Moon of Alabama Brecht quote
March 12, 2023
The MoA Week In Review – (Not Ukraine) OT 2023-59

Last week's post on Moon of Alabama:

> The US’ humiliating exclusion from the centre stage of West Asian politics constitutes a “Suez moment” for the superpower, comparable to the crisis experienced by the UK in 1956, which obliged the British to sense that their imperial project had reached a dead end and the old way of doing things—whipping weaker nations into line as ostensible obligations of global leadership —was no longer going to work and would only lead to disastrous reckoning. <


Other issues:

Silicon Valley Bank:

Aukus:

Twitter Files:

Use as open (not Ukraine related) thread …

Comments

Now over 100 trading halts.
https://www.nasdaqtrader.com/trader.aspx?id=tradehalts
NYSE page times out ==> https://www.nyse.com/trade-halt-current

Posted by: too scents | Mar 13 2023 15:54 utc | 201

the ppt have left the building

Posted by: james | Mar 13 2023 15:42 utc | 196
There certainly seems to have been some concerted dip-buying on the US markets, whether that’s PPT or some BTFD-driven algos it’s impossible to say.
Looks like Europe heading for a down close today though.

Posted by: West of England Andy | Mar 13 2023 15:57 utc | 202

There certainly seems to have been some concerted dip-buying on the US markets,
Posted by: West of England Andy | Mar 13 2023 15:57 utc | 203

Circuit breakers can give that impression by halting aggregate downward pressure.

Posted by: too scents | Mar 13 2023 16:02 utc | 203

Posted by: too scents | Mar 13 2023 16:02 utc | 204
Could well be that, I’ve just been looking at the list of halts and suspensions you kindly posted at #202.

Posted by: West of England Andy | Mar 13 2023 16:07 utc | 204

@ james | Mar 13 2023 15:44 utc | 197
Tanka Dahal 🇺🇸🇳🇵 – Twitter

42m
Many US regional banks Stocks are so down that they are halted (nobody can buy or sell). On the other hand, Cryptos are up by double digit.
45m
Banks down, Cryptos UP. (Image)

Posted by: Outraged | Mar 13 2023 16:28 utc | 205

james | Mar 12 2023 17:05 utc | 26
About Treasury-“Fed” solution to bank runs. The class warfare could only be more obvious if the Treasury and Criminal Reserve Bank (but I repeat myself) simply inverted FDIC insurance coverage. Instead of fully insuring all depositors, including those above the current $250k coverage limits, they might have preferred to insure only those deposits above that limit and forced the little people to bail out the FDIC. Probably political optics and concern about America’s increasingly crowded bridges weighed against that option.

Posted by: Doug Hillman | Mar 13 2023 16:39 utc | 206

@Mark2 | Mar 13 2023 7:11 utc | 140

I didn’t have the jabs, none of them.
I did,nt get the virus. Not once.
I did wear the mask when necessary

I didn’t have the jabs, none of them.
I didn’t get the virus. Not once.
I did wear the mask when forced to.
Nothing against what you believe in.
Just saying

Posted by: Vajezatha | Mar 13 2023 16:44 utc | 207

While the Outlaw US Empire enters into its newest banking crisis, China is ending its first session of the 14th National People’s Congress with a speech by Xi, “China to march on new journey with full confidence, energy, as annual ‘two sessions’ successfully conclude”:

Chinese President Xi Jinping addressed the closing meeting of the first session of the 14th National People’s Congress (NPC) on Monday. His remarks comprehensively covered key topics, including the leadership of the Communist Party of China (CPC), national rejuvenation, national reunification, development and security, as well as building a community with a shared future for humanity….
Xi said in his speech that “It is a must to put the people first on the new journey of building China into a great modern socialist country and advancing national rejuvenation.” He said a people-centered philosophy of development must be implemented so that the gains of modernization will benefit all people fairly, and that more notable and substantive progress will be made in promoting prosperity for all….
Xi said on Monday that “China will make efforts to promote the building of a community with a shared future for humanity.” China’s development benefits the world and China cannot develop in isolation from the rest of the world, Xi noted.
Stressing that China will make concrete efforts to advance high-standard opening-up, Xi said the country will not only leverage global markets and resources for its own development, but also promote the development of the whole world….
“We will be dedicated to peace, development, cooperation, and mutual benefit, stand firmly on the right side of history, practice true multilateralism, and uphold the shared values of humanity,” said Xi.
The Chinese president said that China will play an active part in the reform and development of the global governance system, contribute its share to building an open world economy, advance the implementation of the Global Development Initiative and the Global Security Initiative, add more stability and positive energy to the peaceful development of the world, and foster a favorable international environment for China’s development.

China is unafraid of the threat of containment posed by the Outlaw US Empire and will continue its march to build a better world, a march the Empire has no way to stop short of using its nuclear arsenal. As the unfolding banking crisis shows, it has major internal contradictions that will plague its efforts to keep its hegemonic position, and outcome the World welcomes.

Posted by: karlof1 | Mar 13 2023 16:45 utc | 208

The RoW is on the march, and if some tables get knocked over, they’ll be swiftly set right again. Again, Crooke wrote just prior to a major happening–the Banking Crisis brought about by Fed Policy Hudson explains so well. IMO, the West’s own tables are being bowled over by its own actions.
Posted by: karlof1 | Mar 13 2023 15:48 utc | 200
Thank you, my pleasure. Crooke gets more blunt every time now …

Posted by: Bemildred | Mar 13 2023 16:51 utc | 209

Major European markets all closed lower:
FTSE 100 -2.58%
DAX -3.04%
CAC 40 -2.90%
FTSE MIB -4.03%
IBEX 35 -3.51%
Lots of repeated halts and resumptions, then halts again on the Nasdaq link posted by @too scents

Posted by: West of England Andy | Mar 13 2023 16:56 utc | 210

The Quickening …
Maldives resumes diplomatic ties with Iran following Saudi Arabia reconciliation – CGTN

The Republic of Maldives has decided to restore diplomatic ties with Iran, according to a government press release.

Posted by: Outraged | Mar 13 2023 16:59 utc | 211

I didn’t have the jabs, none of them.
I didn’t get the virus that exist on TV. Not once.
I didn’t wear the mask, not once.
All BS

Posted by: Norwegian | Mar 13 2023 17:02 utc | 212

@ b
Cleanup call for shit-posting @ John | Mar 13 2023 16:55 utc | 211

Posted by: Outraged | Mar 13 2023 17:03 utc | 213

At least on the Footsie 100, some major financials suffered today, with names like Standard Chartered down 6.89%, Barclays down 6.31% and Lloyds down 5.12%. These are not like the US mid-sized regional banks.

Posted by: West of England Andy | Mar 13 2023 17:08 utc | 214

Global Times also provides this report on Premier Li Qiang’s “first press conference as China’s premier on Monday morning, during which he addressed various key issues concerning the Chinese economy, vowing to further stabilize growth, prices and employment, while making new progress on high-quality development, supporting private businesses and continuing to open up China’s market to the world.”
It’s clear that CPC’s aim is to promote more local interaction with government structures, which is one reason why Li was made Premier:

As part of efforts to improve the conduct of the government, Li said that government officials at all levels will be encouraged to engage more with local communities to learn about what the people need and seek their opinions on the work of the government.
“I have worked at the local level for a long time and I have a deep feeling: When sitting in the office, there are all problems; but when going into the grassroots, there are solutions. The bests are among the people,” Li said.
Throughout the press conference, the Premier also repeatedly referred to his experience working in local governments. When asked about China’s opening-up policies and China-US relations, Li said he worked in Shanghai for the most part of last year, senior managers of multinational corporations he had talked to were all optimistic about the future of Shanghai and China, and they all believed that cooperation is the sure path to win-win outcomes.
Rebuking some in the US who have been hyping the idea of decoupling with China in recent years, Li said he wondered how many people can truly benefit from this kind of hype. “Encirclement and suppression are in no one’s interests.”

That last paragraph will resonate globally as China exposes the West’s penchant for destroying as opposed to building so it can keep its hegemonic position. That position was reflected by Li’s responses here:

Asked about potential measures to boost the confidence of private firms, Li said he worked in places where the private sector is relatively stronger and had many opportunities to engage with private entrepreneurs and are aware of their expectations and concerns.
“Indeed, for a period of time last year, there were some incorrect discussions in the society, which made some private entrepreneurs feel worried,” the Premier said, stressing that China’s commitment to the development of the private sector is unequivocal and steadfast.
“We will create a level playing field for all kinds of business entities and further support private enterprises in growing and thriving,” Li said, while calling on private entrepreneurs to carry forward the entrepreneurial spirit and strengthen confidence.

