Great video man ❤ Lol I had the same issues yesterday of outdated info when editing so scrapped the video. News cycle is moving so quick. Got another out today though.
Yep, we all know they were made whole at the tax payers expense as always. Who cares tho when they have an unlimited budget of infinite debt I suppose. Good job usd/USA 👍 hope you guys are all enjoying the 30% loss of your income/savings dollar value since 2020. (I word it that way because the avg peasant can’t interpret inflation correctly).
Another gem has dropped from the InTheMoney Bros. Cant thankyou enough for ur unconditional service to us inspite of ur health obstacles. Explanation was so clear and SIMPLE yet high QUALITY. TY.
Dude, I just found your content and it is very helpful. I also just learn about your condition. I hope you are doing alright in your fight. DON'T STOP FIGHTING.
Honestly I’m glad you’re doing some more ads and sponsors. Theres still some good companies out there and imo you picking good ones. You and your channel deserve the money.
88% of the accounts at SVB were not covered by insurance. $42 billion was withdrawn in one day, compared to $16 billion over 10 days for the run on Washington Mutual in 2009. The speed of this, not just size, made history. It happened so fast, not much could stop or mitigate it. The side effects will continue to reverberate through the system.
I love the way you break complicated sh^t down so it makes sense, I've been trying to wrap head around this securities, bonds thing ......endless gratitude.
Say a month or so ago I thought to myself, “it looks like SVB is in trouble. I’ll buy some puts.” Then I get to today and the stock is completely frozen. In fact when I searched my brokerage account, it says the symbol SVB “does not exist.” (I just checked it. That’s the actual message I got.) Would my puts also be worthless? So if I buy puts, I want the stock to go way down, but not literally to zero?
Great explanation on the mark-to-market treasury values. I heard that SVB knew that they weren't required to do this as part of the filings, unless they sold.
I've been trying to wrap my head around why take the interest risk of purchasing 10 year treasury and MBS investments in the first place when you KNOW interest rates are at a historic low? Common sense tells you, these rates can't stay low forever. Who makes that decision at these banks? Why not make more short term investments that are not as high a risk with the extra cash that came in?
Adam, I've been off-and-on watching you for the last couple years and as much as I've learned from you about how these sorts of things work, I am sad to report that not even your vast and extensive knowledge on the T-Bills can't even break my wall of ignorance surrounding said treasuries... For whatever reason, I can't seem to wrap my head around it... God bless you and may He continue to carry you through your health journey...
There’s an Asian lady with a channel called diamond nestegg who covers boomer investing very in depth but in a quick/helpful way for ibonds, tbills etc along with best time to buy and other tips. Most her stuff is repetitive so not worth a sub, but her and inthemoney are the 2 financial channels I ever watch a vid from. Rest are clickbait garbage or dumbed down for stupid ppl.
Not sure of the accuracy, but ive been reading that alot of the higher ups took huge bonuses 3 weeks ago. along with selling off their own shares right before the bank run.
I don't know why I procrastinate on watching you guys videos for so long every time cuz they're all spot on and very enlightening. RIP Sillycon Valley Bank
This was a great explanation! I watched other videos but I find your explanation clicked with me best! :D I think the long term bonds would have been fine if they were able to hold those bonds to maturity (thus realizing no loss, and actually collecting the interest on those bonds), which obviously they weren't able to, but they thought they could. So I'm guessing it wasn't a play at the bond pricing, it was a play at the guaranteed interest payments long-term.
Wow. I can’t believe what you said “banks holding money is a liability to them.” Like WTF! Blows my mind that the very thing, American people think, banks do is a liability to them! 😮
Well explained. Another issue was a lot of those deposits could have been adjustable so they had to pay people higher and higher aprs that kept their money at Silicon and the other defaulted regional banks like signature. If this isn't a duration mismatch, I don't know what else is 😂
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around (these banks) will....deprive the people of all property until their children wake up homeless on the continent their fathers conquered.” ~ Thomas Jefferson
The same could be said if the government was in sole control of currency, and those are about the only two options, yet both private and federal can impact both inflation and deflation through direct and indirect policies. I believe that is a much better deal than either one or the other. It also has the added bonus of making sure the value of the dollar is the highest priority even if the leadership is entirely self interested because they are paid in the same currency they create, meaning when we lose, THEY lose as well.
Yet the government has brainwashed everyone into thinking that they're definitely the ones that will keep your money safe. They've destroyed about 90 percent of the value of the dollar, in 100 years, and forcibly confiscated gold from its citizens, while at the same time giving taxpayer money to bail out banks that have made horribly bad investments with their customers' money. Just because Thomas Jefferson, or Benjamin Franklin, or the freakin' Dalai Lama say something that can be put in wonderful and beautiful quotes, doesn't mean it's right. Btw, maybe you should think about why Jefferson, a person in government would say something like that. It's not because of some altruistic reason, maybe it's because the government wants to control the currency, for their own nefarious reasons, and by making a statement like that - you could instantly convince the average citizen that "government controlling money = good".
