Message from @Will - MD
Discord ID: 545192554094657538
The banking runs were supposed to happen. I guess the banks are restricting giving back deposits. Could this be a significant event in regards to future investing etc?
@ThisIsChris and thanks for your response to my question about general investment in stocks. I see people who are smarter than me in terms of IQ and they seem to just get richer all the time picking stocks. I tried wealth front the automated investing algorithm but it just lost me $100 of $5000 I put in. Not gonna get rich and be able to afford a home, waifu, and kids that way anytime soon lol
Deposits are FDIC insured up to 250k I believe. A run on the banks won’t impact you unless you have more than that
@Zyzz what effect on the banking industry do you think the yellow vests will have in terms of banking runs?
I guess the French bank accounts are protected like ours?
*aren't protected
French banks in the US have the same FDIC deposit protection just like an American bank so no impact
> Deposits are FDIC insured up to 250k I believe. A run on the banks won’t impact you unless you have more than that
Do you realize that the FDIC does not have enough money to cover their insurance policy against a bank run of any significant scale?
@Tanner - SC can't they borrow from the fed?
Well if we are calling into question the stability of the FDIC then we ought to prepare for the global collapse.
For the record, I am not in this camp
@Zyzz so can they borrow from the federal reserve, or would they be underfunded in such an event?
I’m not sure of the actual mechanics of how the FDIC program works but I don’t believe apocalyptic scenarios will pan out so I’m not worried about bank runs
Oh ok. I have no investments or options in life generally so I was actually hoping for the banking runs to have some cataclysmic effect. Though I know better of course, things will likely not change in my lifetime
@Jonaltright @Zyzz I looked into sources for what happens if the FDIC "runs out of money", this was a widely discussed topic in 2008. The FDIC wrote this in response to an article in Bloomberg speculating about what would happen if FDIC ran out of money:
>Bloomberg reporter David Evans' piece ("FDIC May Need $150 Billion Bailout as Local Bank Failures Mount," Sept. 25) does a serious disservice to your organization and your readers by painting a skewed picture of the FDIC insurance fund. Let me be clear: The insurance fund is in a strong financial position to weather a significant upsurge in bank failures. The FDIC has all the tools and resources necessary to meet our commitment to insured depositors, which we view as sacred. I do not foresee – as Mr. Evans suggests – that taxpayers may have to foot the bill for a "bailout."
>Let's look at the real facts about the FDIC insurance fund. The fund's current balance is $45 billion – but that figure is not static. The fund will continue to incur the cost of protecting insured depositors as more banks may fail, but we continually bring in more premium income. We will propose raising bank premiums in the coming weeks to ensure that the fund remains strong. And, at the same time, we will propose higher premiums on higher risk activity to create economic incentives for poorly managed banks to change their risk profiles. The fund is 100 percent industry-backed. Our ability to raise premiums essentially means that the capital of the entire banking industry – that's $1.3 trillion – is available for support.
>Moreover, if needed, the FDIC has longstanding lines of credit with the Treasury Department. Congress, understanding the need to ensure that working capital is available to the FDIC to provide bridge funding between the time a bank fails and when its assets are sold, provided broad authority for us to borrow from Treasury's Federal Financing Bank. If necessary, we can potentially raise very large sums of working capital, which would be paid back as the FDIC liquidates assets of failed banks. As per our authorizing statute, any money we might borrow from the Treasury must be paid back from industry assessments. Only once in the FDIC's history have we had to borrow from the Treasury – in the early 1990s – and that money was paid back with interest in less than two years.
So two takeaways, one major and one minor. The major one is that FDIC can't fail because it will just borrow from the Treasury. The minor one is "lol" because the treasury means the public finances, so yes it'll be taxpayer funded.
Well that's absolutely tragic. So though the bankers may not want the headache of people pulling their $, and will try to stop it prematurely- in the end they don't suffer. Great
"The system" has entire industries dedicated to finding possible holes in it, which allows them to
be patched them up well in advance.
can you count paying the principal on a business loan as a deduction? for some reason i think the answer is no, since you didn't count it as income.
@ae <@&322715617138311171> @Ben - OH @ophiuchus ^
What do you guys know about Think or Swim app? It’s like where you trade with fake currency and it mirrors the stock market so you see how your strategies work. Do any of you mess around with that?
I did some of that when I was younger. You can start a fictitious Yahoo Finance account as well and do something similar.
Do you have a trading account and you’re looking towards future holdings and strategy, or are you looking to mimic a more technical investment method?
I haven’t started trading yet. I have a trading account with E*TRADE but I haven’t put any money in it yet
@Myndrian I have ToS and yes it is great to get a feel for stock/options/futures trading, it's basically the best simulator out there, you can even go back in time and try to figure out what you would have done in the past, seeing the stock market move tick by tick. ToS is pretty much the best trading software you can get without paying for it.
(ToS has a few modes, some for paper trading and some for real trading)
It also has a pretty good mobile app that you can do the papertrading on too called "trader"
@Will - MD no you cannot
What are some thoughts on investing into CBD/hemp companies? There's room for growth so it potentially could be a good investment
@Auf WI last time I looked into it was last fall. everyone I knew who had invested in them said "wait before investing in it again" I don't know if they would say the wait is over or not.
Not-dumb guy thinks the bottom may be in.
Interesting stuff companies standing up to visa