South Africa Invites--------Putin!

       Can you imagine? A civilized country such as South  Africa inviting an international criminal to a hosted gathering of the BRICS? Hmmmm. The I.C.C. has issued a warrant for the arrest of Vladimir Vladimirovich Putin, aka Vova. He is charged with war crimes against civilians in Ukraine. The South African government has already taken flak over this invitation. Now Soth Africa has a record of ignoring international criminal warrants having refused action against one Al-Bashir 3 years ago.

     Ignoring this warrant would create significant turmoil among a divided population that has suffered recently with public charges against a former president for corruption. This public thrashing has been painful for all South Africans; and now, this meeting and its participants could add another  layer of unrest among the people of South Africa. Additionally, this well advertised gathering could attract certain groups who would do harm to such high level leaders. Security measures would have to include unprecedented numbers of police. What would happen if, say, teams of Ukrainian commandos interrupted proceedings? Hmm. Would Yevgeny Prighozin come to the rescue with 5,000 Wagner Group soldiers/mercenaries? No, he would send a couple of recruits with nothing better to do.

       Maybe the I.C.C.- Hague would send a some marshals to effect an arrest; probably not; bad form. My guess is Putin will have to decline because of pressing business at home in Moskva, picking out new wallpapers for the dacha, and working on a summer menu for his solstice party where his guest swill likely see the northern lights from the terrace.

Go BRICS!

NBA Final Tomorrow

       Well, there's one more series of games to determine the NBA Season Champion. How long will it go on? Oh, only 7 games or less. When did the finals begin: Easter Sunday? Valentines Day? Presidents Day? Ground Hog Day? Who cares. Denver Nuggets will end this marathon in 4 games and send the Heat back to La La Land and Hurricane Season. Oh, yes, and to contemplate the feud between Ron Sanctimonius and Mickey Mouse Club of Orlando, etc.

      Yes, its been a long season. Does anybody count the injuries inflicted on the high-priced athletes who entertain us? Well, they are well compensated, so it's ok if they sprain the occasional ankle, right? But we the fans have to endure the endless reportage that strains to grab our waning attention as we seek relief from the barrage of useless info.

Look Ivan, Drones Raining on Moskva

       So, we have drones impacting deep into Russyan territory. Kremlin liars/spokepeoples say they have been sent by those pesky Ukrainians down south. The nerve! Chief Dictator, Vladimir "Vova" Putin says this is an act of terrorism. Ha,ha,ha,ha,ha,ha,ha,ha,ha. You sooooooo funny Vova. You talk like standup comedy fellow from Saturday Night Live program. This coming from short, little fellow who ordered "special operations" into Ukraine 16 months ago(Feb. 24, 2022). These "special operations" murdered innocent civilians, men, women, and children. Russyan army troops killed civilians outright, without cause. They murdered prisoners, they murdered whoever opposed their "special operation". And now they have the gall to claim retaliation by Ukraine is an act of "terrorism".

       This claim merely underscores the delusions of once modern Russya. The population of the largest country in the world accepts the current leadership's position that there exists on the border of Russya a possible threat to the sovereignty of the Rus peoples. Hence, an invasion is necessary to alleviate this perceived threat by military action. It hasn't gone as planned. Within a short period of time, the Wagner Group  was ordered to bring some of its force back to Ukraine to assist the regular army that faltered under the current leadership. No sooner than when they arrived, their leader, Yevgeny "the Chef" Prighozin claimed they lacked ammunition and his mercenary army was not being resupplied. He also claimed that regular army leadership was weak, disorganized, and generally incompetent. Hmmmmm. trouble amongst the invading forces. And now..............?

     So, we have drones raining down on Moskva.  Tsk, tsk, tsk, Ivan. This is only the beginning. Yes, another barrage of Russyan drones will be sent south to Kyiv(99% will be intercepted and destroyed), but the Ukrainians are used to this style of assault- a minor inconvenience that only serves to harden the attitudes toward the largest country in the world that murders civilians and arrests protesters at home who speak out against Vova and his destructive policies that serve to cripple the economy and erode the world's opinions of Russyans in general.

