM IS A FLAKEY SHAM, POORLY ENGINEERED BY PEOPLE WHO GET PAID A FORTUNE, THE SOPHISTICATED INVESTORS ARE ANYTHING BUT, AND ARE EQUALLY CLUELESS.
In the wash up it looks like depositors will be made whole (WHY!!!) in order to protect contagion in the broader financial system (WHICH IS AN UTTER RORTING AND SNORTING MACHINE, DESIGNED TO PROTECT THE RICH AND B@GGER THE POOR) . But depositors with big balances who get their money back should count themselves very lucky (PAMPERED IS AOTHER WORD, AND I WILL RESTRAIN MY VOCABULARY, AS WE ARE PLITE PERSONS HERE?). This was an example of what not to do, AND ONCE AGAIN THEY GOT AWAY WITH GROSS STUPIDITY WITH A DOSE OF GREED!
Well yes it is another bank distaster, in the land of the free and greedy. Next time we will be a whole lot smarter, and there will be less ...waffle, waffle,..nobel prize..more waffle
In my corporate days I would be handing out quite a few PINK slips, for ACTS OF STUPIDTY ABOVE AND BEYOND
GO GOLD, AND CEY!
best
the gnome
The prices of precious metals continued to grow on Monday, with gold and silver going up over 2% and 6%, respectively. The mayhem in the financial sector continued to rattle the markets, with worries over the future of the global economy mounting. Investors seemingly turned to traditional safe havens as the value of the United States dollar depreciated.
Gold surged 2.25%, to go for $1,909.41 per ounce at 10:48 am ET, reaching its highest value since early February. Silver skyrocketed 6.06%, selling at $21.75 per ounce a minute later and hitting an almost 3-week high. Platinum jumped 3.47% to $996.96 per ounce at 10:49 am ET. Palladium soared 4.28%, to go for $1,439.56 per ounce concurrently.
Baha Breaking News (BBN) / AY
The Federal Reserve, Federal Deposit Insurance Corporation (FDIC) and U.S. Treasury announced the New York-based bank’s closure under a “systemic risk exception” Sunday (March 12) evening, two days after the collapse of Silicon Valley Bank.
According to the statement, Signature Bank was closed Sunday by the New York Department of Financial Services (NYDFS), which turned over control to the FDIC.
“All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer,” the statement said.
https://www.pymnts.com/news/banking/2023/signature-bank-shut-down-and-placed-under-fdic-control/
NEW YORK (AP) — President Joe Biden on Monday told Americans the nation’s financial systems were safe, seeking to project calm following the swift and stunning collapse of two banks that prompted fears of a broader upheaval.
“Your deposits will be there when you need them,” he said.
U.S. regulators closed the Silicon Valley Bank on Friday after it experienced a traditional bank run, where depositors rushed to withdraw their funds all at once. It is the second largest bank failure in U.S. history, behind only the 2008 failure of Washington Mutual. But the financial bloodletting was swift; New York-based Signature Bank also failed.
The president, speaking from the White House shortly before a trip to the West Coast, said he’d seek to hold those responsible accountable, and pressed for better oversight and regulation of larger banks. And he promised no losses would be borne by taxpayers.
https://apnews.com/article/silicon-valley-bank-uk-bailout-hsbc-sale-4d2da0e9c6f39c0fd8faf321a2b295cf
Never mind Mr Bond,it was still good of you to flag up the news!
Like your I. Q
US time change- summer :-)
The only way is UP!
OH and Gold 1902$. now.
Sotty earlier I gave wrong time for Wall St opening ,that was based on European time.
Signture bank on Sunday stopped trading and all exectives removed.
So now more safe haven seekers.
Signature Bank next casualty, Reuters .
Now the FED is up against it, but a few hundred million is small potatoes to them, ehen you consider their military budget.
No, more likely to do the opposite
Sounds like will not at least this time to avoid the same to other banks, but what do you thing?
Dan,
GLTA
Interesting article Mr T and again demonstrates the need to take control of all your finances yourself- and by this I don't mean do all the trading, but I do mean fully understand what the people you use are doing- I've mentioned this soooo many times over the years on this board. To repeat, my main pension is global equity based, I took this decision ~10years ago- when I looked back in history, the evidence is clear- the doomsayers success is minimal compared to the optimists and doomsayers miles worse off over the vast majority time frames. What I object to is the terminology used by some pension analysts and companies and financial advisors (the poor ones that it is)- eg "we'll go safer for you and reduce the risk"- used to mean bonds, lower risk, lower return, less likely losses0 I had one advisor who I stopped using who had my portfolio split into medium risk and had some bonds, some cash as well as equity - heck cash loses all the time- and the pension was only balanced annually so a loser there straight away. It's interesting to note that the a complete opposite article could have been written to this Guardian one in Jun2020 when people looked at their pension and a lot had lost ~30% due to the COVID initial whack!!! (this pension guy moaning would have pleased as punch them lol )So there you have it- just understand what you have - IT'S YOUR RISK- YOU'RE MONEY, and up to you on WHERE'S it allocated- I've no time for whingers who blame companies for their pensions going lower, when they should spend time to understand their finances themselves. Rant over
Pensions: why do those retiring face ‘massive’ losses despite FTSE highs?
Laith Khalaf of the investment firm AJ Bell – who a year ago warned about the risks of pension savers sleepwalking into a disaster – says: “Unfortunately, bonds were inflated into a big bubble by years of low interest rates and QE, which went pop when inflation returned and interest rates climbed.”
https://www.theguardian.com/money/2023/mar/11/pensions-retiring-losses-ftse-aviva-value
Idiot
The only way is UP Now!
Follow the futures markets for the best indicator. Needs FTSE to tick up to help here, then we'll move in the right direction, we are, after all, a stock and not gold itself...
Canadian mining giant Barrick Gold is responsible for poisoning an Argentinian community’s water supply five times in the last seven years.!
https://actions.sumofus.org/a/shutdown-veladero-mine?sp_ref=796250259.99.225704.e.0.2&referring_akid=119723.3436857.BG3o6H&referring_source=fwd&source=mlt
As I write $1887 or 1562 pounds.
Interesting tosee what will happen at 2-30 pm when Wall St opens ?
It didn’t tumble back down to 1800 as it didn’t get to his 1870 before the dip he claimed would happen, it didn’t even get to 1850! So he was completely miles off on all counts- so just another “click bait” person that makes money out of predictions - there are enough new people out there as first timers for him to be right at their time of reading then when they stay with him, he of course will be wrong- just like those that are initially wrong are eventually right at some point- as i said gold can only up or down so it’s dead easy to be right some of the time, harder to be right on explicit values though- putting any faith is totally bonkers