in this case, you might actually be right, if we get that black swan event and SPX FALLS TO 3000, that’s what we need. Weak hands gone. But prolly wait 2 days for things to settle. I’m guessing though that this isn’t a black swan event. But WTF do I know. I hope it is. Sitting with a crapload of cash
not yet, even if FDIC bails out SVB Monday, there are few other banks in the same maturity mismatch technical situation, unless FED can allow all of them to repo the treasury at no discount, and next Tuesday is the rate hike. will wait until 3700-3800 ish to buy.
I keep hearing and reading that they are prepping a statement to be released before the US open tomorrow. The assets are there, it was just a liquidity issue. The FDIC is looking at guaranteeing a certain percentage of uninsured deposits will be returned over time and making a decent amount available short term. They are working this weekend to get a good number for both based on the value of the holdings.
Liquidity doesn’t matter at this moment, if you have cash in svb, take it out on Monday. What you need to consider is that at least half of your deposits will not be available anytime soon, that’s the risk. Unless the Feb can repo long dated treasuries at zero discount.
https://www.aol.com/yellen-says-no-federal-bailout-144155847.html Does this mean they will honor over $250k deposits? I read Muddy Waters replies to Fearful Bill Ackman. “Heads I win, tails you lose Capitalism”. Carson Block.