As with Russia, China’s economy is much more than its SOEs and relies on its mixed nature to drive growth and innovation. And that aspect is one major reason why universal education and opportunities for any person to reach their potential is so important for the political-economy’s health. Debilitating a nation’s Human Capital as the Outlaw US Empire has done is a sure way to ruin as it deadens the overall possibilities for innovation and advancement.

Posted by: karlof1 | Mar 13 2023 17:11 utc | 215

@fnord | Mar 13 2023 16:28 utc | 278 on
https://www.moonofalabama.org/2023/03/ukraine-open-thread-2023-60/comments/page/3/#comments
The programming of Americans to reject class awareness begins young and runs deep. This problem of nomenclature was already well understood by the sixth century BCE, when there was general recognition that the ruling class comprised not only the wealthy (the plutocrats) but all of those with wealth and power (the oligarchs). The US oligarchs who explicitly rejected democracy when founding the USA (See e.g. Madison James (1787-11-22). The Utility of the Union as a Safeguard Against Domestic Faction and Insurrection (continued). Daily Advertiser. Federalist No. 10.) chose to implement an oligarchic system of government masquerading as a republic in which only the wealthy and powerful were represented) with pretence to democracy (in that the public were permitted to vote for politicians selected and controlled by the oligarchs, enabling the wealthy and powerful to retain absolute control of all of the decision making and power exercising elements of government.
Today that control is so absolute that the facade of democracy has been dropped, in a country where quality and length of life are plummeting along with mean wealth and the ability to loot the rest of the world. Americans believe what they are told by their media to believe, and are programmed to regard beliefs above evidence, crudeness above intelligence and education as deeply suspect (which explains why their popular politicians assume a pose of inarticulate stupidity). This makes the hoi polloi practically immune to remedial education. They become annoyed when people try to introduce class concepts, cannot differentiate between shouting and passion, and consider themselves to be living a Panglossian existence in the best of all possible countries in the best of all possible worlds, even as the capacity of the biosphere to sustain extant life collapses, and the wheels come off a priest ridden society so fractionated by “key issues” that they consistently sacrifice their interests upon the altar of their beliefs.
As Mark Twain said at the World’s Columbian Exposition in Chicago in 1893, “the best thing a patriotic American could do today would be to march on Washington and hang all the lawyers (meaning politicians”). Only in the USA of 2023, that would likely see him arrested as an insurrectionist inciting terrorism and revolution.

Posted by: Hermit | Mar 13 2023 17:15 utc | 216

Ignore UKR and COVID.
It’s a runaway. Despite the Emergency Measures announced by the FED and Treasury late yesterday (Sunday) evening:
Banking Crisis Deepens: Regional Banks are seeing Flight of deposits to the too-big-to fail-megabanks
https://www.wsj.com/articles/bank-stocks-are-taking-their-worst-beating-since-the-covid-scare-d835a0cc
Rout in Bank stocks – First Republic Bank stock plunges 73%.
https://finance.yahoo.com/news/first-republic-stock-down-record-73-amid-fears-of-regional-bank-contagion-131701546.html
Last evening Trump opined we are on the road rivalling Great Depression 1929-1933. Biden the new piper.

Posted by: Likklemore | Mar 13 2023 17:23 utc | 217

And as the Outlaw US Empire’s economy tanks, Russia reports a record high trade surplus as RT details:

Russia’s foreign trade surplus soared last year, driven by gains in exports, data from the Federal Customs Service showed on Monday.
According to the agency, total exports in 2022 reached $591.4 billion, up 19.9% from 2021. Imports, meanwhile, slid 11.7% against the previous year to $259.1 billion. This brought the country’s trade surplus to a record of $332.38 billion, up 67% from $199.5 billion in 2021.
Russia’s foreign trade turnover increased by 8.1% compared to 2021, reaching $850.5 billion. Energy products made up the bulk of Russia’s foreign exports, comprising nearly 65%, and amounting to $383.73 billion. The figure rose 42.8% year-on-year despite Western sanctions imposed on Russian energy supplies, as Moscow actively redirected them towards Asian partners, most notably India and China.
Foodstuffs and agricultural raw materials exports were estimated at $41.3 billion, about 7% of total exports in monetary terms. Sales of ferrous metals, fertilizers, as well precious and semi-precious metals and stones amounted to $62.5 billion.
Industrial equipment and mechanical devices represented Russia’s biggest import at $47.3 billion worth of goods, or 18% of all imports. Moscow also imported $35.7 billion worth of food products and agricultural raw materials (13% of total imports) and $29.8 billion worth of electrical machinery and equipment (11.5%).

The futility of ten rounds of illegal sanctions must be seen by most except for ideologically blind politicos within NATO. And I’ll wager Russia’s trade surplus will set another record in 2023.

Posted by: karlof1 | Mar 13 2023 17:25 utc | 218

Posted by: Petri Krohn | Mar 12 2023 16:01 utc | 13
According to the article you linked to in your post, banks had multiple ways to had their risks in the government securities they bought. While some are in the same position as SVB, others are not. As usual, it comes down to greed and stupidity of management not really understanding the risks they are taking on.
Gee, what a surprise – another company destroyed by poor management. Captain Renault will be shocked!

Posted by: drsmith | Mar 13 2023 17:29 utc | 219

As Mark Twain said at the World’s Columbian Exposition in Chicago in 1893, “the best thing a patriotic American could do today would be to march on Washington and hang all the lawyers (meaning politicians”). Only in the USA of 2023, that would likely see him arrested as an insurrectionist inciting terrorism and revolution.
Posted by: Hermit | Mar 13 2023 17:15 utc | 218
He also criticized bankers.
In today’s world, this would be evaluated by the ADL as crypto-anti-Semitism.
His account would also be banned for “inciting violence (against public officials)”.
Washington was a slave owner&raper who violated the Articles of Confederation and Perpetual Union to establish the outlaw country.

Posted by: Colin | Mar 13 2023 17:30 utc | 220

Norwegian @ 214
How dose the exsistene of the bio labs in Ukraine, fit into your thinking ? If the virus only existed on tv.

Posted by: Mark2 | Mar 13 2023 17:31 utc | 221

Posted by: drsmith | Mar 13 2023 17:29 utc | 222
The main immediate issue here is not mismanagement, but the inherent risk of banks in a rising interest rate environment. The leverage risk of private equity also plays a large role.
The underlying problem is the inefficiency of the capitalist financial system and the decline in long-term productivity growth.

Posted by: Colin | Mar 13 2023 17:33 utc | 222

“The vaccines are safe and effective”
“Rest assured that our banking system is safe,”

Posted by: Norwegian | Mar 13 2023 17:33 utc | 223

Norwegian @ 226
That’s convoluted logic.
Stretching reason way to far.

Posted by: Mark2 | Mar 13 2023 17:37 utc | 224

@Mark2 | Mar 13 2023 17:31 utc | 224

How dose the exsistene of the bio labs in Ukraine, fit into your thinking ? If the virus only existed on tv.

I told the truth, that’s all. Did someone say the bio labs in Ukraine did “covid”? There are other diseasees.
Here’s an old song from waaay before ‘covid’
They got bacteria to drop us where we stand
They got diseases still unknown to man
They got the virus and a microgram’s enough
To do in a continent

Porton Down

Posted by: Norwegian | Mar 13 2023 17:40 utc | 225

@Mark2 | Mar 13 2023 17:37 utc | 227
Falsus in uno, falsus in omnibus

Posted by: Norwegian | Mar 13 2023 17:43 utc | 226

Posted by: Norwegian | Mar 13 2023 17:33 utc | 226
Heh, but you forgot my all-time favourite: “Sub-prime is contained”.

Posted by: West of England Andy | Mar 13 2023 17:43 utc | 227

@West of England Andy | Mar 13 2023 17:43 utc | 230
Feel free to add it 🙂

Posted by: Norwegian | Mar 13 2023 17:44 utc | 228

I note we are both against the jabs,
That’s good commen ground.
I have problems regards your view on masks. Your freedom to not wear one, when common sence says it could be a
risk safety for you and people near
Isn’t that selfish.
For instance would you flatly refuse to wear a condom regardless of your partners wishes. I’m sure not.
Anyway I only ment to chip in with a couple of comments, this is past its sale by date. And detracts from the banking situation.
People near you aren’t even asked by you, or are they.

Posted by: Mark2 | Mar 13 2023 17:56 utc | 229

This may be of interest to some. These are the top institutional owners of SVB…
Name Shares % change
Vanguard Group Inc 6,657,712 -29.8%
BlackRock Inc. 4,764,351 -27.3%
State Street Corp 3,082,695 -31.4%
Alecta Pensionsforsakring, Omsesidigt 2,633,100 -25.1%
Jpmorgan Chase & Co 2,513,307 -31.6%
VTSMX – Vanguard Index Fund 1,796,212 -30.2%
Artisan Partners Limited 1,624,103 -21.2%
Morgan Stanley 1,540,231 -12.2%

Posted by: dh | Mar 13 2023 18:00 utc | 230

@Mark2 | Mar 13 2023 17:56 utc | 232
You would like to force me to wear a mask because you believe it?
Who is selfish?
You have to build on the objective truth, or else you will fail.
Yes we have some common ground. Let us build on that.

Posted by: Norwegian | Mar 13 2023 18:01 utc | 231

Norwegeian @ 234
So if your partner forced you to wear a condom, she’s being selfish ?

Posted by: Mark2 | Mar 13 2023 18:04 utc | 232

Hey, where did all the balloons and balloonacy go? Or, are they to be trotted at another inconvenient time?
I want my balloons back.

Posted by: Sakineh Bagoom | Mar 13 2023 18:09 utc | 233

@Mark2 | Mar 13 2023 18:04 utc | 235
Didn’t you just talk about convoluted logic?
that’s a non sequitur

Posted by: Norwegian | Mar 13 2023 18:11 utc | 234

Norwegian @ 238
Gotcha !
I was deliberatly mirroring your bank comparison.
Anyway Norwegian you pull your weight on this blog. Let’s agree to disagree and move on to more pressing issues.
Like The Economic world war 3 situation today.

Posted by: Mark2 | Mar 13 2023 18:22 utc | 235

I don’t think it’s a non sequitur to ask someone who clearly stated that SARS CoV-2 is imaginary whether he thinks that all the pathogens in the Ukrainian-American biolabs were also imaginary.
In other news, and in keeping with recent Hollywood-CIA collaboration tradition, “Navalny” won Best Documentary at last night’s Academy Awards (the Oscars). Previously the White Helmets had been given the same award.

Posted by: Tom_Q_Collins | Mar 13 2023 18:27 utc | 236

The only people I would “have” or “force” to wear a mask in public is those who are openly symptomatic, i.e., actively coughing and sneezing. Yes, I know that they’ve said all sorts of stuff about how one needn’t be symptomatic to spread COVID, but in my long memory, I’ve only ever caught a virus (cold or flu) from someone or multiple people in the near vicinity coughing or sneezing. Buses, airports, planes, and stores.

Posted by: Tom_Q_Collins | Mar 13 2023 18:29 utc | 237

Hey, where did all the balloons and balloonacy go? Or, are they to be trotted at another inconvenient time?
I want my balloons back.

Posted by: Sakineh Bagoom | Mar 13 2023 18:09 utc | 237
Sadly, I think balloonacy has gone away and is not returning. Even the Deep State must have heard the volume of global guffawing and ridicule; it certainly was a meme-rich environment!
There’s a rather more persistent kind of inflation making its presence felt these days…

Posted by: West of England Andy | Mar 13 2023 18:33 utc | 238

Today’s market summary: Everybody put on their cleanest dirty shirt.

Posted by: too scents | Mar 13 2023 19:24 utc | 239

Think this might be taken as good news in the ROW?
“During a hearing of the House Intelligence Committee last week, Director of National Intelligence Avril Haines expressed the need for intel agencies to focus more intensely on “diversity, equity, and inclusion.”

Posted by: SwissArmyMan | Mar 13 2023 19:36 utc | 240

All is not right with US Bank support today
USA Sovereign Credit Risk Hits Record High As Interbank Funding Stress Explodes
Tomorrow?? Who knows 😉

Posted by: questions questions | Mar 13 2023 19:39 utc | 241

https://news.yahoo.com/navalny-wins-oscar-director-daniel-014245880.html

Daniel Roher just knocked Putin off his high horse, dedicating his Oscar to political prisoners around the world.
On Sunday night, after winning the Oscar for documentary feature for “Navalny,” director Daniel Roher used his acceptance speech to blast Russian President Vladimir Putin: “And there’s one person who couldn’t be here with us here tonight … Alexei Navalny, the leader of the Russian opposition, remains in solitary confinement for what he calls ‘Vladimir Putin’s unjust war of aggression in Ukraine.’
“Alexei, the world has not forgotten your vital message to us all. We cannot, we must not be afraid to oppose dictators and authoritarianism. Wherever it rears its head,” Roher said at this year’s 95th Academy Awards, which Jimmy Kimmel hosted live from Hollywood’s Dolby Theatre.
Yulia Navalnaya, Navalny’s wife, who also is featured in the documentary, attended the Oscars in her husband’s place, along with their children, Dasha and Zahar. She joined Roher onstage and gave an emotional speech.
“My husband is in prison, just for telling the truth. My husband is in prison, just for defending democracy,” she said. “Alexei, I am dreaming of the day when you will be free, and our country will be free. Stay strong, my love.”
The Times caught up with Roher before the ceremony and he shared that he never could have anticipated the timeliness of “Navalny.”
“We thought that our film was prescient to begin with but we never could have imagined how significant and timely our film would be. I think our film is a precursor in a way to this brutal war [in Ukraine.]”
“As a filmmaker it’s the distinguished honor of my life [to be nominated], but I’m not just here as a regular filmmaker, I’m here as the sort of brand ambassador of Alexei Navalny,” Roher continued. “I’m here because Alexei Navalny right now is languishing in a gulag six and a half hours outside of Moscow and I want to remind the world that he is there, remind the world that a brighter future for Russia is possible, and as Navalny asks his supporters: You have to have hope. Because if you don’t have hope, then your future is guaranteed to be bleak and dark.”
Other nominees for documentary feature on Sunday included “All the Beauty and the Bloodshed,” “All That Breathes,” “Fire of Love” and “A House Made of Splinters.”
“Navalny” chronicles the investigation into the near-fatal poisoning of Russian opposition leader Alexei Navalny. The lawyer and activist was vocal about the Kremlin’s corruption, wouldn’t give up the fight for democratic reform, and was poised and ready to challenge Putin for the Russian presidency.
In August 2020, Navalny was poisoned by a Novichok nerve agent during a hotel stay. The documentary was filmed while he recovered in Berlin.
Navalny suspected the Kremlin was responsible for the poisoning that nearly killed him, and he, Bulgarian journalist Christo Grozev and Russian activist Maria Pevchikh set out to prove it through a series of investigations depicted in the film. [blah blah blah blah…..continues]

No interest in Julian Assange though, who also languishes in extra-legal limbo and terrible prison conditions.

Posted by: Tom_Q_Collins | Mar 13 2023 19:44 utc | 242

Wall Street On Parade is the source of the link below
Silicon Valley Bank Was a Wall Street IPO Pipeline in Drag as a Federally-Insured Bank; FHLB of San Francisco Was Quietly Bailing It Out
The quote

Adding further insult to U.S. taxpayers, the Federal Home Loan Bank of San Francisco was quietly bailing out SVB throughout much of last year. Federal Home Loan Banks are also not supposed to be in the business of bailing out venture capitalists or private equity titans. Their job is to provide loans to banks to promote mortgages to individuals and loans to promote affordable housing and community development.
According to SEC filings by the Federal Home Loan Bank of San Francisco, its loan advances to SVB went from zero at the end of 2021 to a whopping $15 billion on December 31, 2022. The SEC filing provides a graph showing that SVB was its largest borrower at year end, with outstanding advances representing 17 percent of all loans made by the FHLB of San Francisco.

Posted by: psychohistorian | Mar 13 2023 19:52 utc | 243

It’s been a wild ride today in the Markets since the Bank failures over the weekend but the US looks to close pretty flat, up slightly.

Posted by: SwissArmyMan | Mar 13 2023 19:53 utc | 244

looks to close pretty flat
Posted by: SwissArmyMan | Mar 13 2023 19:53 utc | 248

Look at the breadth.

Posted by: too scents | Mar 13 2023 19:56 utc | 245

@248 Some brave souls probably see today as an opportunity. Personally I’m staying out of the stock market until the Ukraine mess is sorted out.

Posted by: dh | Mar 13 2023 20:03 utc | 246

It’s gone ominously quite here,
Nothing to be concerned about.
Or stunned silence, I wonder.
Anyway hows the sanctions against Russia going along for the US economy ?

Posted by: Mark2 | Mar 13 2023 20:05 utc | 247

As usual, it comes down to greed and stupidity of management not really understanding the risks they are taking on.
Gee, what a surprise – another company destroyed by poor management. Captain Renault will be shocked!
Posted by: drsmith | Mar 13 2023 17:29 utc | 223
Have you seen who was head of risk management at SVP? First, nobody for 8 months. Then a woke, queer, poc,female who seems to have been too busy supporting various lgbtq events & projects to actually do any risk management.
Depositors had to be bailed out so small & medium companies could make payroll. Also so Pelosi wouldn’t take out a contract on Powell.
Good news is investors lost, sr mgmt fired, wef lost its contractor.

Posted by: Mary | Mar 13 2023 20:13 utc | 248

Posted by: too scents | Mar 13 2023 19:56 utc | 249
Tremendous effort was expelled to achieve a flat close, the week is only getting started.

Posted by: SwissArmyMan | Mar 13 2023 20:13 utc | 249

For instance would you flatly refuse to wear a condom regardless of your partners wishes. I’m sure not.
Posted by: Mark2

More appropriate would be:
Would you wear a condom when going to the theater to protect people around you?

Posted by: Vajezatha | Mar 13 2023 20:20 utc | 250

Tremendous effort was expelled to achieve a flat close, the week is only getting started

Posted by: SwissArmyMan | Mar 13 2023 20:13 utc | 253
There were lots of tickers on the NasdaqTrader link posted earlier by @too scents that halted, resumed and then halted again, sometimes within a couple of minutes of resumption looking at the timestamps.
Abundant application of porcine lipstick. I can see some ‘limit downs’ at the US opening bell tomorrow. I also expect continuing turbulence once Asian markets reopen (later tonight in my time zone).

Posted by: West of England Andy | Mar 13 2023 20:38 utc | 251

@255 Fascinating to watch. Billions changing hands and nobody has a clue what’s next.

Posted by: dh | Mar 13 2023 21:00 utc | 252

And now there’s this:

The Federal Reserve Board on Monday announced that Vice Chair for Supervision Michael S. Barr is leading a review of the supervision and regulation of Silicon Valley Bank, in light of its failure. The review will be publicly released by May 1.
“The events surrounding Silicon Valley Bank demand a thorough, transparent, and swift review by the Federal Reserve,” said Chair Jerome H. Powell.
“We need to have humility, and conduct a careful and thorough review of how we supervised and regulated this firm, and what we should learn from this experience,” said Vice Chair Barr.

https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230313a.htm
In related news: fox to conduct review into pile of blood-stained feathers in hen house…

Posted by: West of England Andy | Mar 13 2023 21:07 utc | 253

According to the BBC News Website this evening :
“China “represents a challenge to the world order” which the UK must take seriously, Rishi Sunak has said.”
You don’t say Rishi.
That guy’s a great crystal-ball gazer.

Posted by: Engineer-John | Mar 13 2023 21:09 utc | 254

An Irishman walks into a bank of SVB rubble:
https://www.youtube.com/watch?v=GdfYnqyu7v8
Patrick Boyle starts off with a useful and incisive analysis and then whips the shillelagh out – and the floggings begin
:))
Its worth the 26 minutes for a good laugh and a wise peek.

Posted by: uncle tungsten | Mar 13 2023 21:13 utc | 255

I woke up to see if the illegal occupier of Palestine had added Jordan to its portfolio. Alas not today. I guess it wont be too much longer.
Something big will test if not fracture the developing Arab/Iran unity. Maybe an occasional assassination or maybe sniffy will pull out a Trump card and fry a senior Iranian security officer in UAE or some such.
Be prepared.

Posted by: uncle tungsten | Mar 13 2023 21:35 utc | 256

Vajezatha #254

More appropriate would be:
Would you wear a condom when going to the theater to protect people around you?

:)) the drinks are on me. What good rejoinder.
Next time I want to mock mask wearing I might fasten a condom on it as I step onto the bus.

Posted by: uncle tungsten | Mar 13 2023 21:39 utc | 257

Posted by: uncle tungsten | Mar 13 2023 21:35 utc | 261
The Saudis have their own version of the ‘Sampson Option’ though. All they have to say is “We will no longer accept US$ as payment for our oil”. They don’t even have to enforce this, all they need to do is announce it and watch the global market reactions.
As we have seen in recent days, such is the speed of financial communication the US would not have time to react politically or militarily to such an announcement before the turmoil overwhelmed it.
They can try regime change shenanigans at their own peril.

Posted by: West of England Andy | Mar 13 2023 21:44 utc | 258

Mary #252

Have you seen who was head of risk management at SVP? First, nobody for 8 months. Then a woke, queer, poc,female who seems to have been too busy supporting various lgbtq events & projects to actually do any risk management.
Depositors had to be bailed out so small & medium companies could make payroll. Also so Pelosi wouldn’t take out a contract on Powell.

:))
Whats this “female” business? How can you know that for sure? Does it even have a reliable and consistent pronoun?
ut I do like that and can you give us all a link to source.
The Pelosi line is a hoot and likely right on. Drinks at the bar on me.

Posted by: uncle tungsten | Mar 13 2023 21:48 utc | 259

Norwegian #227
“The vaccines are safe and effective”
“Rest assured that our banking system is safe,”
Western Democracy is safe for human consumption
US bases keep our country safe
US dollars are the safest currency
USAID will keep democracy safe
….
Have a safe day comrade 😉

Posted by: uncle tungsten | Mar 13 2023 21:54 utc | 260

The useless USSA corporate medium to large banks addicted to speculative lending creating the illusion of elusive high risk profits.Due to the trillion air dollars lost on all bad credit cards issued. Are all on the verge of total banking implosion.
Who knew that both Russian and Chinese gold and cash was the basic foundation for all USSA BANKS! lol

Posted by: Bad Deal Motors On | Mar 13 2023 22:02 utc | 261

Michael Hudson has chimed in; unfortunately the only link I can find is to Zed Aitch, which gets caught by some filter or blacklist, so here is a copypaste:

Hudson: Why The Banking System Is Breaking Up
The collapses of Silvergate and Silicon Valley Bank are like icebergs calving off from the Antarctic glacier. The financial analogy to the global warming causing this collapse of supporting shelving is the rising temperature of interest rates, which spiked last Thursday and Friday to close at 4.60 percent for the U.S. Treasury’s two-year bonds. Bank depositors meanwhile were still being paid only 0.2 percent on their deposits. That has led to a steady withdrawal of funds from banks – and a corresponding decline in commercial bank balances with the Federal Reserve.
Most media reports reflect a prayer that the bank runs will be localized, as if there is no context or environmental cause. There is general embarrassment to explain how the breakup of banks that is now gaining momentum is the result of the way that the Obama Administration bailed out the banks in 2008 with fifteen years of Quantitative Easing to re-inflate prices for packaged bank mortgages – and with them, housing prices, along with stock and bond prices.
The Fed’s $9 trillion of QE (not counted as part of the budget deficit) fueled an asset-price inflation that made trillions of dollars for holders of financial assets – the One Percent with a generous spillover effect for the remaining members of the top Ten Percent. The cost of home ownership soared by capitalizing mortgages at falling interest rates into more highly debt-leveraged property. The U.S. economy experienced the largest bond-market boom in history as interest rates fell below 1 percent. The economy polarized between the creditor positive-net-worth class and the rest of the economy – whose analogy to environmental pollution and global warming was debt pollution.
But in serving the banks and the financial ownership class, the Fed painted itself into a corner: What would happen if and when interest rates finally rose?
In Killing the Host I wrote about what seemed obvious enough. Rising interest rates cause the prices of bonds already issued to fall – along with real estate and stock prices. That is what has been happening under the Fed’s fight against “inflation,” its euphemism for opposing rising employment and wage levels. Prices are plunging for bonds, and also for the capitalized value of packaged mortgages and other securities in which banks hold their assets on their balance sheet to back their deposits.
The result threatens to push down bank assets below their deposit liabilities, wiping out their net worth – their stockholder equity. This is what was threatened in 2008. It is what occurred in a more extreme way with S&Ls and savings banks in the 1980s, leading to their demise. These “financial intermediaries” did not create credit as commercial banks can do, but lent deposits out in the form of long-term mortgages at fixed interest rates, often for 30 years. But in the wake of the Volcker spike in interest rates that inaugurated the 1980s, the overall level of interest rates remained higher than the interest rates that S&Ls and savings banks were receiving. Depositors began to withdraw their money to get higher returns elsewhere, because S&Ls and savings banks could not pay higher their depositors higher rates out of the revenue coming in from their mortgages fixed at lower rates. So even without fraud Keating-style, the mismatch between short-term liabilities and long-term interest rates ended their business plan.
The S&Ls owed money to depositors short-term, but were locked into long-term assets at falling prices. Of course, S&L mortgages were much longer-term than was the case for commercial banks. But the effect of rising interest rates has the same effect on bank assets that it has on all financial assets. Just as the QE interest-rate decline aimed to bolster the banks, its reversal today must have the opposite effect. And if banks have made bad derivatives trades, they’re in trouble.
Any bank has a problem of keeping its asset valuations higher than its deposit liabilities. When the Fed raises interest rates sharply enough to crash bond prices, the banking system’s asset structure weakens. That is the corner into which the Fed has painted the economy by QE.
The Fed recognizes this inherent problem, of course. That is why it avoided raising interest rates for so long – until the wage-earning bottom 99 Percent began to benefit by the recovery in employment. When wages began to recover, the Fed could not resist fighting the usual class war against labor. But in doing so, its policy has turned into a war against the banking system as well.
Silvergate was the first to go, but it was a special case. It had sought to ride the cryptocurrency wave by serving as a bank for various currencies. After SBF’s vast fraud was exposed, there was a run on cryptocurrencies. Investor/gamblers jumped ship. The crypto-managers had to pay by drawing down the deposits they had at Silvergate. It went under.
Silvergate’s failure destroyed the great illusion of cryptocurrency deposits. The popular impression was that crypto provided an alternative to commercial banks and “fiat currency.” But what could crypto funds invest in to back their coin purchases, if not bank deposits and government securities or private stocks and bonds? What is crypto, ultimately, if not simply a mutual fund with secrecy of ownership to protect money launderers?
Silicon Valley Bank also is in many ways a special case, given its specialized lending to IT startups. New Republic bank also has suffered a run, and it too is specialized, lending to wealthy depositors in the San Francisco and northern California area. But a bank run was being talked up last week, and financial markets were shaken up as bond prices declined when Fed Chairman Jerome Powell announced that he actually planned to raise interest rates even more than he earlier had targeted, in view of the rising employment making wage earners more uppity in their demands to at least keep up with the inflation caused by the U.S. sanctions against Russian energy and food and the actions by monopolies to raise prices “to anticipate the coming inflation.” Wages have not kept pace with the resulting high inflation rates.
It looks like Silicon Valley Bank will have to liquidate its securities at a loss. Probably it will be taken over by a larger bank, but the entire financial system is being squeezed. Reuters reported on Friday that bank reserves at the Fed were plunging. That hardly is surprising, as banks are paying about 0.2 percent on deposits, while depositors can withdraw their money to buy two-year U.S. Treasury notes yielding 3.8 or almost 4 percent. No wonder well-to-do investors are running from the banks.
The obvious question is why the Fed doesn’t simply bail out banks in SVB’s position. The answer is that the lower prices for financial assets looks like the New Normal. For banks with negative equity, how can solvency be resolved without sharply reducing interest rates to restore the 15-year Zero Interest-Rate Policy (ZIRP)?
There is an even larger elephant in the room: derivatives. Volatility increased last Thursday and Friday. The turmoil has reached vast magnitudes beyond what characterized the 2008 crash of AIG and other speculators. Today, JP Morgan Chase and other New York banks have tens of trillions of dollar valuations of derivatives – casino bets on which way interest rates, bond prices, stock prices and other measures will change.
For every winning guess, there is a loser. When trillions of dollars are bet on, some bank trader is bound to wind up with a loss that can easily wipe out the bank’s entire net equity.
There is now a flight to “cash,” to a safe haven – something even better than cash: U.S. Treasury securities. Despite the talk of Republicans refusing to raise the debt ceiling, the Treasury can always print the money to pay its bondholders. It looks like the Treasury will become the new depository of choice for those who have the financial resources. Bank deposits will fall. And with them, bank holdings of reserves at the Fed.
So far, the stock market has resisted following the plunge in bond prices. My guess is that we will now see the Great Unwinding of the great Fictitious Capital boom of 2008-2015. So the chickens are coming hope to roost – with the “chicken” being, perhaps, the elephantine overhang of derivatives fueled by the post-2008 loosening of financial regulation and risk analysis.

Derivatives, indeed. Counterparty risk (bitchezz!)…

Posted by: West of England Andy | Mar 13 2023 22:52 utc | 262

John Helmer’s latest on CGTN interview of Seymour Hersh reveals further contradictions in his Nord Stream story…
The Middle Kingdom Makes A Point About the Mediocrity of the Exceptionalist
https://johnhelmer.net/the-middle-kingdom-makes-a-point-about-the-mediocrity-of-the-exceptionalist/
“…For the first time since Hersh’s earlier interviews with American, British, German and Russian reporters, Hersh faced skepticism and cross-examination of the account he published on February 8 of what he claimed then, and insists still, was a joint US and Norwegian operation to destroy the Nord Stream pipelines on Sept.26, 2022…”

Posted by: John Gilberts | Mar 13 2023 23:07 utc | 263

More on SVB fallout: https://bad-faith-times.ghost.io/one-weird-trick-to-turn-libertarians-into-socialists/

Fascist puppet master Peter Thiel last week helped trigger a run on Silicon Valley Bank that now threatens the foundation of the global economy, and every time I log on to Twitter for updates on the cascading effects of Thiel’s highly suspicious actions, tech bros sound less like Ayn Rand acolytes and more like hardened socialists.
Silicon Valley Bank, known as a backbone of the startup economy, was seized by the government last week after a bunch of rich dudes followed Thiel’s lead and took all their money out of the bank. These Silicon Valley cretins, usually trumpeting the importance of personal responsibility and preaching the embarrassingly childish tenets of libertarianism, flocked to social media to beg Big Daddy Jerome Powell and Janet Yellen and Joe Biden to step in and save them.
That’s right, folks. With their money vanishing before their very eyes, these tech bros experienced an exorcism of sorts: All the libertarianism had instantly left their bodies. In its place came a flood of Marxist economic theory, wherein the government is there for those in need. I’m sure these folks will one day be possessed again by libertarianism, questioning child labor laws and the age of consent – things of that nature – but for now, they are blood-red communists.
Welcome tech bros. I’m glad you’ve seen the light, however temporarily.
It’s the same old story every time the death throes of late capitalism belch up a crisis or potential meltdown: The mega-rich, after extolling the virtues of pulling oneself up by one’s bootstraps, beg and plead with federal regulators and lawmakers to save their money when the shit goes down. They bribe congressional lawmakers to undo critically important regulations – as Silicon Valley Bank did during the Trump administration – then cry alligator tears when the lack of those very regulations leads to disaster.
Muh money, they bawl, save muh money!
This phenomenon helped radicalize an entire generation of American voters against capitalism (check out recent polling around young people’s views of capitalism and socialism). Young folks in 2008 and 2009 saw the economic system crack wide open, the flames of hell licking at the heels of everyone on earth thanks to housing market deregulation, and instead of the ultra-wealthy suffering the consequences of their actions, they were bailed out and often enriched by the federal government, which, of course, they own. Meanwhile, regular folks who had been tricked into subprime loans and other highly risky products were left high and dry and broke as hell. It was the socialist thought leader Martin Luther King, Jr. who said, “This country has socialism for the rich, rugged individualism for the poor.”
The economic meltdown that defined the final months of the nightmarish George W. Bush presidency pushed me from a fairly standard liberalism into the loving arms of socialism. I went from reading Paul Krugman to Karl Marx. Turns out those two want(ed) very different things for society.
Just as there is no point in engaging the right wing’s bad faith politics, there is no point in engaging an economic system that was designed only to save the skin of those at the very top while the rest of us struggle merely to survive. The idea that capitalism can be reformed or made kinder and gentler is a sledgehammer of bad faith straight to the trachea. There is no reforming an anti-human system like capitalism, no matter what Elizabeth Warren says. We can only oppose it, and urge others to see the dangerous and inhumane contradictions within capitalism so that they too will reject it.
(Which brings me to a quick aside on the hysterical Republican concept of “woke capital,” or financial institutions catering to customers’ culturally liberal urges in order to take more of their money and control more of their lives. A bank ad featuring a gay couple saving for retirement or a person of indeterminate gender using a credit card does not make the institution “woke” – the American rights’ newest and most prominent racist dog whistle. Capital will do whatever it takes to expand. That is its nature: To grow at any cost, to adapt and spread and expand by any means necessary. Think of it like a virus and it might make more sense to you. If a virus had to pretend to be culturally liberal in order to spread from one person to another or one county or state or country to another, the virus would suddenly become the most woke entity on earth. The virus would start talking up reparations. “Woke capital” is nothing more than multibillion dollar corporations appealing to well-adjusted people who don’t spend 11 hours a day thinking about Hunter Biden’s laptop and buying Elon Musk collectable plates.)
Millionaire venture capitalists – a cancer on the human race – have taken to social media since the seizure of Silicon Valley Bank to hold up workaday Americans as human shields against criticism of their libertarian dreams turned nightmare. They’ll tell you everyday working people in middle America will be affected by the bank’s meltdown and subsequent dominoes that fall as a result of deregulating a system that can’t be trusted to run itself. Why, the tech bros ask, would you take delight in mom and pop businesses suffering? While it’s true that working folks will be fucked by the bank’s seizure – as we are in every disaster created by the rich – I’m begging Valley bros to stop their bad faith. They couldn’t give a shit about the suffering of working families. Stop pretending you care about anything but your own cash money. It’s insulting.
It’s apparent by their online reaction that the tech bros are blissfully unaware that everyone hates them and wants them to fail spectacularly.
[…continues…]

Posted by: Tom_Q_Collins | Mar 13 2023 23:15 utc | 264

West of England Andy @267 quoted Michael Hudson “That has led to a steady withdrawal of funds from banks”
______________________________________________________________
Mr Hudson and Mr West of England are just babbling nonsense.
The only way to withdraw funds from the US banking system is to take it as currency. Currency is those federal reserve notes with pictures of dead presidents on the front that you can put in your pocket or purse. Moving funds from one bank to another bank is not “withdrawal of funds from banks” no matter what Mr Hudson thinks it is. Its just moving money from one bank to another.
Here is a graph showing the rate that people took money out of banks in the last 35 years. In most cases when people take a lot of money out of banks soon after they deposit it back into banks. For example there was a rush to take money out of banks at the end of 1999 because of the Y2K scare. Then a few months later when Y2K turned into a nothing burger the cash flowed back into the banks. Then after the 2008 financial debacle again people rushed to banks withdrew cash and then again not much later a lot of that cash was deposited back into banks. But look at what happened from March 2020 until the end of 2021. That is what a real run on the banks looks like. That was a historic “withdrawal of funds from banks”.
The biggest run on the banks since the Great Depression happened a little more than a year ago and Mr Hudson was so self absorbed with his nonsense he didn’t even notice it.

Posted by: jinn | Mar 14 2023 0:42 utc | 265

jinn @270 Another problem you may have if you start withdrawing large amounts of cash you are likely to have to explain to the bank manager what it’s for. Mexican cartels can probably help you hide it or you can dig a hole in the back garden.

Posted by: dh | Mar 14 2023 0:57 utc | 266

I woke up to see if the illegal occupier of Palestine had added Jordan to its portfolio. Alas not today. I guess it wont be too much longer.
Something big will test if not fracture the developing Arab/Iran unity. Maybe an occasional assassination or maybe sniffy will pull out a Trump card and fry a senior Iranian security officer in UAE or some such.
Be prepared.
Posted by: uncle tungsten | Mar 13 2023 21:35 utc | 261

Wouldn’t be worth the trouble. Jordan has been a strikingly reliable servant of US-Israeli interests since 1994, and arguably since the Camp David agreement as well.

Posted by: malenkov | Mar 14 2023 1:02 utc | 267

Ellen Brown has posted her 2nd in a series about the financial situation…her latest posting is titled
The Looming Quadrillion Dollar Derivatives Tsunami
The quote

The FDIC, Federal Reserve and U.S. Treasury have now agreed on an interim fix that will the subject of another article. Meanwhile, this column focuses on derivatives and is a followup to my Feb. 23 column on the “bail in” provisions of the 2010 Dodd Frank Act, which eliminated taxpayer bailouts by requiring insolvent SIFIs to recapitalize themselves with the funds of their creditors. “Creditors” are defined to include depositors, but deposits under $250,000 are protected by FDIC insurance. However, the FDIC fund is sufficient to cover only about 2% of the $9.6 trillion in U.S. insured deposits. A nationwide crisis triggering bank runs across the country, as happened in the early 1930s, would wipe out the fund. Today, some financial pundits are predicting a crisis of that magnitude in the quadrillion dollar-plus derivatives market, due to rapidly rising interest rates. This column looks at how likely that is and what can be done either to prevent it or dodge out of the way.

Read the posting

Posted by: psychohistorian | Mar 14 2023 1:03 utc | 268

To add to my Ellen Brown posting above another quote

The shadow banks needed their own variant of “demandable debt,” and they got it through the privilege of “super-priority” in bankruptcy. Perotti wrote:


Safe harbor status grants the privilege of being excluded from mandatory stay, and basically all other restrictions. Safe harbor lenders, which at present include repos and derivative margins, can immediately repossess and resell pledged collateral.
This gives repos and derivatives extraordinary super-priority over all other claims, including tax and wage claims, deposits, real secured credit and insurance claims. [Emphasis added.]

Posted by: psychohistorian | Mar 14 2023 1:12 utc | 269

Two more paragraphs from the Ellen Brown piece linked to above

Certainly, for our local government deposits, public banks are an important solution. State and local governments typically have far more than $250,000 deposited in SIFI banks, but local legislators consider them protected because they are “collateralized.” In California, for example, banks taking state deposits must back them with collateral equal to 110% of the deposits themselves. The problem is that derivative and repo claimants with “supra-priority” can wipe out the entirety of a bankrupt bank’s collateral before other “secured” depositors have access to it.
……….
The current financial system is fragile, volatile and vulnerable to systemic shocks. It is due for a reset, but we need to ensure that the system is changed in a way that works for the people whose labor and credit support it. Our hard-earned deposits are now the banks’ only source of cheap liquidity. We can leverage that power by collaborating in a way that serves the public interest.

Posted by: psychohistorian | Mar 14 2023 1:21 utc | 270

Norwegian @215. Wholeheartedly agree. The whole thing was a WEF operation to kickstart the NWO. As the CEO of a major pharmaceutical in Alberta said openly at a Conference, “It is the biggest scam that has ever been pulled on humanity”.
It was a triumph of mass hysteria and psychological terror over a country’s citizens. What is a verifiable fact though is that deaths as a result of the jabs ate into their millions worldwide now.

Posted by: Jo Dominich | Mar 14 2023 2:20 utc | 271

psychohistorian @273-5–
Thanks for posting those excerpts. Safe Harbor needs to/must be drowned.

Posted by: karlof1 | Mar 14 2023 2:31 utc | 272

But how do we know the banks won’t use this bailout for drugs?

Posted by: Irish | Mar 14 2023 2:40 utc | 273

Mark Cuban: Bailout Silicon Valley Bank Feds: Approved
Lloyd Blankfein: Goldman Sachs needs $824 billion Feds: Approved
Jamie Dimon: JPMorganChase needs $416 billion Feds: Approved
Average Joe: My wife got cancer. Can we get Medicare? Feds: We’re broke.
A political system where corporations own most of the mass media, where billionaires buy politicians, and where private-interest lobbyists shape legislation cannot legitimately be described as democratic. Call it what you want, but “democracy” isn’t it. -Jason Hickel
The vulture capitalists who call canceling student debt a dangerous socialist experiment are now begging for a bailout for Silicon Valley Bank after spending millions lobbying to deregulate it. Dr. King was right. We have socialism for the rich, rugged capitalism for the rest.
What is the state, after all, but an insurance fund for the capitalist class?

Posted by: Irish | Mar 14 2023 2:41 utc | 274

@Posted by: Tom_Q_Collins | Mar 13 2023 23:15 utc | 269
So true, there is a great book by Mariana Mazzucato, “The Entrepreneurial State” that lays bare the lies of the VC folks. Basically, the state makes the most risky investments and only when they have been shown to pay off do the VC vultures come down to scrape up all the benefits, with the help of the state (e.g. the sate giving the patents to the scientists and VCs rather than owning them themselves). Then the VCs plead for lower taxers because they are “risk takers”, no they are excavators of the states (i.e. the people’s) property and then want to pay as little into that state as possible. Socialism for the rich, capitalism for the poor.
She has another great book “The Value of Everything: Making and Taking in the Global Economy”, which “rigorously scrutinizes the way in which economic value has been accounted and reveals how economic theory has failed to clearly delineate the difference between value creation and value extraction. Mariana Mazzucato argues that the increasingly blurry distinction between the two categories has allowed certain actors in the economy to portray themselves as value creators, while in reality they are just moving around existing value or, even worse, destroying it.”
More of my own chapter on China, on its energy policyChina: The Drivers of Current Energy Policy

Posted by: Roger | Mar 14 2023 3:07 utc | 275

In response to

psychohistorian @273-5–
Thanks for posting those excerpts. Safe Harbor needs to/must be drowned.
Posted by: karlof1 | Mar 14 2023 2:31 utc | 277

Thanks for the follow up.
IMO, the whole structure is bad because of the profit motive base instead of public benefit base where any profit is used to the publics benefit as well instead of the God Of Mammon cult and close followers.
In a totally sovereign nation approach the safe harbor is the global central “bank” of the associated nations.
In what we have now the private folks have designed and bought politicians to build a hen house where all the chickens are plucked with narry a peep…because they are doing God’s work….or is that the devil’s work?…ask Pope Frank and his religion of usury approval.

Posted by: psychohistorian | Mar 14 2023 3:14 utc | 276

@Posted by: psychohistorian | Mar 14 2023 1:12 utc | 274

Safe harbor status grants the privilege of being excluded from mandatory stay, and basically all other restrictions. Safe harbor lenders, which at present include repos and derivative margins, can immediately repossess and resell pledged collateral.
This gives repos and derivatives extraordinary super-priority over all other claims, including tax and wage claims, deposits, real secured credit and insurance claims.

The fundamental problem is that retail deposit taking institutions are allowed to be market makers in derivative contracts, where they use the high credit ratings gained from being a deposit bank to act as a counterparty and market-maker (i.e. intermediary). Either this should not be allowed or all deposits should have a higher call in bankruptcy. Of course what we get is whats best for the financiers, they get to ride off the retail deposits while putting them at risk through derivative trading and intermediary activities with counterparties that have a higher claim than the depositors. The result will be bail ins where depositors take hair cuts while derivative counterparties get 100% on the dollar.
When the Fed bailed out AIG in 2008 it was really to bad out the credit derivative counterparties, including Goldman Sachs to the of $13 billion – without which GS would have gone bankrupt. Instead it got a bailout and access to the Fed window as a deposit taking institution.

Posted by: Roger | Mar 14 2023 3:27 utc | 277

@Posted by: Irish | Mar 14 2023 2:41 utc | 279

What is the state, after all, but an insurance fund for the capitalist class?

Wolin said it all in the book “Inverted Totalitarianism”. Democracy Incorporated: Managed Democracy and the Specter of Inverted Totalitarianism
A good Chris Hedges interview with him: https://www.youtube.com/watch?v=LGc8DMHMyi8

Posted by: Roger | Mar 14 2023 3:34 utc | 278

Basically, the state makes the most risky investments
Posted by: Roger | Mar 14 2023 3:07 utc | 280
Like enabling housing for poor people, because you win socialists votes?

Posted by: Vikichka | Mar 14 2023 4:16 utc | 279

@261 uncle tungsten | Mar 13 2023 21:35 utc
The illegal occupier of Palestine has plenty big problems on its plate. I didn’t know this, but according to Nasrallah, organizations have already formed in Israel dedicated to the issue of emigrating out of the country, as a potential diaspora looms. And of course, they no longer have the dream of Crimea to flee to, so it’ll be the US.
Good update on Israel from Nasrallah that I think you will enjoy:
Nasrallah: Israel can be destroyed within 5 years
And that title is not Nasrallah’s idea, it’s Israel’s. The Jewish entity in its two earlier existences in history never lasted until its 80th birthday. Contemporary Israel is now 75 years old, and the national culture has this huge hex on its psyche that contemplates never reaching 80.
And of course Nasrallah speaks of the Resistance that has all the power needed to end the occupation…just waiting for the moment to arise, one surmises.
Very interesting.

Posted by: Grieved | Mar 14 2023 4:41 utc | 280

@273 psychohistorian | Mar 14 2023 1:03 utc
Ah, thank you for that heads-up. I read her first part finally only this weekend, and hungered for Part 2 – and she’s not a bookmark I visit every day (priceless though she is).
Now off to read it.

Posted by: Grieved | Mar 14 2023 4:45 utc | 281

@Posted by: Vikichka | Mar 14 2023 4:16 utc | 284

Like enabling housing for poor people, because you win socialists votes?

God forbid the government actually does something for poor people! Actually Singapore, a very capitalist society builds a lot of government housing to keep housing costs down. Exactly what Michael Hudson proposes successful economies need, keep the basic costs of living down to make it much easier to produce things – i.e. extinct the rentiers. Government healthcare extincts the monopolists and rentiers in that industry in most countries, except the US which spends about double the money for much worse outcomes – driving up costs for employers.
The US government pours massive amounts of money into drug research, from which the pharmaceutical industry greatly benefits in making its profits. The technology for fracking was developed with government money, also the internet, microchips in the 1950s and 60s, etc. etc. The majority ofUS technology research in the post-WW2 period was funded by the US government. The government built the highway network after WW2, I can go on and on. Those cheap loans that Tesla needed early on, plus all the EV subsidies to support the market. The US growth rate in the 1950s and 1960s which had very high marginal tax rates for the rich and a completely muzzled finance sector were much higher than today, and the gains shared much more equally.
We need productive capitalism, where we have real market competition not the monopoly, oligopoly and monopsony which dominates the US economy, and where rentiers are treated like the unwelcome scum that they are. Produce real benefit for society, you get to make a profit, just try to extract value then no profit for you. The current US financial system is predominantly extractive, especially private equity.

Posted by: Roger | Mar 14 2023 4:49 utc | 282

What is the state, after all, but an insurance fund for the capitalist class?
Posted by: Irish | Mar 14 2023 2:41 utc | 279
Aren’t the capitalists the most vocal opponents of the state and the socialists the most vocal supporters of the state? Aren’t the capitalists the people who want a free market? Republican voters, especially libertarians, constantly say how the state should stay out as the state is neither efficient nor rational. It is the socialists who want more government and no free market.

Posted by: Vikichka | Mar 14 2023 4:51 utc | 283

@Posted by: Vikichka | Mar 14 2023 4:51 utc | 288
What fantasy world do you live in? Even Adam Smith railed against the nasty games of capitalists to restrict markets and gain unfair advantage. The capitalist wants to be able to control the market for hs own greater profit, and controlling the state is part of that. Capitalists love the state the protects their property, limits the ability of labour to challenge them, and facilitates their profit making. The last thing capitalists wants is a real functioning market as in the text books and Milton Friedman’s vivid imagination. The capitalist made out like bandits from fascism as well, as it kept the workers under tight control and facilitated their profit making, including from government contracts.
The capitalists only complain when the state doesn’t serve them, progressive taxation, support for workers, regulations, actions against monopolies etc. Protection of their property, extensions of their rights of property (e.g. forever extending patent and copyrights), bailouts when they mess up, massive subsidies hidden as the “defence” budget, other massive subsidies, screwing over foreign governments that get in their way … they can’t get enough of that.
Libertarians are simplistic children who do not understand how an actual large scale society actually functions, which makes them useful idiots for the capitalists.

Posted by: Roger | Mar 14 2023 5:07 utc | 284

@ Vikichka | Mar 14 2023 4:51 utc | 288 who believes the myth of “free markets” and capitalism.
I think Roger’s calling you a Libertarian is probably accurate and agree with his characterization of that form of exceptionalism which your ignorance exhibits.

Posted by: psychohistorian | Mar 14 2023 5:15 utc | 285

Reuters has the quote below as the start of a current posting

March 14 (Reuters) – Shockwaves from the collapse of Silicon Valley Bank (SIVB.O) pounded global bank stocks further on Tuesday as assurances from President Joe Biden and other policymakers did little to calm markets and prompted a rethink on the interest rate outlook.

Posted by: psychohistorian | Mar 14 2023 5:18 utc | 286

What fantasy world do you live in?
Posted by: Roger | Mar 14 2023 5:07 utc | 289
Oh the irony. Wake up, Roger, WAKE UP!

Posted by: Vikichka | Mar 14 2023 5:23 utc | 287

Posted by: psychohistorian | Mar 14 2023 5:15 utc | 290
Oh wow. That hurt. And I thought we could be friends.