        Soon, countries worldwide will revoke all, repeat ALL, visas issued to Russyan citizens living abroad; maybe not Communist China, one of Vova's last friends. I can't wait until Pres, Xi JP comes calling with his "shopping" list for Russyan products. He'll deal like he deals with the rest of the world: "We extend wonderful credit to our dearest friends with very liberal payment plans. Yes, we also will build ports facilities, airports, highways, housing apartments, railroads, and energy producing plants fired with local resources(coal)." Vova will attest to the good intentions of Mr. Xi as he signs on the dotted line to terms dictated by Beijing .

     In the meantime, Dear Citizens of Moskva, watch the skies above for flying objects sent by others to ruin your day.

Banks: Too Big to Do Anything Right?

      Well, your suspicions turned out to be correct: American banks are too big to manage. As we have found out most recently, big banks, despite being run by experienced banking professionals, can succumb to financial pitfalls as simple as a change in interest rates. What? Didn't we see and hear that the FED was raising interest rates to curb inflation? Didn't the bankers get the same information when we did? Hmmmm. What happened at Silicon Valley Bank, safe harbor for the techno wizards of Silicon Valley? All the funds stashed in this well-established institution were in the neighborhood at a bank that dealt locally for locals/startups/ billionaires. Then the bank started having issues with assets and liabilities(deposits). Depositors started pulling funds out. What started as a trickle, began to flood out. federal auditors were in the bank, and, they proclaimed all is well, until it wasn't.

      Then, Signature Bank popped up as a problem. Then, it, too, was taken over. And then, First Republic Bank of San Francisco was identified as under water. First Republic was pushed into the waiting arms of another-larger institution and depositors were assured by Janet Yellen, Secretary of the Treasury, that ALL deposits would be insured against loss. Not so much for stockholders in any of the above. So, the economy was saved from destruction again, and Americans could sleep comfortably in bed at night without worrying about their paychecks bouncing down the lane.

      In the last week, the acting Comptroller of the Currency, Mr. Michael Hsu, made statements to the effect that banks are too big to function under the control of existing management structure(s). Too many variables exist in the financial realm and cannot be adequately controlled in a company that controls hundreds of billions of dollars(or more). No single individual, no board of directors, no staff managers, no senior employees, no structure of controls works at a big bank. These banks have grown beyond their capacity to function as per design. According to the Comptroller, banks have to be downsized. They have to be reduced into a business that can function as a key feature of the national economy. Business and individuals can no longer count on these megabanks to operate effectively, legally, and without adequate oversight. This comes from the man and the office charged with oversight. 

       Unlike in 2008, this year the problem was the interest rate hikes by the Federal Reserve Bank and its leader, Jerome Powell. He stated that inflation had exceeded expectations and had to be controlled with rate hikes, which was broadcast widely. Were banks asleep? Apparently, and they did little to correct the situation, despite having auditors on the seen, in house.

     When will the banks be reined in? Another good question. Watch the bankers with their armies of lobbyists descend on Congress to promote the status quo and to preserve the fat pay packages of the senior staff at these Wall Street institutions, among others. Don't hold your breath waiting for change, my friends.

Celtics v. Heat:Game 7 Required

      Well, did you like Game 6? One knew at the onset it was going to be close, and it was, by one point. Lots of bettors went home disgusted with their choice to win the contest. The Celtics, on the other hand went home to Boston exhilirated by the come-from-behind victory at the buzzer. They became the 4th team to overcome a 0-3 deficit in a championship series to go to Game 7.

      Boston fans will likely not be able to sleep for the next few days as their guys travel to Bean Town for the final game to determine who gets to take on the Denver Nuggets.  Be careful what you wish for when it comes to moving on- no matter the Game 7 winner, that team will have its hands full with Denver.

       So these athletes, wealthy professional players on teams that field only 5 players at once, will play out the season finale series, and then take a long rest(sort of) of a few months before all the trading, moving, retirements, and hiring takes place.

          Watching the Celtics v. Heat was truly like watching a seesaw: up and down, back and forth. When Boston went ahead, it didn't last. The Heat would catch up, maybe go ahead, then fall back again. The 4th quarter was fateful, especially the last 3  minutes as timeouts were called; fouls were called and reviewed, players came and went; and the ball rimmed the hoop and dropped out, increasing tensions and dashing hopes. After capturing some momentum, Miami was able to overcome a deficit and go ahead by 1 point and Boston had little hope with 3 seconds left on the clock. Better than 1 second, for sure. The ball was in bounded and the shot was put up, and it failed to drop in, and the put back was successful as the buzzer sounded, sending both teams to a Game 7 showdown in Boston

Memorial Day: 2023

      Well, Sports fans, it's the 'Big Weekend" of springtime- Memorial Day weekend. Back in the 'Day', schools were getting ready to close, if not closed already; vacation plans were in place; summercamp(s) were sweeping out the rustic cabins waiting for the campers to descend on the site in a week or two after the counselors arrived, and Mom was taking off the apron to muster her vast skill set for 3 months of dealing with Mikey, Tommie, Audrey, Jenny, Sis, Freckles, and the dog-Chips.

       This idealized view of a '50's era weekend does not exist anymore. Yes, we have 3 days of weekend fun to enjoy, but it does not signal the commencement of any time period of note. These days, the 4th of July marks the beginning of the summer, brief as it is. Old Summer started on Memorial Day and ended on Labor Day weekend, 3 months hence. Because of the clamor for improvement in educational outcomes, school boards took the easy way out: extend classroom time by several weeks: that will work and it must. So, Mom's gotta break, and teachers got screwed into spending more time without making significant progress on outcomes among their students. That point could be challenged, but all outcomes vary, depending on a host of local factors(money).

        At this time, I enjoy reading stories about aging veterans, especially the World War II vets whose numbers don't amount to anything much any more. Most have gone on to their reward. Recently, in California, a story/interview was printed about the last living survivor of the U.S.S. Arizona's bombing and sinking after the Japanese attack on Pearl Harbor on Dec. 7th, 1941. "A Day that will live in Infamy" as proclaimed by Pres. Franklin D. Roosevelt on the 8th of December, 1941. The then young man was able to escape the flames and the bombs to help his shipmates in need after and during the attack. He went on to become a fighter pilot before the war ended. Great story.

Have a nice weekend, and look for more topical subjects later today.

Hizzoner, Da Mayor

Eric Adams of New York City

       Da Mayor of the US Financial Center(NYC) has more than a few problems on his very large plate. Most recently, he's had to focus on migrants being bused to his city and dropped off. He must now provide a variety of assistance to these new arrivals.  In an opinion article in the NYT, Linda Gibbs wrote of current conditions in the city regarding the homeless. Ms. Gibbs was the Homeless Commissioner under former Mayor Michael Bloomberg. She writes confidently from a position of experience(s) as director of policy in NYC a few years ago. She is able to identify certain numbers that are not obvious. In today's situation in NYC, about 40,000 individuals are in need of immediate housing. Of that number, 20,000 are asylum seekers, bused to NYC and thrown into the mix. Mayor Adams' hands are tied by the courts which have taken over the policies and programs available to all in need. The results, according to Ms. Gibbs, limit the options available to the Mayor.

     So, we have the Federal government reasserting its control over immigration and immigrants. However, when on US soil, those same immigrants are dispersed widely and where ever they end up, then locals must provide all services. Hmmmmm. And why is this so? Can anybody answer this question with certainty?  Apparently, this situation/process is bureaucracy-bound: rules set by the courts leave little room for innovation, correction, or improvement. Until this legal binding is changed, the asylum seekers will flounder under archaic rules that offend not only the seekers, but also the providers. A sad situation, indeed.

     Can we offer any hope to Mayor Adams? Hardly. When we look at NYC today, one can only shake one's head, sadly accepting a quagmire of the court's doing.

Celtics Win: Finally

     Down 0-3 going into the game last night, the Boston Celtics faced elimination from the NBA Tournament. The 8-seeded Miami Heat had upset the team in 3 straight victories over Boston. The 4th game shed little light on the the outcome of the best -of-7 Eastern Finals. Miami has had the number of the Celtics, handing the team from new England one defeat after another, at home and away. It does not look good, even after this last win.

      So, what are the chances of the Boston team? Not very good. Actually, very poor. In the history of playoff games, of 92 series, only 3 teams have overcome a 3-0 deficit. Hmmmmm. Can one hope for a Boston surge, winning the next 3 games? Don't bet on it. Some will, because they are diehard fans and know no other way to think. Maybe Celts will win the next contest, but I'm expecting the Denver Nuggets to win over the Heat rather quickly.

City of Ruins: Bakhmut, Donetsk,Ukraine

       Bakhmut is now controlled by the Rus peoples, aka Russyans. The city is largely abandoned after a 7 months long siege. The Ukrainian army has retreated to the perimeter, leaving the Rus' army/Wagner Group in control. There is nothing of value left in the once prosperous city. Thank you, Mad Vlad Putin, Dean of Dictators, Prince of Delusions, Raj of Mental Illness, and Premier of Scorn.

      Who will pay for damages? Who will pay for the rebuild? Who will pay for the lost lives of innocent men, women, and children? The Rus peoples, as they should. The Wagner Group, run by the kleptomaniac Yevgeny Prighozin, will have to cough up his wealth, stashed in -let me guess-Switzerland? Vova Putin will die in bed of heart failure soon. That death will be reported by medical authorities in Moskva from an undisclosed location. The government will stumble forward as the eastern half of the largest country in the world is taken by China for the sum of a few billion yuan, the accepted currency in Asia and what was once Eastern Europe.

      And, historians will write an epitaph for a people: the Rus. They will wander the continent in search of a mental home, but will not find a suitable place for generations as their bankrupt culture dissolved into depression and guilt in the 21st century.

Hiroshima: Surviving Building

 

                                            Surviving building at Hypocenter of Atomic Blast

Hiroshima

Peace Tower Hiroshima

G-7 Meeting in Japan: Hiroshima

       World leaders attended a G-7 Forum Meeting these past few days in Japan. This comes as the Japanese stock market reached highest levels in decades as foreign investments flood into Japan from around the world, population stats be damned. The meeting(s) were held in Hiroshima, Japan. This is the city that was partially destroyed by the first atom bomb as it was called in August, 1945.

Hypocenter

NBA: Lakers Drop 3 in Row

     LA Lakers are on the cusp of being eliminated from the NBA championship West Finals. They've lost again, their 3rd in a row, to a powerful team from Denver: the Nuggets. LeBron and company could not overcome the balanced, steady team that was picked to win it all this year. They look very good and very difficult to beat. LA does not look good; they didn't look very good against the Golden State Warriors, and it appears that Denver has their number. One last chance, but it does not look good for the Socal boys.

Denver 119

Lakers  108

Book Review: "The Daughters of Yalta",

   The leaders of the allies met several times during the course of World War II.  They were PM Winston Churchill of Great Britain, Pres. Franklin Roosevelt of the USA, and at times Josef Stalin of Soviet Russia. The goal of these meetings was to agree on measures needed to defeat Adolf Hitler and his German army that occupied western Europe and most of Eastern Europe inxcluding a large portion of the Soviet Union east of Poland.

      As the was neared its end with the imminent defeat of the Axis Powers in early 1945, the 3 leaders agreed to meet again. This time, Josef Stalin insisted the meeting be held in Russia, due to his leadership responsibilities at home. The site was a city on the Crimean peninsula: Yalta. Many topics were on the agenda, not the least how Germany was to be administered and divided at the end of hostilities. All 3 leaders would be supported by professional staff of statesmen, military leaders, sundry advisers and consultants. This book focuses on three young women, all daughters of 2 of the leaders and the daughter of one US Ambassador.

       Author Catherine Grace Katz, is an historian, and a lawyer. When in graduate school, she proposed this topic that was accepted as a viable topic for research. She launched into the topic and her subjects with  energy, patience, and diligence. Her research took her to various locations around the globe to inspect documents, key locations, letters, and personal memoirs of her subjects and their fathers. Most Americans know much of FDR and Churchill, but not so much of famous industrialist Averill Harriman who outlived them all, including Stalin who died in 1953. FDR died shortly after returning home from Yalta where his debilitating illness caused by congestive heart failure affected his role at the conference.

      The three women: Sarah Churchill, Anna Roosevelt, and Kathleen Harriman were gathered specifically to aid and comfort their respect fathers on the scene.  Anna Roosevelt was chosen over her Mother, Eleanor, who felt slighted by this decision. Sarah Churchill was chosen over the more obvious choice: her older Brother, Randolph, who had attended other conferences with his Father, Winston. Kathleen Harriman was the daughter of the US Ambassador to the Soviet Union, Averell Harriman, the industrialist turned civil servant and government insider. Kathleen was a war correspondent and champion skier. They would be not just observers but insider confidants whose opinions would have  significant effect on decisions affecting the post war disposition of governments and armies.

Russian Resupply Train Derailed in Crimea

        The main rail line in Crimea was blasted by explosions that sent train cars off the tracks. This rail line is a prime carrier of ammunition to the invaders troops battling Ukrainians army forces who have the approval and support of the US and NATO countries.  Strategic thinkers anticipate an offensive operation by Ukrainian forces any day, as efforts to take the city of Bahkmut intensify. Russyan army units have faced a determined foe battling invasion forces ever since the wholesale invasion began in February, 2022. A long time ago if you're in the infantry.

       The Kremlin has responded of late with more mass firing of missiles into Kyiv and other Ukrainian cities. 

Texas National Guard Troops arrive in El Paso

       In anticipation of a massive crush of illegal immigrants, the Texas governor has ordered 1500 well armed and well equipped soldiers to El Paso to hold the line. Can they possibly help thwart the efforts of illegals who have abandoned all thought of complying with the law. They'll take their chances with the numerous avenues that regularly let these illegal foreignors enter the US.

       The White House has little hope of convincing anybody in America or Mexico that these troops will be effective. How sad. The poor people want peace and security that they are unable to find it at  home in Guatemala, El Salvador, Honduras, and Mexico.

       So these troops are given the sad duty of trying to hold back a tide that will overwhelm them. Seems to me that the same thing happened in Vietnam over 50 years ago. The US military was understaffed and unable to hold back the numbers of Communists committed to the takeover of the South. Nixon capitulated, and Henry Kissinger signed the documents. And we all know the results of that agreement.

Warriors v. Lakers: Third Quarter Score

     The Warriors are back playing their game. Lebron and Company are in constant catchup mode, much like the Dubs in Game 3. Steph Curry is having a big impact tonight with 13 assists through 3 qtrs.  Maybe The Dubs will return to San Fran with a series tie. 12 minutes to go. The Golden Staters led by 3 at the half and by 7 at the end of 7.

Watch it. 

Update

Score tied with 3:29 to go.

Warriors down by 3-15 seconds to go. They will bring the ball down after a time out.

Warriors turn it over. 5.4 seconds to go.

Warriors lose tip off. 1.5 seconds to go. 1.7 to go.

Game over Warriors lose Game 3: 104-101.

Lakers lead Series 3-1. Back to SF for Game 5.

