An actual surprise

That happens to us all and to me about an hour ago when I was about to go imitate a sawmill when a tweet reached me. The Tweet came from Democratic Jeff Jackson, United States Representative since 2023 for North Carolina. And the tweet was worth it, I would call it the best political video I saw in years. 

It gives a clear concise and brief overlook of the Silicon Valley Bank situation and the actions that are in play. Now, I do have questions but not on the video, everyone should see that one. The video can also be seen on YouTube (at https://www.youtube.com/watch?v=VFo-AQ5aQm0), so watch this. 

This was about soothing and assuring people and that is a good thing. It was a one of the best surprises I have seen in years. Then we get to the Guardian (at https://www.theguardian.com/us-news/2023/mar/14/first-thing-global-markets-gripped-silicon-valley-bank-collapse) there we see
“The bank’s parent company, SVB Financial Group, and two top executives have been sued by shareholders over the collapse of SVB. The bank’s shareholders accuse the group chief executive, Greg Becker, and the chief financial officer, Daniel Beck, of concealing how rising interest rates would leave its SVB unit “particularly susceptible” to a bank run”, for this we have a few items and it is not the Simpson illustration even as that was a hilarious one (at https://www.youtube.com/watch?v=Ovfap2VtpHM) and even to some degree on point even as Bart Simpson never went to the Silicon Valley Bank, the run shows that something set it off, in the case as I saw it, the bank trying to raise 2 billion dollars. Yet I still have questions. You see, I comprehend what happened, I merely do not understand it. I never understood greed (as I personally saw it). I raised the issue (at https://lawlordtobe.com/2023/03/12/i-honestly-dont-get-it/) with ‘I honestly don’t get it’, there I made mention of the European phrase CET1 (Common Equity Test), it was an essential step into Basel III. When the US (under non-leadership of the town clown Donald Trump) lifted the Dodd-Frank act which stopped banks take unnecessary risks, without that act these dangers are back and now it comes to the question as I also gave you in the previous article “mainly US government bonds” that is the setting of the question which is:

How many US government bonds did EVERY US bank buy since the Dodd-Frank act was lifted and I reckon that the SVB bought too many, but they are nowhere near the only ones and as such the US needs to look at these stages and what is required to set a decent level of footholds in place so that the US banks can pass some level of Common Equity Test. Now, there is every chance that this list of banks are limited and that is OK, but remember that a run on two banks nearly started a new financial crises, which would close to immediately sink their economy. And make no mistake, I was a Republican once and I cannot stand this level of stupidity, so the Republicans get to wear that cloak of shame, all thanks to the Trump disaster creation team. He took such great pride of dwindling down Dodd-Frank, now let him face the fallout too.

The action was great, the question remains, but that is for another day, for now this administration needs to avert a new financial crises, and they seem to be doing just this. The end will not be known until early next week I reckon, but that is a pure speculative timeline.

Have a great day!