Posted by: Vikichka | Mar 14 2023 5:25 utc | 288

Socialist: we want more government and collectivism.
Libertarian: we want less government and individualism.
Government implements socialistic and collectivstic policies.
Government enables housing for subprime.
Government protects unemployed.
Government bails out depositors.
You have a Democrat in the white house. Whoever voted for Biden can’t complain.
Socialists: we got exactly what we wanted, but it’s not our fault. It’s them! They didn’t to the RIGHT socialism.
And that soviet thing that tried 70 years desperately to make it work and failed also had it wrong. It’s not our ideology that is wrong. We can’t admit fault. Our ideology is perfect. It’s always somebody else’s fault.

Posted by: Vikichka | Mar 14 2023 5:44 utc | 289

The Register has a posting up with the title
Silicon Valley Bank’s UK arm bought by HSBC for 1 British pound in rescue deal
The quote

The chief executive of $51.7 billion revenue HSBC, Noel Quinn, said the acquisition made “excellent strategic sense” for HSBC.
As of March 8, SVB UK had loans of around £5.5 billion ($6.7 billion) and deposits of around £6.7 billion ($8.1 billion). HSBC said in its statement that the move being taken quickly represented an “emergency backstop to contain SVB contagion risk.”
HSBC said: “SVB UK’s tangible equity is expected to be around £1.4bn. Final calculation of the gain arising from the acquisition will be provided in due course. The assets and liabilities of the parent companies of SVB UK are excluded from the transaction.”[my bold]

Posted by: psychohistorian | Mar 14 2023 5:45 utc | 290

@ Vikichka | Mar 14 2023 5:44 utc | 294 who says they want to be my friend but continues to obfuscate the public/private finance core to the discussion of our forms of social organization.
Please tell us how the Pope Frank and King Chuck faced private finance cult of the West is better for humanity than the 70+ years of public finance example shown by China.

Posted by: psychohistorian | Mar 14 2023 5:58 utc | 291

Posted by: dh | Mar 14 2023 0:57 utc | 271

Another problem you may have if you start withdrawing large amounts of cash you are likely to have to explain to the bank manager what it’s for.

This happens to some extent in Mainland China and Hong Kong. Online you choose from a set menu, fairly broad categories, pay bills, import goods, etc. Not really intrusive.
At the bank it depends on the clerk remembering to ask you. You can say anything you damn well like. At my local HSBC branch where I know the staff I’ll make something up like:
“I shall spend most on strong drink and loose women, and the rest I will squander”.
She thinks for a moment then writes down: “Shopping”.
……………………………
Further to my remarks on public transport in Shenzhen I was astonished to learn this morning that such was the scale of usage on line 1, that they have opened a parallel line 1 along the entire length from Luohu to the airport. The extra lines just seem to operate at peak times. A world first?

Posted by: Walt | Mar 14 2023 5:58 utc | 292

In response to

At the bank it depends on the clerk remembering to ask you. You can say anything you damn well like. At my local HSBC branch where I know the staff I’ll make something up like:
“I shall spend most on strong drink and loose women, and the rest I will squander”.
She thinks for a moment then writes down: “Shopping”.
Walt | Mar 14 2023 5:58 utc | 297

LOL!!! It was good I didn’t have anything in my mouth when I read that…grin
Thanks for sharing

Posted by: psychohistorian | Mar 14 2023 6:06 utc | 293

From Xinhuanet

TEHRAN, March 13 (Xinhua) — Iran and Belarus on Monday set a roadmap for expanding their comprehensive cooperation and signed seven cooperation agreements in the fields of trade, transportation, agriculture and culture.
The roadmap was signed by Iranian President Ebrahim Raisi and his visiting Belarusian counterpart Alexander Lukashenko in a ceremony held in Tehran, according to the website of the president’s office.
The other documents, including one on the transfer of convicts, were signed by senior Iranian and Belarusian officials in the presence of the two presidents.
At a joint press conference with his Belarusian counterpart following the signing ceremony, Raisi said Lukashenko’s visit marks a turning point in the expansion of relations between the two countries.
He added despite all the sanctions and threats, Iran has managed to take huge steps toward progress, having turned the sanctions and embargoes into opportunities.
Raisi also voiced Iran’s readiness to share its experiences with Belarus.
He stressed that both Iran and Belarus are against unilateralism and maintain that improving “effective and constructive” relations among independent states are among the ways to “neutralize” the sanctions.
Lukashenko, heading a high-ranking delegation, arrived in Tehran on Sunday.

Posted by: psychohistorian | Mar 14 2023 6:25 utc | 294

From Xinhuanet

GENEVA, March 14 (Xinhua) — Russia agreed to extend a Ukraine grain export deal by 60 days after talks with UN representatives in Geneva on Monday.
Russian Deputy Foreign Minister Sergey Vershinin announced the decision in a statement after leading a delegation to meet UN officials headed by Rebeca Grynspan, secretary-general of the United Nations Conference on Trade and Development, and Under-Secretary-General for Humanitarian Affairs and Emergency Relief Coordinator Martin Griffiths.
Russia “does not object to another extension of the ‘Black Sea Initiative’ after its second term expiration on March 18, but only for 60 days,” Vershinin said. “Our further stance will be determined upon the tangible progress on normalization of our agricultural exports, not in words, but in deeds.”
The deal signed in July 2022 and brokered by the United Nations and Türkiye allowed Ukraine, one of the world’s key wheat producers and exporters, to ship food and fertilizer from three of its Black Sea ports.
The agreement has allowed the exports of 24 million metric tons of grain, and over 1,600 secure vessel voyages through the Black Sea, with 55 percent of food exports going to developing countries, according to the UN website.
UN Secretary-General Antonio Guterres pushed for the extension of the agreement during meetings with Ukrainian leaders in Kiev last week. On Monday, he reaffirmed that the United Nations remains fully committed to the Black Sea Grain Initiative, as well as to efforts to facilitate the export of Russian food and fertilizer, according to a UN release.

Posted by: psychohistorian | Mar 14 2023 6:26 utc | 295

the 70+ years of public finance example shown by China.
Posted by: psychohistorian | Mar 14 2023 5:58 utc | 296

Millions of people died in China during the Great Leap, with estimates ranging from 15 to 55 million
The major changes which occurred in the lives of rural Chinese people included the incremental introduction of mandatory agricultural collectivization. Private farming was prohibited, and those people who engaged in it were persecuted and labeled counter-revolutionaries.
https://en.m.wikipedia.org/wiki/Great_Leap_Forward

What is it that Americans don’t understand about China?
They don’t know how capitalist China is.
And what is it that the Chinese don’t understand about the United States?
They don’t know how socialist it is, with its Social Security system and its policies to tax the rich by collecting capital gains taxes. China is still in the process of building a social safety net that is largely undefined and underfunded, and it has no tax on personal capital gains. In 2020 China had more billionaires than the U.S. did, and it outpaces the U.S. three to one in minting them. Consequently, inequality is greater in China than in the United States, measured by the Gini coefficient.

Posted by: Vikichka | Mar 14 2023 6:33 utc | 296

Posted by: Vikichka | Mar 14 2023 6:33 utc | 301
At this point I don’t see how anyone takes your Mark Levin / Dinesh D’Souza level BS seriously. I guess karlof1, psychohistorian and others including Roger may continue to argue with you, but you’ve got nothing except 9th grade Ayn Rand level understanding of any of this. At least you aren’t capable of conveying it, which may indicate English as a non-first language. Regardless, I will be surprised if anyone continues to try. Your mind is not only made up and cemented on a false concept, but it’s got a coating of superglue around it rendering any attempts to breach the barrier futile.

Posted by: Tom_Q_Collins | Mar 14 2023 6:45 utc | 297

Posted by: Tom_Q_Collins | Mar 14 2023 6:45 utc | 302
Typical response of a person without arguments in defence of a failed mysanthropic ideology.

Posted by: Vikichka | Mar 14 2023 6:53 utc | 298

Posted by: Vikichka | Mar 14 2023 6:53 utc | 303
You’re literally projecting exactly what I said you would back onto me. Capitalism is a failed misanthropic ideology. I mean really…you don’t actually get it, do you? And all your “points” depend on lies and omissions.

Posted by: Tom_Q_Collins | Mar 14 2023 7:11 utc | 299

Posted by: kana | Mar 12 2023 17:50 utc | 42
Do you even believe that Bin Laden planned 9/11?
Not only the Democrats, but both parties.

Posted by: Colin | Mar 14 2023 7:14 utc | 300