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JPowsSecretlover OP t1_jeebjfl wrote

Reply to comment by erickssm in "No REALLY, we're doing fine" ~ every bank right now by JPowsSecretlover

This might be my Burry momentimg

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FVMAzalea t1_jeemcwz wrote

Nah, you do sort of have a point. As those deposits grew in the last few years, banks bought assets (like bonds) with them. Now those assets are worth less (though not worthless) so there can be (and has been) damage from the pace of withdrawals, not just the amount of withdrawals relative to the total.

Not sure if your graph is absolute outflows or net outflows across all banks though. If I withdraw $1M from First Republic and put it into Chase, the net outflow is $0 but the total outflow is $1M.

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bnh1978 t1_jeep0j9 wrote

Added to this is that the depository reserves were reduced to 0% in early 2020.

https://www.federalreserve.gov/monetarypolicy/reservereq.htm

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DerpyMcOptions t1_jefgghf wrote

Makes you wonder how many of the shitcoin/stablecoin brokers are basically insolvent b/c they all claimed to have cash positions in the form of T bills....

So really, are they pumping BTC through fake printing of more shitcoins to cash out their BTC and liquidate personal holdings before they announce the collapse of stablecoins all before the public figures it out?

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ultralane t1_jefyjsl wrote

T Bills are never considered as cash and any audit firm worth an ounce would have a friendly discussion with management and a disclosure to the public (if the issue isn't rectified).

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DerpyMcOptions t1_jeg695o wrote

Circle literally has it on their website they consider T bills as cash equivalent balances which is locked up as short term treasuries held at custodians like blackrock etc.

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ultralane t1_jega5nb wrote

I had gotten my treasury investments mixed up. If a maturity is going to be matured in 3 months, then the t-bill can be considered as cash. Otherwise its a short-term investment.

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DerpyMcOptions t1_jegfbqj wrote

They make no mention they were of 3-mo they could be 2yr dated and either way; if due as payment B4 maturity that would mean significant losses piled up and liquidated at losses. This means any of these dumb shitcoin/stablecoin which nosedive frequently are all false pegs and not stable.

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ultralane t1_jeglyty wrote

T-bills always mature within a year. Treasury notes lasts from 2 - 5 years. Treasury bonds are longer.

T-Bills are liquid assets, but I would definitely pause if they don't have the standard 3 month rule that everyone else normally applies.

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DerpyMcOptions t1_jegoiyr wrote

Circles site doesn't specifically mention t bills, they actually just say treasuries.

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DerpyMcOptions t1_jegou8w wrote

Q, why the fuck are you bothering to try and defend random shitcoins when you won't even go look it up?

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ultralane t1_jegshw1 wrote

I never said I was defending. If a maturity is maturing in 3 months or less, its allowed to be in Cash on their financial statements, assuming that it is disclosed on what's included. The lack of a hard and fast time rule is what is sticking out to me, assuming Reddit is stating the footnote correctly. The 3 month rule is applicable to 99.999999% of companies that follow GAAP. I really don't have an interest in going through some random companies FS. Just stating what is standard.

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