Anyone Watching the Global Economy?

[Kingpin]

Feds are also expected to raise deposit coverage to prevent panic. If you're still in banks, make sure it's a good one, or even better, a few good ones.

[OnMyWay]

Now the third largest ever, Signature Bank.

https://en.m.wikipedia.org/wiki/List_of_largest_U.S._bank_failures

[OnMyWay]

50 minutes ago, Kingpin said:

Feds are also expected to raise deposit coverage to prevent panic. If you're still in banks, make sure it's a good one, or even better, a few good ones.

SVB was a commercial bank serving many corporations.  Probably very few personal accounts, if any.  I read that over 90% of accounts have over the FDIC insurance limit of 250k.  So now the taxpayers have to make these commercial customers whole???  Something wrong with this picture.

It would appear that the woke management spent more time and money on DEI than running the banking business.

[mountainside]

5 hours ago, RBM said:

As a wise man said, spend it, enjoy it while your well able to do.

 

1 hour ago, Mike J said:

My wife says the same.  "You are already 72, enjoy it because you can't take it with you."  I say to her that "we need to protect the money because you will live long after I die".  She tells me; "I was poor when I met you and I know how to get by with little.  I will be fine."  As often as she says this it still brings tears to my eyes.

Mike, your wife and mine are soulmates.  My wife Jenny wipes away the same tears that you shed, as I imagine your wife also does, never realizing how truly special she is.  Jenny sees herself as nothing more than a good loving wife.  Men like you and I know differently.  And know the astronomical odds of finding the best things in our lives all the way on the other side of the world.

[Snowy79]

21 hours ago, JJReyes said:

Ever since the start of this inflation cycle, I have been keeping an eye on global debt.  Most troubling is China with its collapsing real estate market, aging population, withdrawal of international companies from manufacturing, and the undisclosed total borrowings by their national, provincial and city governments.  The United States, Great Britain and European nations are sitting on a mountain of debt.  

Any suggestions as to where to park your money?  

I'm seeing property prices increasing on Boracay and lots of very expensive properties sprouting up.  My condo has doubled in value in the last 5yrs and currently they are advertising time share condos 500m away starting at 14.8m Peso with forecast final selling fees once constructed of 26m Peso. Even if they go for 15m my condo is 1/3rd larger so should also shoot up. Once I'm definitely over the 10m selling fee I'll be selling up, leasing land and building a retirement pad with a view and puting my feet up even higher. 

[stevewool]

I just put money into the best savings accounts going for a year then move it again if there is a better rate , have the house all paid for , and in 20 months I will be receiving my state pension so I’ll be even richer, that’s when I have to reduce my private pension so I won’t be paying to much tax on the money I’ve already paid tax on 

[Kingpin]

1 hour ago, Snowy79 said:

I'll be selling up, leasing land and building a retirement pad

Hardest part is finding land that isn't for sale, but for lease. It's an interesting option compared to renting though, each with pros and cons.

[OnMyWay]

1 hour ago, Snowy79 said:

My condo has doubled in value in the last 5yrs and currently they are advertising time share condos 500m away starting at 14.8m Peso with forecast final selling fees once constructed of 26m Peso. Even if they go for 15m my condo is 1/3rd larger so should also shoot up.

This rate of appreciation is not sustainable.   Who will buy these overpriced properties?  Chinese?

[JJReyes]

3 hours ago, OnMyWay said:

SVB was a commercial bank serving many corporations.  Probably very few personal accounts, if any.  I read that over 90% of accounts have over the FDIC insurance limit of 250k.  So now the taxpayers have to make these commercial customers whole???  Something wrong with this picture.

The way the US banking system works is all depositors $250K and below will receive their money on Monday morning from federal regulators.  Those who have deposits larger than $250K will receive $250K and potentially the remaining balance at a much later date.  All the Silicon Valley Bank (SVB) assets are sold or purchased by a larger, major bank.  In the SVB situation, most of their assets are low-interest government securities.  With the change of Federal Reserve policy and increasing interest payments to combat inflation, every time SVB sold these securities, they lost money.  Total assets, as sold for cash, is then divided among the remaining depositors.  It could be 95% or 90% or 85% of the remaining deposits.  The biggest loss is to the shareholders.

The Federal Deposit Insurance Corporation (FDIC) is a pooled fund that all banks are required to contribute.  In theory, it is not taxpayer money, unless there are multiple bank failure, and the FDIC starts to run out of money.

[JJReyes]

15 minutes ago, OnMyWay said:

This rate of appreciation is not sustainable.   Who will buy these overpriced properties?  Chinese?

Yes.  At least in the past.  The Chinese are desperately trying to transfer their assets overseas because of their authoritarian government policy called, "shared prosperity."  The fear is confiscation of assets to pay for social services and other expenses.  The China government is closing the loopholes, to stop the outflow.  If you plan to sell over inflated property to the Chinese, do it now.