Wow! Great video. it is so simple even i understood it. Im very confused on their decision making processes. Why did they buy all those long term bonds.
Good video, although I do think that with bonds being below 4% for the last 12 years until 2022 is a big factor in why they invested in them. The writing should have been on the wall in 2022 when interest rates were less than 1%. I think this is just the start of the issues that inflation and corresponding interest rate hikes are causing.
@inthemoney heyyy man I hope all is well!! I was wondering if you had the time to cover some 0dte butterfly spreads...I know the 0dte's probably ain't your thing but I like the way you break things down. I would also love to get your take on em in general
Cosmo : In prison I learned that everything in this world, including money, operates not on reality... Martin Bishop : ...but the perception of reality. Cosmo : Posit: People think a bank might be financially shaky. Martin Bishop : Consequence: People start to withdraw their money. Cosmo : Result: Pretty soon it is financially shaky. Martin Bishop : Conclusion: You can make banks fail. Cosmo : No more Silicon Valley Bank Marty
Patrick Boyle's video also covers this, he points out that a reason they would have bought long dated treasuries is that as a US regulated bank (to an extent) they must keep a ratio of either cash or bonds, so they chose bonds (I think). Ie. they chose bonds over just holding straight cash, but they couldn't have invested that money into something else. Nevertheless, Patrick Boyle and you agree that interest rates were only going to go up, Patrick notes that they sold all their interest rate hedges in early 2022 (and their risk manager stepped down), and that this was all incredibly dumb by SVB
Hey brother glad you're making some videos and talking to people with a Very credible Track record It's gonna affect every bank that we got They're all the same
Two things - I thought it was the MBS securities they were holding that screwed them more than the treasuries - something like 60 billion mostly bought with low interest yields. Same concept as treasuries though. And FYI expressvp was bought by a Chinese company in 2021 and I wouldn’t touch it with a 10’ pole
I really like your content, I don’t understand how you have so many subs and don’t get very many views comparatively. Keep making videos they are all gems 💎
So say you have a 2 year call with over a .9 delta that's gone in your favor by 30% or so and you plan on rolling over into another 2 year LEAP one year from now; would you recommend hedging with a 1 year ATM put?
What was the logic behind a long term low-interest bond? That seems like a bad idea on its face, but I'm wondering if there's a counterintuitive upside?
Heyy, Hope you are doing well! I messed up myself really bad this new year eve. Tldr: ecstasy-speed made my sleep HORRIBLE!!! I saw your videos, and your suffering. And if you can do it, I can so it to! Hope you / brother doing well! Im not gonna give up!
@@haywood12 It's really sad to hear it man. I think I know what you are saying, it's miserable... a psychologist + psychiatrist did help me a lot. My sleep is still bad (at it's best), but it's way better + I also had diarrhea. That's now gone! I can't tell you enough how much it did help for me. Stay strong man! You and I (and everyone else who been trough that sh*tt* dr*g) deserve a second chance!! But we have to fight for it! If we could make it worse, we can make it better. And even if we will never go back to normal, we can absolutely do better!
Their broker will eventually declare total loss on the stock and release any debt and collateral that the short seller has. This usually doesn’t occur until the company that was shorted is liquidated. But bottom line the short seller will have have 100% realized profit since the stock they borrowed to short sell it is worthless.
Don’t worry, big brother is coming in to save us regular folks! I trust in big brother. They will make things right, because we are American. And our government loves us. They have never done anything nefarious. They are straight as arrows. We must trust government. We must worship government. All kneel for big brother. ALL KNEEL. And a moment of silence to show and vow your loyalty to perfect American government! 🤫
I still don‘t understand how this can happen. There are so many security KPIs like Value at Risk, CVar, the Risk adjusted Returns, the Treasury Cockpit that measures daily and future expected liquidity. The cost of capital measurement, etc. If they didn’t need money they could’ve Just stopped accepting new customers in the First place. The Management of this Bank and the Treasury Department is a disgrace to the whole banking world. We had negative Bond yields in europe for years now and we still Made it work. With a rise in cost of Capital, everyone knows that the liquidity has to be raised in Order to Match increasing liquidity needs. The next possible solution is to buy liquidity from international markets where you can still get money for cheap and increase your own prices to Match the costs. It’s gonna be a Hard year but at least they would have survived
After a battle, everyone is a general but to me 10Y bonds always seemed terrifying. Even if interest rates "looked quite high", I would still fear buying 10Y bonds. 10 years is a very long period and many unexpected things may happen.
.1 to .2. yeah! let's do that! 3 years vs 10 years, oh well! This will last forever!!!!! Greed makes everything happen. I think the response term is, "oops".
It is rare that someone with a crazy high IQ can explain something to the rest of us so clearly. Always enjoy your videos. Also, it looks like you are feeling better than you were just recently. If so, that’s great! Thank you for being awesome!
There was nio real reason to close signature bank except for the governent trying to stiffle crypto thats why they keep that one in the background but it backfired
This was such a bad move on SVB that I think it was purposely done. I don’t get why a bank would buy so many shitty bonds??? It’s like a self inflected wound.
