He was telling you to avoid falling for the temptation and commit the biggest financial mistake made by most men. Quote from Zorba the Greek, a 1964 film: "And is not a man stupid? I'm a man, so I'm married. Wife, children, house--everything. The full catastrophe."
JPMorgan takes over First Republic after it's seized by the Californian financial regulator This means the banking sector is still stable for now. Doom has been postponed.
I must have blocked from my mind the traumatizing news. I thought US based banks still still had a low reserve requirement, but I see that you are correct. We went to zero reserve requirements 3 years ago. https://www.federalreserve.gov/monetarypolicy/reservereq.htm
Politically in the USA, things are slightly different this time around with the debt limit posturing. There is a group of Republican Congressmen in the House that are ... uncompromising in their views. I'm not sure how aware folks outside our borders are of the whole Speaker of the House election saga, but it informs the problems within the Republican party and what the Speaker of the House is dealing with. The Republican party is having to negotiate within it's ranks with a radical, uncompromising sect. They are going to continue pushing for concessions/dialogue on spending before pushing through a debt ceiling bill. The Dems in the Senate (led by Shumer) and Biden administration think they can successfully blame the Republican party for non-action on the debt ceiling issue. They aren't going to budge as long as they perceive a political benefit to stonewalling Republican calls for dialogue on spending. There is a very real political impass right now and both sides are gambling that the other will cave to pressure from their constituents. Yellen et al are trying to wake the masses up on the issue so that pressure might build and someone caves. It's not in anyone's interest to let a default happen.
Let me very quickly and comfortably put you at ease - there will be no default with regards to debt ceiling.
The banking system is wobbly this morning. Regional banks were down yesterday and are down AGAIN pre-market this morning. Meanwhile, the FED is going to raise rates today. What could go wrong?
Banks are struggling with deposit flight as money moves to chase yields in money market funds. https://mishtalk.com/economics/a-ti...ving-banks-will-kill-bank-profits-and-lending
One would also expect that some of this unencumbered money is making its way to metals. Spot is therefore rising with demand and because of shortages, premium is also rising thus creating a perfect storm for future pricing. I can only see it dropping when the bank musical chairs stop. This means that despite rising prices we are in a dip. Buy now!
Doesnt seem like the mmt crew can fix any of this haha. Just another failed experiment. Who would have guessed? Its burning faster than i could have ever hoped for.
