@Brewstermonk1@Rainmaker1973 It’s more the lower chap who is using the upper chap as a base to pull on (ie using his arms to pull and legs to jump) but I agree it’s very smooth
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@ditzikow@pitdesi@matt_levine Hoping for 100c on the dollar doesn’t sound reasonable to me
They’ll run a bidding process probably ending up in the 80-90c on the dollar subject to asset quality and duration (ie if they have 10y bonds at 2% those need to be priced at 80c to be in line with current 4% yield)
This is a poor risk management decision by @jasonlk
This is an assymetric trade where on the upside (ie by leaving your funds) you get some extra yield + a relationship in the long run but on the downside you can lose millions
I agree 100% with @EconomPic in this tweet https://t.co/IRTDyTt1xT where ideally you'd say you are staying in (to limit bank run potential) but you actually pull your funds out
maybe that's what @jasonlk did but he seems like a straight up guy (tbf he's also smart so who knows)
IMO… optimal move from an investor standpoint is to tell everyone there is no bank run… while you pull every last cent out of that bank https://t.co/FRruRHjs18
This is a poor risk management decision by @jasonlk
This is an assymetric trade where on the upside (ie by leaving your funds) you get some extra yield + a relationship in the long run but on the downside you can lose millions
I have been in a similar situation in the past and didn't make the right decision quickly so I can definitely relate to @jasonlk but having been on the wrong side of that trade in the past, it's clear to me what to do in this situation
@GeorgeBevis see my other reply on the discount window facility which is there for that specific purpose - it definitely shouldn't be mandatory otherwise it could create contagion from a bad bank to good banks
all of this has been thought at the back of 08 so it's fairly robust I would say