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Sugabearcrisp
Not Your Average Bear



Registered: 10/14/19
Posts: 12,047
Loc: maybe I had too much, too fast
Last seen: 15 hours, 57 minutes
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bank collapses how are you reacting?
#28228893 - 03/14/23 05:57 AM (10 months, 10 days ago) |
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So ftx, now svb
I just moved $$$$ out of ally bank to a more conservative bank, lower interest rate than ally but after reviewing ally I felt it was warranted.
First ally is heavy into the auto loan space and signs are growing of a coming autoloan crash as people find themselves underwater on 5, 6 and 7 year vehicle loans.
Second ally is full on into this ESG shit like svb which tells me they're more worried about that then solvency.
How about you?
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geokills
∙∙∙∙☼ º¿° ☼∙∙∙∙


Registered: 05/08/01
Posts: 23,417
Loc: city of angels
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Re: bank collapses how are you reacting? [Re: Sugabearcrisp]
#28228977 - 03/14/23 07:57 AM (10 months, 10 days ago) |
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The only reacting I am doing, is to the price action in equities. I've been leaning heavy cash for a while, all the more so since we broke the S&P's intermediate term trendline on March 1st. I am taking opportunistic trades when I see them, which have generally been performing well, although I am keeping position size small due to the heightened risk environment. Moments like these are mostly for watching, learning, and honing discipline.
I don't feel any need to move money out of any of my bank accounts, including an account that I use for business purposes at First Republic Bank, which is one of the banks under significant stress currently. The gov't backstop should theoretically halt a continued run on the banks, as they have essentially expanded insurance to all deposits regardless of size. Even so, I do not presently carry over $250K in any account outside of my own self-sovereign crypto exposure, and because the Feds were able to restore access to customer deposits inside of a week for both of the bank failures last week, I don't see a practical benefit stemming from deposit reallocation.
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-------------------- ┼ ··∙ long live the shroomery ∙·· ┼ ...╬π╥ ╥π╬...
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oursoulsinmotion
🐵🙈🙉🙊


Registered: 10/04/21
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Re: bank collapses how are you reacting? [Re: Sugabearcrisp]
#28229017 - 03/14/23 08:29 AM (10 months, 10 days ago) |
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I wonder how this is affecting Credit unions??Arent they 1 & the same?
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Sugabearcrisp
Not Your Average Bear



Registered: 10/14/19
Posts: 12,047
Loc: maybe I had too much, too fast
Last seen: 15 hours, 57 minutes
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Re: bank collapses how are you reacting? [Re: geokills]
#28229094 - 03/14/23 09:20 AM (10 months, 10 days ago) |
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Good points geo.
I know the fdic insures the 250k, but I can't be sitting around waiting for the fdic claim process as I need the cash for a construction project.
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Asante
Mage


Registered: 02/06/02
Posts: 86,795
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Re: bank collapses how are you reacting? [Re: Sugabearcrisp]
#28229427 - 03/14/23 01:35 PM (10 months, 9 days ago) |
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not to be a dick, but your money shouldnt have been in an unstable bank to begin with. At some point there will be a larger cascade, which may part you from your money for a while.
The action i took was a call option on the commotion on the stock market settling.
-------------------- Omnicyclion.org higher knowledge starts here
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oursoulsinmotion
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Re: bank collapses how are you reacting? [Re: Asante]
#28229550 - 03/14/23 03:00 PM (10 months, 9 days ago) |
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Quote:
Asante said: not to be a dick, but your money shouldnt have been in an unstable bank to begin with. At some point there will be a larger cascade, which may part you from your money for a while.
The action i took was a call option on the commotion on the stock market settling.
What are your thoughts on banks too big to fail?
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Sugabearcrisp
Not Your Average Bear



Registered: 10/14/19
Posts: 12,047
Loc: maybe I had too much, too fast
Last seen: 15 hours, 57 minutes
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Quote:
Asante said: not to be a dick, but your money shouldnt have been in an unstable bank to begin with. At some point there will be a larger cascade, which may part you from your money for a while.
So which bank would be safe? Any financial institution has some level of risk, it would be darn near impossible for a depositor to fully vet an institutions balance sheet.
As geo pointed out us banks that are part of the FDIC carry $250k coverage per each deposit account, so essentially an average person is covered, and most individual with more cash then that would have it split over multiple accounts so they are covered.
If it was up to me I would leave the depositors at svb who were above that to attempt to recover via other methods outside the FDIC, such as restructuring that might have given them some portion of the money back.
Anyways to your question if it was specifically to me, my cash was at ally because they offered a very good interest rate and were easier to establish an account in the name of our trust than other competitive banks. I was essentially accepting zero risk because it was less than $250k and therefore covered by FDIC. The news around svb caused me to reevaluate what impact suddenly having to go through FDIC claim to get my money out and also look more closely at how ally was structured (heavy autoloan as a subsidiary of general motors finance) and where their corporate strategy was focused.
In my case that meant moving the money to a lower interest account with local branches and a focus on more conservative balance sheet.
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oursoulsinmotion
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Registered: 10/04/21
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Re: bank collapses how are you reacting? [Re: Sugabearcrisp]
#28229892 - 03/14/23 06:54 PM (10 months, 9 days ago) |
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The fed reserve just needs to print more moooonnnneeeyyyyy
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geokills
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Registered: 05/08/01
Posts: 23,417
Loc: city of angels
Last seen: 11 minutes, 56 seconds
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And they will. The old adage rings true, "markets can stay irrational longer than you can stay solvent." This is just another rotation in the long cycle of overshooting on flawed policy designed to stimulate rapid economic growth with potentially catastrophic future costs. Will our modern financial instruments be destined to collapse? Probably, if history is any guide. But the question of "when?" is an impossible one to answer.
The only thing you should do as a result of recent events, is the same thing a person should have been doing all along. Namely:
- Make sure you have a secured yourself and your family a nice place to live.
- Free yourself of secured debt obligations as rapidly as you can.
- Diversify your asset base and do not sit on large amounts of currency.
- Embrace income bearing investments (e.g yield bearing/dividends and/or real estate rentals).
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-------------------- ┼ ··∙ long live the shroomery ∙·· ┼ ...╬π╥ ╥π╬...
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Ahab McBathsalts
OTD Windmill Administrator




