SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 387.98+1.3%Nov 28 4:00 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: TobagoJack who wrote (197477)3/19/2023 8:20:35 PM
From: sense  Read Replies (2) of 218083
 
The "paper" price... when there are >100x more paper than can be linkages to "real"... provides a "real" but ignored view of scope of change that may occur... "inevitably"... but predictable as validly as date certain when "all banks fail"...

Noted last week... similar to 2008... Then, when fraud in trading MBS meant can't trust counter-parties...the system froze up... and QE got invented to facilitate ["force"] liquidity back into the market... first by making the insurers of fraudulent MBS "whole"... as would not work without that.

It's one of my "woulda, coulda, shoulda" stories... as I correctly pegged that trade as "probably necessary" or wheels will not stick on... The insurer had been "big market" stock... imploded... traded down to $0.0010 to $0.0025... and made my trigger finger itchy... but, I didn't take the shot... A million shares easily available... $1000 or $2500 crap shoot... that with QE / wheels back on... raced back up over $100... and would be worth a bit over $100 million a few weeks later.

And, I think... that's why no more "let them trade"... as guys like me might "figure it out" and take their toys...

Instead, now, they shut them down (bullet to back of head after close) then "sell them" at indeterminate price outside public view... as transfers of wealth from one bank owner to another... but leaving nothing for existing owners... and no way to play it... when there is probably still serious value on the hoof in things like SVB... if they did BK properly. That "we can't have that"... likely tells you what need to know about "stability" today ?

Over the last few days, though... saw "the same" in relation to Credit Suisse... as "the obvious" suddenly meant no counter party was willing to trade with them sans "cash ponied on the barrel head". That took them less than a day to "resolve" with "forced solutions"... that appear to depend on "forced aggregation" working to "dilute" the problems into "manageable" risks... as Credit Suisse "not saved" likely means UBS "down the tubes" too ? So Swiss National Bank (SNBN) ponies up $54 million in "free money"...


Credit Suisse stock jumps on $54 billion loan from Swiss National Bank

and then, UBS "buys them"... maybe... says article from this morning...

UBS Nears Deal to Take Over Credit Suisse

There. Problem solved... Credit Suisse 8.556 Billion market cap... 4 times that a year ago... and 8 times that 5 years ago ? "Asleep at the switch"... and finally missed a rail switch... heading it down a blind end. ?

What deals might get done ? What's in it for existing holders ?

And, why should seeing that happen... instill "confidence" ?

Suggests "trading in shares is a scam" that they allow to go on... hoping to beat you on the trades... cheating allowed to ensure that... when they have no intention of actually allowing the owners of companies... or, perhaps, gold/silver... to own them ?

Am I "reassured" by government "takings" of private property to forcibly "fix it" ?

Not exactly...

My conundrum... is parsing when everyone else will figure that out...

Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext