From Jesse Myers’ Substack about this week’s JP Morgan takeover of failing First Republic Bank.
All I can say is le sigh:
80% of losses on the assumed loans will be “shared” by the government, meaning they are funded ultimately by the taxpayer. Similarly, the $50B FDIC loan at an undisclosed fixed rate is risk borne ultimately by the taxpayer, in order to fatten the deal enough for JPMorgan to expect a 20% IRR on what would have been massively unattractive without taxpayer-funded incentives
Privatized gains, socialized losses. 2008, but bigger, and fewer people care. Homo domesticus.
The Fed prints $3T, oops we have 10% inflation.
Let’s fix this by rapidly jacking rates; oops, we have bank failures.
Let’s blame it on crypto and supply shocks and anything but our own self-serving incompetence.
Come on, people, just buy BTC and ETH and at least partially opt the f out!
Source: https://jessemyers.substack.com/p/651-may-2023-market-update-on-bitcoin