Well despite all the doomsday comments…
Yellen said not helping Frc, that was days ago, before the share price plunged from 12 to 1 plus dollars. Afterall, she holds a political position, she can’t be seen using taxpayer money to bail out every bank immediately at the first signs of crisis.
But in order to prevent fresh rounds of bank runs and causing the dominio fall of cards, Biden, Yellen, Powell and FDIC together with the big banks will save FRC. There will be much greater pain if they allow FRC to fail, other regional banks would follow. Eventually, the big banks like JP Morgan also can’t escape unscathed.
High inflation, high interest rate and a banking crisis…That’s a formula of a disaster in the making. What the Biden administration, treasury, Fed and FDIC could do is to increase Fed balance sheets and provide temporary unlimited support until people regain confidence in the banking system…and rmb the next US president term elections is not too far away…if Biden wants a second term, he has to take drastic actions to prevent a banking crisis. Sign executive orders if he has to…Americans are tired of supporting the Ukraine war, dealing with high inflation and support rating for Biden is falling.
The selloffs are all triggered by unfounded rumours. If the rumours prove to be false, u can expect a major short squeeze perhaps on the GME level in the short term before falling back to penny…
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Pepperoni Pete : She is whack. . . .
JozeChia : It’s either a bail out or other banks buying in at dirt cheap prices
JozeChia : It has already failed it whether the FDIC wants to recognise it
THEWIZARD :
Wildndn : Reelection ? who do you blame this on ?
无谓风云 JozeChia: It went out of business