Lots of interesting news today

DSM Turbos said:
www.cnbc.com

Here's how the second-biggest bank collapse in U.S. history happened in just 48 hours

As dust begins to settle on the biggest American bank failure since 2008, members of the VC community lament the role other investors played in SVB's demise.
www.cnbc.com www.cnbc.com

Vc’s start a panic and make their clients run on the bank and makes the bank collapse
Click to expand...
Haven't seen anything that recession starting since 2008. How this ripples through the tech industry and markets could very well be the tipping point.
 
DSM Turbos said:
www.cnbc.com

Here's how the second-biggest bank collapse in U.S. history happened in just 48 hours

As dust begins to settle on the biggest American bank failure since 2008, members of the VC community lament the role other investors played in SVB's demise.
www.cnbc.com www.cnbc.com

Vc’s start a panic and make their clients run on the bank and makes the bank collapse
Click to expand...
So the bank really didn't collapse.
The Feds are making sure everyone is whole, by taking control and using your tax dollars and FDIC money (that would be used for other bank runs) and giving it to speculators and investors. Re-distribution if you will.
So is the FDIC insurance more than $250,000 now?
Are there no negative repercussions for dumb/stupid/ignorant/corrupt banking behavior anymore?
It seems that money really has no 'value' as most already believe. Wonder how much extra they'll print this time?
 
benXJ said:
So the bank really didn't collapse.
The Feds are making sure everyone is whole, by taking control and using your tax dollars and FDIC money (that would be used for other bank runs) and giving it to speculators and investors. Re-distribution if you will.
So is the FDIC insurance more than $250,000 now?
Are there no negative repercussions for dumb/stupid/ignorant/corrupt banking behavior anymore?
It seems that money really has no 'value' as most already believe. Wonder how much extra they'll print this time?
Click to expand...
The bank did collapse.
The bank as an entity no longer exists. Employees will be fired, building sold, etc.
So yes plenty of negative consequences for those that actually performed the risky behavior (and their unlucky employees that likely had nothing to do with it).

The extra backing is only going to the account holders to prevent THEM from getting fucked and this creating the beginnings of a major fiasco from lots and lot of people not getting payroll.
 
So yea....the gov't is taking this opportunity to get their tentacles a bit deeper in your daily life. They are here to help, right?

$250k, $500k, $1MM......we got you.

That helps nothing....the higher ups will just move on. The industry is no stronger. No one learns. Oh no, they have to sell the building.

Don't pay your mortgage? Thats ok. We'll work with you.
Don't pay rent? Here is a tax payer funded program.
Have 5 kids you can't afford? Here's a WIC and SNAP card
Take out a student loan for a worthless philosophy degree? We'll forgive that.

What happens when Truist or the like goes belly up? The FDIC is gonna make my $1MM savings account whole? Everyones?
 
wraltechwire.com

Silicon Valley Bank employees offered 1.5 times their pay by Feds | WRAL TechWire

By Ramishah Maruf, CNN The US Federal Deposit Insurance Corporation offered Silicon Valley Bank employees 45 days of employment and 1.5 times their salary, reports say. An FDIC official did not comment on the details to CNN, but said it is standard practice and one of the first steps the...
wraltechwire.com wraltechwire.com

No employees are harmed either. You gonna get 1.5 times your salary as a bailout at your job if the boss messes up and over leverages?

Why even work?
Looks like a preferential political bailout to me
Profits are privatized and losses are socialized.
 
benXJ said:
wraltechwire.com

Silicon Valley Bank employees offered 1.5 times their pay by Feds | WRAL TechWire

By Ramishah Maruf, CNN The US Federal Deposit Insurance Corporation offered Silicon Valley Bank employees 45 days of employment and 1.5 times their salary, reports say. An FDIC official did not comment on the details to CNN, but said it is standard practice and one of the first steps the...
wraltechwire.com wraltechwire.com

No employees are harmed either. You gonna get 1.5 times your salary as a bailout at your job if the boss messes up and over leverages?
Click to expand...
I guess you don't consider losing your job to be be harmed?
The company is being liquidated. Do you understand what that means?
Do you understand that "the government" isn't running the show here? This is literally what the FDIC is for.
 
benXJ said:
What?

Biden and Yellen ( the government) are sure acting like they are in charge here.

With directives and what not.

FDIC is for $250k. Who said to go above?
Click to expand...
You should really spend some time reading news articles that explain it... that were posted in other threads. See Online Credit Card Companies

FDIC is 3rd party that operates at the "advice" of the president. Yellen - not an employee of Biden's - goes to Biden to get his input on the idea of the unusual move to use their (FDIC's) money to cover > $250k in order to prevent a major economic disaster. I believe they could technically do it even w/o his (Biden's) approval. This gives the FDIC some credibility as looking like it is working with the government and has the confidence of the Admin, and lets Biden take a little credit for it and still look like big boss man.
 