Registered: 11/25/02
Posts: 35,107
Loc: Wind Turbine, AB
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Re: bank collapses how are you reacting? [Re: geokills]
#28231104 - 03/15/23 07:41 PM (10 months, 8 days ago) |
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The only consistent option I ever make money on is long dated GLD calls. I have timed those out right 3 or 4 times in the last decade. It's never agressive enough to offset the crisis, and it's probably not the time to do anything with it now, but holding that 5-10% in gold always smooths out returns. GLD was looking super juicy with a nice cup and handle like a month or two ago, and low behold it worked out again.
Gold moves slow and it's chart doesn't lie.
-------------------- "Nobody exists on purpose. Nobody belongs anywhere. Everybody's going to die."
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badchad
Mad Scientist

Registered: 03/02/05
Posts: 13,372
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Re: bank collapses how are you reacting? [Re: Sugabearcrisp]
#28238096 - 03/20/23 01:32 PM (10 months, 3 days ago) |
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I'm sleeping soundly knowing I'm FDIC insured.
-------------------- ...the whole experience is (and is as) a profound piece of knowledge. It is an indellible experience; it is forever known. I have known myself in a way I doubt I would have ever occurred except as it did. Smith, P. Bull. Menninger Clinic (1959) 23:20-27; p. 27. ...most subjects find the experience valuable, some find it frightening, and many say that is it uniquely lovely. Osmond, H. Annals, NY Acad Science (1957) 66:418-434; p.436
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Sourcer
Stranger
Registered: 03/07/23
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Last seen: 8 months, 7 days
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Re: bank collapses how are you reacting? [Re: badchad]
#28244720 - 03/24/23 01:29 PM (9 months, 30 days ago) |
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If you have less than 250k you really don't need to worry about it in the US. You are FDIC insured and its backed by unlimited money printing. That being said this mentality is the basis for run away inflation. Hard assets are the safest thing you could be in. Reality is that your purchasing power is being eroded by the day and even parking your money in some of the big banks, that offer 3-4% interest on your money doesn't even match the rate of inflation. Doesn't really feel like there is a good place to put your money. Buy a home, crypto, metals, guns, seeds. After that just gotta keep on trucking and hope for the best. Tough times ahead for the poors. Government really fighting crypto big time right now because they know their system is bogus and want to usher in CBDC after they shit can the USD. BRICS nations will create their own monetary system that will replace the USD as the global reserve currency and USD hits hyper inflation. This is all speculation. Goodluck
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Atomsplit


Registered: 01/16/21
Posts: 1,505
Loc: SAB
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Re: bank collapses how are you reacting? [Re: Sourcer] 1
#28244745 - 03/24/23 01:40 PM (9 months, 30 days ago) |
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This is a little off tangent.
One thing that's often overlooked is investing in our health & well being.
Something all of us are capable of.
Oh I like my credit union.
Be well everyone!
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Edited by Atomsplit (04/17/23 02:47 PM)
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Enkidu
"No-Such-Person"


Registered: 07/09/16
Posts: 10,698
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Re: bank collapses how are you reacting? [Re: Atomsplit]
#28248044 - 03/26/23 05:36 PM (9 months, 28 days ago) |
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I was increasing exposure to gold but now waiting to see how it plays out at this 2k level
I'd likely be putting money into btc and gold instead of holding in a bank, but besides that business as usual
-------------------- Within You , Without You
      
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skOsH
Functionally dysfunctional



Registered: 07/03/19
Posts: 1,372
Loc: the PNW
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Re: bank collapses how are you reacting? [Re: Enkidu]
#28252553 - 03/29/23 07:33 AM (9 months, 26 days ago) |
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I don't have enough money to feel like I would be losing anything
Been down on my luck my entire life, so I might as well quit
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