J

[J @JGusto]

Bbm

[J @JGusto]

@unusual_whales His puts are down 50% from where he bought them. Still outraged?

[Jim Bianco @biancoresearch]

To riff off of this ...
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We see two forces at work in the banking system – GREED and FEAR.

GREED is evident in the ‘bank walk.’ People act rationally by grabbing their phones and switching their money to a money market fund, which should soon yield over 5% thanks to yesterday’s Fed hike.

Money walks out of banks, not enough to cause a failure, but enough to contract profitability and the ability to lend. And they are coming back only when deposit rates equal market-based rates.

And this is not happening anytime soon ... the Fed just raised rates yesterday!

The FEAR is coming from bank bond and stockholders now that the FDIC changed the game this past weekend.

On Monday, everyone praised JP Morgan and Jamie Dimon for the good deal they got in acquiring assets and deposits of First Republic. They got a great deal, and that is the problem!

The FDIC was so insistent on avoiding the appearance of a bailout that they “zeroed out” all the bond and stockholders. Investors lost 100%. All bank bond and stockholders in any "shaky" bank now have to worry they can lose everything, and lose it quickly in a vicious cycle of falling prices.

So, the FDIC unknowingly set up some perverse incentives. Why acquire a struggling bank? Let them go into FDIC receivership, then the stock and bondholders get zeroed out, and you can pick over the assets and deposits. There is no need to worry about paying bondholders or profits for the stockholders, they are gone. The FDIC takes on the bad assets and the acquirer gets a great deal.
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The narrative in the market is mixing this FEAR and GREED aspects of this banking crisis.

$PACW and $WAL put out pressers in the last 18 hours saying their are not seeing more than expected deposit outflows. They should not. They should continue to see "bank walk" depositors looking for the highest yield possible.

The fear is with the bond and stockholders. The FDIC takes over banks after the close Friday. Is that what will happen to $PACW and $WAL tomorrow night? If so, does that mean stock and bondholders have 1 1/2 more trading days to get out before zero?

This is the environment the FDIC deal last weekend set up.

Deposit panic is not the problem. Financial market panic is now that the specter of -100% losses has been introduced.

I understand why the FDIC did this. And on one level I I agree with it. But just because it is "fair" does not mean it does not come without a consequence.

[Tom Emmer @GOPMajorityWhip]

Today, I introduced the CBDC Anti-Surveillance State Act to halt efforts of unelected bureaucrats in Washington, DC from stripping Americans of their right to financial privacy. 👇

[Marc Andreessen 🇺🇸 @pmarca]

Whitepill #1: The hysterics have only a negative vision to sell. Narrow, pinched, sanctimonious, endlessly critical, resentful, bitter, demoralizing, depressing. No normal person actually wants to live like that.

[Fascinating @fasc1nate]

When the ruling class of Rome would become too corrupt or unjust to the commoners, the commoners banded together, evacuated the entire city and left the elites to fend for themselves. Learn more: https://t.co/667y79cEw6

[Lyn Alden @LynAldenContact]

Custodial financial services allow governments to freeze accounts first, and then sort out who is guilty or innocent later.

Self-custodial financial services force governments to actually charge people with a crime before they can use pressure to freeze their accounts.

[Andrew Ellis @amellis_84]

“A society grows great when old men and women plant trees in whose shade they know they shall never sit” -Quaker Aphorism

[Funhouse @BackAftaThis]

From 1934 until 1976, the NFL champions played the college all-stars at Soldier Field. This was the final game in 1976. It did not go well. Torrential rain and lightning ended the game in the 3rd quarter. The #Steelers won 24-0.

[Vic Niederhoffer @VicNiederhoffer]

big al contributes an article with deep resonance for specs.. ruhn away when the senses pick up signs of a superior predator https://t.co/USmYElgz64

[Bryce ☭ @BryceWeiner]

Hahahah

Oh crypto, you have no idea.

[The Factor Report @PeterLBrandt]

Just saying. $BTC

[Sunrise Trader @SunriseTrader]

Remember without our health none of this matters. Do something this weekend that works your body and lets your mind relax. Be safe, be well.

[Luis V. Sanchez @LuisVSanchez777]

Behavioral biases explained by a poker pro.
https://t.co/614uzLXECg

[cubs in 7 @bleacherbum54]

Eddie Vedder jamming on waveland outside Murphy's @Cubs #PearlJam 🙌🏻🙌🏻🙌🏻

[zerohedge @zerohedge]

*EQUIFAX ASKED TO STOP SELLING CREDIT-MONITORING SERVICES
*ATTORNEYS GENERAL MAKE DEMAND IN LETTER TO COMPANY: BBG

[The Fly @theflynews]

Equifax says 400,000 European customers may have been hacked $EFX https://t.co/64q4IRdWch