Yellen (an employee of the government) asked Biden (well, asked his people, again, employees of the government) about this matter.
The FDIC reports to the president and the speaker of the house.
The FDIC was created by congress (I bet they want to stay in good graces with congress, e.g the government)

and

SVB pushed back and lobbied congress (again, the gov't) to keep FDIC premiums low....not that long ago. They said they were good, not susceptible to failing, nothing to see here. (Did the FDIC/gov't just believe them, no oversight, no checking books?) Absolutely they should have REALLY failed.....bosses in jail, no 45 day 1.5 times extra salary for employees, $250k for each depositor and move on. Do better next time. Due diligence. Otherwise it'll just keep happening....no one learns.
When I lost my job, I didn't get 1.5 times my salary. Why does a teller deserve that?

The government is in charge. And they are more in charge and have more control than they did on Friday morning. Just as planned. You don't think the FDIC won't ask congress for more (tax payer) money if they get low on funds? That sure might happen if they start reimbursing more than $250k for everyone.

If the FDIC was run by you or me, out reach of lobbying efforts and congressional/presidential/secretary of the treasury influence, then you could say the gov't is not in charge.

This makes it seem like the gov't is in charge:

"The FDIC is managed by a five-person Board of Directors that includes the Comptroller of the Currency and the Director of the Consumer Financial Protection Bureau, all of whom are appointed by the President and confirmed by the Senate, with no more than three being from the same political party"------from FDIC.gov
 

Horowitz: With the impending bank bailout and stagflation trap, it’s time to clip the wings of the Federal Reserve​

Op-ed
Daniel Horowitz
March 13, 2023


We have no free market and never will have one so long as the Federal Reserve exists in its current form. It is the unelected judge, jury, and executioner of the economy that can pick winners and losers by manipulating credit and monetary policy to artificially inflate certain investments and investors at the expense of others. Years of unnaturally low interest rates have enriched well-connected woke elites at the expense of consumers and savers. Now that their Ponzi scheme is coming due, with the collapse of one of the wokest banks and the vicious cycle of stagflation and reliance on loose money, it’s time for conservatives and GOP presidential candidates to revisit the idea of either abolishing or severely limiting the role of the Fed.
For the past several generations, the Democrat Party thrived on class warfare. Democrats claimed that conservatives elevated the wealthy at the expense of the working class simply because they didn’t support free stuff and redistribution of wealth through an extremely progressive income tax on legitimately earned wealth. But it turns out that their policies have actually artificially enriched the wealthy and harmed middle-income consumers and savers, but unlike with our policies, the wealthy never earned these tendentious favors, nor are they constitutional.
In many respects, the Federal Reserve has more power than all three branches of government put together, yet the members never stand for reelection. For years, the Federal Reserve has created endless inflation and loose credit with near-zero interest rates and by buying up trillions of dollars of securities and treasuries. It distorted the market, allowed woke banks like Silicon Valley Bank to overextend themselves, and even become the primary lender for solar financing in America, based on Monopoly money.

Now that the Fed inevitably was forced to hike interest rates to curb some of the historic inflation it helped create, Silicon Valley Bank, along with Signature Bank in New York (the bank Barney Frank joined when he left Congress), collapsed and was taken over by the FDIC. But just like a frustrated teen losing a video game, the Federal Reserve and the Treasury Department are pulling the plug on the game so that their buddies don’t lose. Remember, until Friday, SVB’s CEO, Gregory Becker, was on the board of directors at the San Francisco Fed. It’s one big game of, by, and for the politically connected venture socialists.

Less than 10 hours after Treasury Secretary Janet Yellen promised there would be no new bank bailout, the Federal Reserve issued a statement Sunday evening announcing a spectacular bailout of every penny of deposits both at SVB and at Signature Bank. Except this one, unlike in 2008, won’t even require a vote in Congress, because the Federal Reserve and the Treasury Department have the backhanded tools to print money, even though we have reached the statutory debt limit.

“The financing will be made available through the creation of a new Bank Term Funding Program (BTFP), offering loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging U.S. Treasuries, agency debt and mortgage-backed securities, and other qualifying assets as collateral,” wrote the Fed. “These assets will be valued at par. The BTFP will be an additional source of liquidity against high-quality securities, eliminating an institution’s need to quickly sell those securities in times of stress.

In other words, they are back to printing money. The Fed has already grown its balance sheet by $4.7 trillion during the frenetic COVID money-pumping scheme (in addition to Congress’ $5.5 trillion fiscal stimulus), and has only off-loaded roughly $600 billion over the past year.



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This was after many preceding years of ultra-loose monetary policy. Finally, as inflation reached record highs last year, the Fed began to ease up on those policies. Not any more! The Fed is promising to buy the assets “at par,” not at market value, which will have the effect of loosening bank credit beyond belief.

Additionally, along with the Treasury Department, the Fed will make $25 billion available as a backstop to this quantitative easing scam. The debt limit is a complete mockery, because evidently the Treasury Department can come up with vast sums of money on the fly, and this is likely the tip of the iceberg. Once the initial shock of this policy sets in, the debate will merely be over how many hundreds of billions are offered to stem the panic from other banks.

