Wall Street’s sharks are circling and investors who thrive on uncertainty are ready to make a killing. lopezlinette breaks down how the chaos from the banking crisis is giving some of Wall Street’s sharpest minds the chance to rake in a lot of money. ⬇️
, this crisis could bring down the whole banking system. Making that guarantee would insulate not just depositors, of course, but also the shareholders in other medium-sized banks who fear they'll be subject to the same Old Testament justice as their peers at SVB.
Beyond the technical merits of the argument, Ackman and the"guarantee it all" crew's caterwauling is problematic because, like fire, bank runs feed on oxygen."The longer people talk about this, the more risk there is," the bank executive told me. The more people hear that the system is on the verge of collapse, the more likely it is to become a self-fulfilling prophecy as more people get scared and yank their money from the bank unnecessarily.
"It's been quite an interesting seven weeks," Powell said at his latest press conference to nervous laughter. He added:"It's not a surprise that there are institutions that have unhedged long positions in long-duration securities that have lost value as longer-term rates have gone up due to our rate increases."
Translation: If you're a bank and you're offside, Powell isn't going to change the rules of money to ensure you can keep playing the game. The new rules — higher interest rates — will remain for the foreseeable future. But the future is a moving target. At the beginning of this year it seemed as if the Fed would have to hike dramatically because the economy was so strong and the stock market was rallying. Then the Silicon Valley Bank run happened, and some called for the Fed to cut rates to help the banks. Now all we can do is wait. When banks have problems, they lend more slowly. When lending slows, the economy slows. And when the economy slows, inflation cools — at least in theory.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Wall Street is thirsty for its next big investment opportunity: The West's vanishing waterCritics accuse Greenstone — a subsidiary of the East Coast financial services conglomerate MassMutual — of trying to profit off Cibola's most precious and limited resource: water.
Consulte Mais informação »
The most shorted names on Wall Street include a plant-based food stock and five biotechsThese are the stocks investors raised their bets against in the first half of March.
Consulte Mais informação »
PVH Shares Soars as Wall Street Sees Signs of TractionStefan Larsson’s strategic plan is showing signs of strength despite a tough macroeconomic environment.
Consulte Mais informação »
Wall Street ends down with tech; investors assess bank commentsU.S. stocks ended slightly lower on Tuesday as investors weighed comments from a top U.S. regulator on struggling banks and sold shares of technology-related names after their recent strong run.
Consulte Mais informação »
Wall Street Expects Record Quarter For Tesla With 420,000 DeliveriesThat would make Q1 2023 Tesla's best quarter to date, exceeding previous quarter deliveries by 15,000 vehicles (+3.7%) and Q1 2022 by 110,000 units (+39%).
Consulte Mais informação »
First Citizens Buys Silicon Valley BankFirst Citizens, one of the nation's biggest regional banks, is acquiring all of failed Silicon Valley Bank’s deposits, loans and branches. See the potential biases and similarities in reports from wsj, bloomberg and foxbusiness:
Consulte Mais informação »