I wouldn't want to be that Jim guy right now. I don't know the particulars of this matter, but to me, this is an indication that financial analysts fall into three broad categories- outright crooks, those who are making educated guesses, and those who are just plain guessing.

quote:

Originally posted by Dakor:
The inverted bond yields/inflation are also the rationale for foreign governments to invest in currencies other than the U.S. dollar, which is why you hear of China's efforts in wanting the yuan to be the new standard more and more lately. The current illegitimate administration can't do anything right and every action they take appears to be motivated by their desire to weaken, if not destroy, the U.S.

Yes.
Banks borrow short and lend long.
With an inverted yield curve, many will eventually go out of business.

quote:

Originally posted by parabellum:
I wouldn't want to be that Jim guy right now. I don't know teh particulars of this matter, but to me, this is an indication that financial analysts fall into three broad categories- outright crooks, those who are making educated guesses, and those who are just plain guessing.

Jim Cramer's "Mad Money" show comes with a hefty disclaimer...

quote:

You should not treat any opinion expressed by Cramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Cramer’s opinions are based upon information he considers reliable, but neither CNBC nor its affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such.

Past performance is not indicative of future results. Neither Cramer nor CNBC guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment discussed on this show. Strategies or investments discussed may fluctuate in price or value. Investors may get back less than invested. Investments or strategies mentioned on this show may not be suitable for you. This material does not take into account your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. You must make an independent decision regarding investments or strategies mentioned on this show. Before acting on information on this show, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

quote:

Originally posted by parabellum:
I wouldn't want to be that Jim guy right now. I don't know the particulars of this matter, but to me, this is an indication that financial analysts fall into three broad categories- outright crooks, those who are making educated guesses, and those who are just plain guessing.

Para, that buffoon did the same exact thing in the run up to the 2008 financial crisis. He was encouraging people to buy bank stocks right up until the time the banks failed.

The fact that CNBC still allows him to have a show speaks volumes about the ethics and honesty of that network.

I find it hard to believe Cramer is not being paid by big money to promote stocks plays that work to their advantage.

quote:

Originally posted by Broadside:
Para, that buffoon did the same exact thing in the run up to the 2008 financial crisis. He was encouraging people to buy bank stocks right up until the time the banks failed.

And the same with tech stocks heading into the 2000 dot-com bubble burst. (Though that was on his financial advice website, since he didn't yet have a TV show at that time.)

I'm not very smart about investments, so I had to look up "inverted yield curve".

In case there are others in this situation:



An inverted yield curve shows that long-term interest rates are less than short-term interest rates. With an inverted yield curve, the yield decreases the farther away the maturity date is. Sometimes referred to as a negative yield curve, the inverted curve has proven in the past to be a reliable indicator of a recession.

quote:

and everyone was flush with cash thanks to trillions of dollars of stimulus from the government

Huge waste of taxpayer dollars.

The regional banks stock prices got whacked Friday more as a contagion than anything else. I’m not worried about them as most are solid well capitalised banks that lend home loan funds etc.

SVB specifically made it their primary business out lending to startups. Combined with SVB putting cash into long treasuries that are under water and they couldn’t sell then for anywhere close to what the paid to raise cash to give clients their cash Then the VC’s piled on Thursday with prominent VC’s saying pull your funds. So maybe when your VC business relies on a firehouse of cheap Quantitative Easing money and QE money is ending AND rates are heading up you gang up to murder a bank and get the Fed to open the cash firehouse again and cut rates ? Just a wild thought

Keep your cash under 250k per account in several banks to get the best yields and protection regardless.

quote:

Originally posted by spunk639:
Building Back Better, great job Joe.

The people who ran the bank took a big gamble with bonds and the interest rate and lost. Nothing to do with Joe.

Yes, SVB should have marginalized their assets against interest rate increases but inflation (the impetus to IR) spiked due to the dumbass Commies in Congress & Ol' Joe the Dipshit drove the freakin' bus. His latest budget would cause even more mayhem. Saying the illegitimate President had nothing to do it with it is horseshit.

quote:

Originally posted by cyberiad:

quote:

Originally posted by spunk639:
Building Back Better, great job Joe.

The people who ran the bank took a big gamble with bonds and the interest rate and lost. Nothing to do with Joe.

Oh horseshit. It had everything to do with him and his shitty economic policies which lead to record inflation and in turn a quick raising of interest rates to combat it.

Ouch.



I also read that Mark Cuban had $10 million in SVB.

Home Depot co-founder Bernie Marcus, who has supported Donald Trump in the past, comments on this debacle...

Home Depot co-founder torches ‘woke’ Silicon Valley Bank collapse, warns recession may be here already
Banks are more concerned with 'global warming' than shareholder returns, Bernie Marcus argued

by Kayla Bailey
Fox News

---------------

Home Depot co-founder Bernie Marcus issued a strong warning for everyday Americans.

During an appearance on "Cavuto Live," Marcus discussed the devastating collapse of Silicon Valley Bank, urging Americans to "wake up" and understand that the U.S. economy is in "tough times."

"I can't wait for Biden to get on the speech again and talk about how great the economy is and how it's moving forward and getting stronger by the day. And this is an indication that whatever he says is not true. And maybe the American people will finally wake up and understand that we're living in very tough times, that, in fact, that a recession may have already started. Who knows? But it doesn't look good," Marcus argued, Saturday...

..."I feel bad for all of these people that lost all their money in this woke bank. You know, it was more distressing to hear that the bank officials sold off their stock before this happened. It's depressing to me. Who knows whether the Justice Department would go after them? They're a woke company, so I guess not. And they'll probably get away with it," he said to host Neil Cavuto...

..."I think that the system, that the administration has pushed many of these banks into [being] more concerned about global warming than they do about shareholder return. And these banks are badly run because everybody is focused on diversity and all of the woke issues and not concentrating on the one thing they should, which is, shareholder returns," Marcus continued.

"Instead of protecting the shareholders and their employees, they are more concerned about the social policies. And I think it's probably a badly run bank. They've been there for a lot of years. It's pathetic that so many people lost money that won't get it back."...

..."The Fed keeps raising rates and inflation keeps going in the wrong direction. It's not staying where it should be. People are struggling. People can't pay their bills. They can't fill their tanks with gas. And if you think that's a good sign, I don't think it is. And we have an administration that's obtuse to this. They just keep talking about the great times and how good it is. It's not good," Marcus concluded...

Read the whole article

Well at least Harry & Meghan have their FTX Crypto Currency investments to back them up.

I'm not googling but going from memory but seems like Cramer got severely sanctioned for market manipulation about 25 years ago and was affiliated with CNBC back then.

Blow hard snake oil grifter that fits right in the nothing but crap network. If you take financial advice from this guy you'll have patches on your britches.

I saw a gossip post that Meghan and Harry keep their millions in SVB and it could all be at risk. ROKU is said to have millions on deposit and Etsey is delaying vendor payments - rumors but where there's smoke there's fire - Monday will be interesting.

Cramer is a complete moron. I think there is even a Cramer inverse ETF. MSNBC just spoons out doses of Cramer daily as if he's some kind of investment Svengali.

quote:

Originally posted by parabellum:
I wouldn't want to be that Jim guy right now. I don't know the particulars of this matter, but to me, this is an indication that financial analysts fall into three broad categories- outright crooks, those who are making educated guesses, and those who are just plain guessing.

I used to follow Jim Cramer, even paid for his expensive subscription. Took a bath on at least 3 stocks he touted. I finally wised up and decided he's a shill. Worse than any 3 card monte shill on the street.

quote:

Originally posted by chellim1:

quote:

Originally posted by Dakor:
The inverted bond yields/inflation are also the rationale for foreign governments to invest in currencies other than the U.S. dollar, which is why you hear of China's efforts in wanting the yuan to be the new standard more and more lately. The current illegitimate administration can't do anything right and every action they take appears to be motivated by their desire to weaken, if not destroy, the U.S.

Yes.
Banks borrow short and lend long.
With an inverted yield curve, many will eventually go out of business.

I don't think that's how it works. It's not like if you get a 30 year mortgage, they fund that mortgage with money that they pay the short term interest rate for the duration of the loan while you're locked in with your interest rate for 30 years.

Banks make their money on the volume of loans they make. When they make a loan, they may take out at the short term interest rate but they add on their margin in the form of interest spread. What happens as interest rates go up is that demand goes down as with any commodity. And when demand goes down, the banks' business volume goes down and their gross profits.

The inverted yield curve recognizes that the high short term interest rates are not going to stay around for the long term.

quote:

Originally posted by 2PAK:
<snip>
I think there is even a Cramer inverse ETF.
<snip>

Now that right there is an insult for the ages.