Chet Collins

What Gets Lost When You Rescue Markets - WSJ

The attempt to eradicate failure from the financial system, of course, is part of modern society’s broader push to make life itself riskless and idiot-proof, with indestructible baby strollers, child-resistant drug packaging, almost self-driving cars and shoe removal at airport security.

Remarks by President Biden on Maintaining a Resilient Banking System and Protecting our Historic Economic Recovery - The White House

Third, investors in the banks will not be protected.  They knowingly took a risk and when the risk didn’t pay off, investors lose their money.  That’s how capitalism works.

It’s amusing how the administration loves to trash investors as if they’re evil fat cats.

Silicon Valley Financial Group and Signature Bank were both part of the S&P 500. So if you have an S&P 500 index fund/etf, a total market index fund, or target date retirement funds, you got wiped out.

This is the wisdom of diversification, but it’s so odd that the President is flippant about these losses when most of the shareholders are just normal teachers, firefighters, and engineers investing in their 401k.

Even more perplexing is that all of the uninsured depositors who were saved are the real fat cats of finance, Venture Capital.

SVB, Signature Bank Depositors to Get All Their Money as Fed Moves to Stem Crisis - WSJ

The government’s bank-deposit insurance fund will cover all deposits at the two banks, rather than the standard $250,000. Federal regulators said any losses to the government’s fund would be recovered in a special assessment on banks and that the U.S. taxpayers wouldn’t bear any losses.

“Special assessment on banks” is code for a one-time additional charge to all FDIC insured banks. In other words, all US banks will kick in to cover the uninsured depositors.

Banks will then turn around and pass this mandated cost-of-doing-business on to their customers in the form of higher interest rates, higher fees, and lower deposit rates.

Genius! We must all band together and save the start-ups who knew they were uninsured, but bravely carried on into the great unknown.

Investor Relieved He Pulled Money Out Of Crypto And Put It In The Bank For Safekeeping - Babylon Bee

“Really dodged a bullet there,” said Mr. Sandlin. “Cryptocurrency was getting too risky. You never know when one of these currencies will just suddenly go under.”

Ukraine Asks Merrick Garland To Leave As They Already Have Enough Corrupt Government Officials - Babylon Bee

Sources say the Attorney General stammered in response, citing his lengthy rap sheet which included sending the FBI after parents who protest at school board meetings, sending militarized police units to pro-life protestors’ homes, and investigating “radical Catholics.”

Biden’s ESG Veto Is Revealing - WSJ Opinion

The rule would drive more savings into ESG funds that typically charge higher fees by letting retirement sponsors offer them as default options in 401(k) plans. Workers can opt out of default plans but usually don’t. Why isn’t Mr. Biden lambasting ESG funds for charging “junk fees”?

To Catch Up On Today’s News, Man Just Reads 2-Year-Old Posts On Conspiracy Blog - Babylon Bee

“When I did some research, I realized all the conspiracy theorists were exactly two years ahead of the media in reporting the facts,” said Rorch while pulling up IlluminatiWatch.com and searching old posts for current updates on politics, culture, and international affairs.