The reality is it was shitcoins and their collapse that started these dominos falling at Silvergate. That bitcoin liquidity could now be negatively affected is legit reasons for bitcoiners to be mad at shitcoins.
Maybe not you. But a lot of people are trying to turn this is to a political cudgel, and many in so doing, are just making shit up without any regards to the facts.
I think I'm done for the day arguing with anarcho-capitalists and extreme libertarians who are primarily concerned fitting these events into a political narrative, rather than adjudicating them on the merits.
It's weird to call it a bailout, when the regulators literally walked through the front doors and put these institutions into receivership. Acting like it's outrageous that the government would protect depositors, when anybody who isn't an anarcho-capitalist or extreme libertarian is, has obviously been sleeping through the whole part where, yes, we have regulatory bodies with the legal mandate and authority, authorized by Congress, to protect depositors in events exactly like this.
These were smaller, regional banks ...
They had to raise rates. If they hadn't, we'd have like 20%+ inflation right now.
No
It seems they're not trying to help the institutions at all, but the depositors?
Yes. Regulated markets are by definition "manipulated" by regulators. The sky is also blue.
It’s not 0%.
It’s overnight swap rate + 10bps.
https://www.federalreserve.gov/newsevents/pressreleases/files/monetary20230312a1.pdf
Wow. Stop narrative-violating with fact, Stu. j/k
Sorry. That wasn't directed at you. I was agreeing with you and directing my comment at others who are ... making shit up.
Yeah. I mean, there's plenty of reasons to be mad at how our financial system works, and how it unfairly benefits certain people to the detriment of others, without having to make shit up to serve a narrative.
The equity holders are fucked. As they should be.
That's where I think you're wrong. The equity holders are getting wiped out and taking all the losses.
I mean, they're taking steps to make sure depositors are whole. But the underlying point is there's enough assets to make depositors whole to begin win. They're not doing TARP.