“I am feeling very good about that prediction,” Treasury Secretary Janet Yellen told Bloomberg when asked whether the U.S. would avoid a recession while still containing inflation. Yet, commercial bankruptcies increased nearly 17% in August compared to July, reports Fortune.com, marking the 13th consecutive month that total bankruptcies, including families and individuals, have logged year-over-year increases, according to the American Bankruptcy Institute.
McKenzie made the morning show rounds earlier this summer pitching his book. He is an actor who during COVID got hooked on speculating on crypto and other speculative vehicles. Instead of taking his losses like a big boy, he decided crypto and capitalism itself is all a big fraud and decided to write some articles with Mr. Silverman and ultimately the book Easy Money.
“I’m actually quite proud of the fact that we did YRC [Yellow’s previous name],” Mnuchin said in 2020. “It saved lots and lots and lots of jobs. I’ve received calls from the company, from truckers, from other people who appreciate this.”
The deposit insurer estimates the Deposit Insurance Fund will lose $54.2 million by having Dream First Bank, National Association, of Syracuse, Kansas assume all the deposits and enter into a commercial shared-loss agreement with the FDIC on the loans it purchased of the former Heartland Tri-State Bank.
Patterson weaves together a very readable story of how Taleb and Spitznagel met and the frustrations of selling tail-risk hedging to a Wall Street that held the collective belief of Modern Portfolio Theory, diversification of high and low risk investments in a portfolio provides protection from an unknown market calamity.
it’s plausible that pickleball medical costs are driving 5-10 percent of the unexpected medical cost trend this year.”
“There were $152 million in nationwide sales for Saturday’s $829 million jackpot—a 25% decline from the $197 million in sales for another $825 million Powerball drawing on Oct. 29, 2022, according to Lottoreport.com, which tracks sales.”
Higher rates have already taken a toll on real estate investors and now hoteliers. Bloomberg reports “Ashford Hospitality Trust Inc. expects to return 19 hotels to lenders in cities including Las Vegas and Atlanta.” Hotels brands expected to be returned include Residence Inn, SpringHill Suites, and Marriott.
“This is the first inning. They [banks] are selling the assets that are their highest-quality assets and that are short-duration and floating rate.” Some quick math on the $2 billion sale looks to be a 3% hit to PacWest on their best loans.
What she knows is as the world has gone from paper to digits “bank runs clearly are speeding up. And the impact of that is it's revealing that the traditional banking system-- it's always been fundamentally unstable. But it's even more unstable than folks had realized. And banks in general, as a result of the fact that the liabilities can be withdrawn a lot faster, are going to need to hold more cash.”
The FDIC can decide what deposits live and which ones die. For now, the deposit insurer has told SVB’s Cayman depositors they can file unsecured claims in the bankruptcy by July 10. The receiver (FDIC) has up to 180 days to determine whether to allow the claims, according to a notice sent by one of SVB’s customers to its investors.
Bobbie Gentry “looked like a Greek goddess and she was deeply involved in tasks usually reserved for men. Obviously there are many factors behind success but, in 1967, America was clearly not ready to roll out the red carpet for the female artist who wrote, played and produced her own material.”
Banks can’t raise equity at this point given low valuations and tepid investor demand, so they must reduce their loan books and “find places to pull back on existing loans and future loan commitments.”
While we’ve all moved on from COVID, the government’s COVID largesse has a long tail. Kaplan’s been talking to mayors from around the country and they tell him “American Rescue Act (ARPA) money must be spent by states and municipalities between now and the end of 2024 or it’s lost.
It would take a Swifty to know Swifties and their individual demand curves.
A rose-colored glasses wearing Jamie Dimon said on May 11th as paraphrased by CNBC, “Regional banks are “quite strong” and will have good financial results, but managers are worried because of the bank runs that have taken down three firms, he said.”
Depositors are not listening to Mr. Dimon and neither are regional bank shareholders.
That last boldfaced item is “$50 loan from the FDIC.” The deposit insurer doesn’t have that kind of money. The FDIC borrowed it from the Fed (which doesn’t have it either but can conjure it up out of thin air) to lend to JP Morgan Chase. JPM then paid off the $30 billion it and the other 10 big banks placed on deposit as First Republic was circling the drain.
As Snider points out, “There is so much hubris attached to [CLOs] because they are basically made to be quantified by mathematical models.” So, the Fed can lower rates but that won’t save real estate. Real estate will continue to crash and THAT will bring down rates.
Yes, the taxpayers will be the unwitting holders of First Republic’s bad assets, while one of the FDIC’s favored bidders gets the good stuff at a discount. Jamie Dimon’s J.P. Morgan already has ten percent of the nation’s deposits making that bank ineligible to pick up First Republic but don’t be surprised if Jamie receives a “special government waiver” if he submits the winning bid.
“No. I think EV is going to be something you're going to go to a museum with my kids and be like, wow, that was an evolutionary dead.”