The immediate effect of this bailout will be to halt all interest rate hikes. As of this morning, the yield on the two-year Treasury note was down more than 80 basis points since last week, in anticipation of the return to loose credit. So the government will crush consumers with record inflation to bail out the well-connected woke (ESG-supporting) elites who took advantage of the unnatural and manipulated easy credit. John Edwards was indeed correct that there are two Americas, except it’s not because of a lack of government involvement. It’s because of too much big government, and particularly an unelected fourth branch of government that should be abolished.


If it’s impractical to immediately abolish the Federal Reserve, we should at a minimum remove its power to serve as both the arsonist and the firefighter. Congress must repeal the Humphrey-Hawkins bill from 1978, which empowers the Fed with a “dual mandate” to achieve maximum sustainable employment and keep prices stable. The Fed should be forced to focus solely on price stability. This would take “the game” out of the Fed. If it has no ability to create stimulus and provide monetary morphine, Wall Street can’t anticipate it and build an artificial economy based on its nourishment.

Market-distorting monetary manipulations are no different from market-distorting fiscal policy from the government. This is how the statists have successfully dissuaded us from ever limiting government. “You really plan to pull the rug out from under such-and-such industry?” the forces of special interests groan, be it health care or the financial sector. The same applies to monetary policy. There is no reason why we should allow the Fed to use monetary stimulus in such an officious manner that the entire market would collapse without the monetary morphine, even during robust economic growth.


The Fed should also be banned from buying up other securities and bonds, such as mortgage-backed securities from Freddie and Fannie. We must stop distorting the markets by encouraging investments on the basis of how much capital is available instead of real growth in a specific industry. It’s time to go back to the days of real economic growth built on the fiscal equivalent of protein and healthy fats, not sugar and carbs for the well-connected elites involved in regulatory capture.

We have enough lawless, unelected branches of government. It’s time to stop creating asset bubbles and misallocation of resources and return to a true organic equities market that reflects the economic realities of America. That will not happen until the Fed is brought under the checks and balances of the republic. As Andrew Jackson warned of a central bank, “The bold effort the present (central) bank had made to control the government … [is] but premonitions of the fate that awaits the American people should they be deluded into a perpetuation of this institution or the establishment of another like it."
 
The most fascinating thing about this article is that alligators are now a unit of measurement.
www.sciencetimes.com

Massive Asteroid About the Size of 69 American Alligators Will Pass by Earth Tuesday, NASA Warns

A huge asteroid will pass by Earth Tuesday. Read the article for the details. (Photo : Wikimedia Commons/Sebastian Kaulitzki/Science Photo Library/Corbis) Massive Asteroid About the Size of 69 American Alligators Will Pass by Earth Tuesday, NASA Warns Another huge space rock is heading our way
www.sciencetimes.com www.sciencetimes.com
 
RatLabGuy said:
The most fascinating thing about this article is that alligators are now a unit of measurement.
www.sciencetimes.com

Massive Asteroid About the Size of 69 American Alligators Will Pass by Earth Tuesday, NASA Warns

A huge asteroid will pass by Earth Tuesday. Read the article for the details. (Photo : Wikimedia Commons/Sebastian Kaulitzki/Science Photo Library/Corbis) Massive Asteroid About the Size of 69 American Alligators Will Pass by Earth Tuesday, NASA Warns Another huge space rock is heading our way
www.sciencetimes.com www.sciencetimes.com
Click to expand...


And they have to be American alligators. You know why?

 
orange150 said:
I don’t know where this belongs, so I’m putting it here

www.theautopian.com

Our Suspension Engineer's Take On The 'Solid Axle vs Independent Suspension' Off-Road Debate - The Autopian

As we quickly approach the one year anniversary of this illustrious website, I am reminded of how I came to be involved with this group of interesting, diverse, unusual, but eminently talented group of writers and car enthusiasts. It all started a few years ago when David Tracy was still working...
www.theautopian.com www.theautopian.com
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For such an in-depth assessment, it completely overlooked the greatest advantage of solid axles offroad:
Upward articulation on one side forces downward articulation on the opposite wheel. So when one wheel climbs up a rock, the other side tries to balance the load like a see-saw. An independent suspension is, well, independent, and can do no such thing. Upward force on one side simply reduces the contact force and therefore traction on the opposite side.
 
jeepinmatt said:
For such an in-depth assessment, it completely overlooked the greatest advantage of solid axles offroad:
Upward articulation on one side forces downward articulation on the opposite wheel. So when one wheel climbs up a rock, the other side tries to balance the load like a see-saw. An independent suspension is, well, independent, and can do no such thing. Upward force on one side simply reduces the contact force and therefore traction on the opposite side.
Click to expand...

He misses more than that. I didn't see anywhere that he allowed for corner weight ( and weight in general) and it's effect on the roll axis and roll moment.
He also discusses height in mm and is actually talking about 2.5" ride height. How many of us have that?
But the big tell is when he starts talking about anti-roll bars ...... which negate much of the difference between solid and independent suspensions.
I don't know that he realizes how much difference the shock travel and ride height make in suspension designs ...... especially when his total shock travel is3.4" or less.
I have right around 8" on my Samurai front end.
 
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