this post was submitted on 14 Feb 2024
72 points (98.6% liked)

news

23464 readers
2 users here now

Welcome to c/news! Please read the Hexbear Code of Conduct and remember... we're all comrades here.

Rules:

-- PLEASE KEEP POST TITLES INFORMATIVE --

-- Overly editorialized titles, particularly if they link to opinion pieces, may get your post removed. --

-- All posts must include a link to their source. Screenshots are fine IF you include the link in the post body. --

-- If you are citing a twitter post as news please include not just the twitter.com in your links but also nitter.net (or another Nitter instance). There is also a Firefox extension that can redirect Twitter links to a Nitter instance: https://addons.mozilla.org/en-US/firefox/addon/libredirect/ or archive them as you would any other reactionary source using e.g. https://archive.today . Twitter screenshots still need to be sourced or they will be removed --

-- Mass tagging comm moderators across multiple posts like a broken markov chain bot will result in a comm ban--

-- Repeated consecutive posting of reactionary sources, fake news, misleading / outdated news, false alarms over ghoul deaths, and/or shitposts will result in a comm ban.--

-- Neglecting to use content warnings or NSFW when dealing with disturbing content will be removed until in compliance. Users who are consecutively reported due to failing to use content warnings or NSFW tags when commenting on or posting disturbing content will result in the user being banned. --

-- Using April 1st as an excuse to post fake headlines, like the resurrection of Kissinger while he is still fortunately dead, will result in the poster being thrown in the gamer gulag and be sentenced to play and beat trashy mobile games like 'Raid: Shadow Legends' in order to be rehabilitated back into general society. --

founded 5 years ago
MODERATORS
top 10 comments
sorted by: hot top controversial new old
[–] happybadger@hexbear.net 38 points 2 years ago (1 children)

The FT reported that Michael Hsu, a top regulator at the US Office of the Comptroller of the Currency, had noted in a recent interview that the lightly regulated lenders, the shadow banks, were pushing the banks into lower-quality and higher-risk loans.

I vaguely recall this happening once before.

[–] anarchoilluminati@hexbear.net 15 points 2 years ago (1 children)

I'm sure if they're doing it again then it went well the first time.

[–] huf@hexbear.net 10 points 2 years ago

it did go well the first time. they stole a lot of money by ruining the economy, then they stole a lot of money AGAIN when they got bailed out.

and the poors took the L for all of it. so why not do it again and again?

[–] AlkaliMarxist@hexbear.net 29 points 2 years ago (1 children)

Remember when western economists were convinced that the proliferation of shadow banks was a sure sign the Chinese economy was about to collapse?

[–] EnsignRedshirt@hexbear.net 28 points 2 years ago

When all you have is a neoliberalism, everything looks like a Chinese economy is about to collapse

[–] Red_Sunshine_Over_Florida@hexbear.net 12 points 2 years ago (1 children)

What does this mean in the coming years?

[–] Lovely_sombrero@hexbear.net 14 points 2 years ago (1 children)

The Fed has like two big emergency money-printing facilities for big banks, where the big banks can borrow unlimited sums of money on a daily basis, so these loans from big banks to shadow banks themselves shouldn't cause anything systemic. But why do the shadow banks need those loans, are they losing money on something like real estate? Impossible to tell.

[–] FuckyWucky@hexbear.net 9 points 2 years ago* (last edited 2 years ago)

NBFIs require external capital since they can't take loans from the central bank like commercial banks can. They can only lend out the money they have, they can't go magic mode and add numbers to a customer account.

So they go to commercial banks for loans at lower rates and lend it out at higher rates.

[–] tamagotchicowboy@hexbear.net 9 points 2 years ago* (last edited 2 years ago)

Easy, shadow banks are for generally ez bake no-question funding of shadow wars (or outright wars like that one last really big one we had).

[–] FuckyWucky@hexbear.net 9 points 2 years ago

good thing is NBFIs can't take deposits from the public the way commercial banks do so it might not be as damaging as 2008 but of course under capitalism everything is interconnected.

This isn't exclusive to U.S. either.