> Now that the Federal Deposit Insurance Corp. has taken over SVB, investors expect the bonds to be sold off in coming months, adding supply to the weakened market and pushing prices lower.
Do the rules say that FDIC has to sell these right away? I imagine they have discretion on timing the sales so that it doesn't dislocate the market. The FDIC is all about stability, after all...
It's trippy to see my own tiny contribution to tidal waves like this:
> First Republic’s funding relies in large part on wealthy individuals who increasingly have a range of options to seek higher yields on their cash at other financial institutions as interest rates have risen.
Over the last year I kept my FRC checking account at 100 (not the real number). A month back or so I dropped it down to 50 and moved the other 50 into T-Bills.
The mortgage is one of the assets seized by the FDIC and sold off to meet bank liabilities. On your end little should change in the short term, and you may have a different owner for the mortgage at some point (and as I understand it, your mortgage changing ownership is a fairly common occurrence in general). As far as payment and servicing goes, there should be continuity in how that is handled.
In short, you'll still owe somebody, it just won't be a bank that doesn't exist anymore. Over the short run, the FDIC or an acquiring bank will take over the back-end of the payments, which will be made much the same way as they are today.
Wow, the government acted incredibly swiftly and decisively to crush the possibility of a general bank panic. The current US banking system is very different from the 2008 system.
From what I recall of the last set of bank failures this is pretty much the FDIC's SOP. They swoop in on Friday with little notice, close the bank, work through the weekend and open up for business on Monday. It apparently made for some interesting work environments.
I agree that we shouldn't buy into the media's perpetual gloom & doom machine but I also caution against the knee-jerk contrarian "everything is fine" impulse.
The percentage rate of change is often the best signal in these kinds of indicators. We're around 20% YoY. The last two years (2004 & 2008) we hit that kind of level weren't strong economies.
The Dec '22 FOMC Minutes also hinted that the FOMC is also watching credit card levels. Interest rates have exploded higher yet consumers are increasing their credit card debt.
Are leaky refrigerants still as big of an issue? CO2 is fairly benign, ammonia... is toxic but doesn't it break down over time? Not sure on that one.
Anyway, I'm sure the combined electricity usage is a bigger issue than the refrigerants. If this (and other) technologies can help reduce that, that would be great.
Mind you, there's a few things that can already be done to reduce power usage of cooling solutions; better insulated buildings (with shutters, awnings, and heat-reflecting windows), chest fridges, evaporative coolers, etc.
There was a video about this clay fridge (https://mitticool.com/product/mitticool-clay-refrigerator50-...) that cools its contents (by 10-15 degrees compared to room temperature) just from evaporating water; analog tech like that could be used anywhere to help cool things down.