Texas: A Very Sad Place

      So, Gov. Greg Abbott has another mass killing incident to deal with again. Texans seem to be dealing with itchy trigger fingers. Seems the citizenry would rather shoot first and ask questions later. Where are the mythical Texas Rangers when all these events take place? On TV, no doubt. The Republican governor might make a statement such as "our thoughts and prayers go out to the families of all the victims of this tragedy". One won't hear "we have a plan to limit the sales of all guns in Texas, including pistols and long guns known as rifles, and we'll limit assault weapons such as military style machine guns and grenade launchers and rocket launchers and anti-tank missiles and bazookas and ,and,and,and on and on and on.

Back to sleep, Governor Abbott. And Ted Cruz and John Cornyn, too.

Warriors Bomb in LA

      Well, turnabout is fair play. So, the Lakers turned the tables on the Golden State Warriors in front of the LA fans. Hmmm. Coach Kerr didn't have a lot of answers after the team lost by-30 points. What happened after they stormed over the Lakers at Chase Stadium in SF.?Maybe the travel time upset the momentum. What momentum? 

    LeBron had lots of help from A. Davis who was all over the Warriors shooters that had a big night 2 days ago. Now the Lakers are up in the series: 2games to 1. Good luck Golden State, come back stronger.

Putin's Chef Demands More Ammunition in Bahkmut

        Well, now, the head of the Wagner Group, aka "The Palace Guard" of Putin's Kremlin, has ranted against the regular Army leaders in Ukraine for short-changing his frontline fighters in the eastern Ukrainian city of Bahkmut that has been the site of fierce fighting for several months. The Kremlin's troops can't advance against stiff Ukrainian defenders as they solidify the ground they have retaken during this  term of spring fighting. Yevgeny Prigozhin, the Wagner leader, has raised his voice in support of his mercenary troops that have been supporting army regulars since the war started in February, 2022( a long time when warfighting).

      The request for more ammunition has been met with silence by Putin and his advisers lurking in the hallways of the Kremlin. Maybe they want to watch the coronation of King Charles III in London tomorrow. Or, maybe they have some bets on tomorrow's Kentucky Derby; we know Putin likes horse and horseplay. However, there's more to this public spat. Nothing is happening, which translates into a Russyan problem. Troops are dying in the Donbass, most of whom are Russyan. And why? That question spews from the lips of the common citizen in Russya. Why are our sons dying in the south? Why do we have people being taken from prisons and sent to die for the Wagner Group? When will it end?

      Now we know that it is most likely that the Russyn navy vessels blew up the Nord Stream pipleline in the Baltic Sea, cutting natural gas supplies to Germany. Hmmmmm. Could this be the beginning od Putin's end. The little KGB colonel has reached the end of his reign? 

     The big  WW II Victory Commemoration takes place this week in Moskva. The Red Square area has been blocked for days in preparation. And 2 drones crashed into the Kremlin roof yesterday, putting the military and the Kremlin on edge; maybe the next attack will be during the parades. And why aren't these troops in Ukraine?

Have a nice day Vova.

Kremlin Rocked by Explosions

      So, the Kremlin announced that the seat of government was hit by drones, maybe launched by Ukraine. Sherlock Holmes rolled over in his grave and proclaimed to anybody listening that it didn't take a genius to figure that out. Oh, those Russyans, aren't they sumpin'?  Spokesperson for the gov'ment of Russya said Pres. Mad Vlad Putin was not in, but at a remore location where he was working on his Mother's Day gift card. 

    Maybe the oil farm fire in Crimea was also started by drones. Seems that drones are everywhere these days. They are probably DJ Masic drones from our friends in China. Russyan defense command said that all but a few of the drones were intercepted by air defense systems surrounding the cluster of buildings in Moskva.

     Meanwhile, Danish Defense dept. announced that it had photographs of several Russyan navy ships in the Baltic Sea days before the Nordic pipeline was blown up last year. No nation or group has claimed responsibility, but the Danes acknowledge 3 of the ships had resources on board that support submersible vehicles capable of diving to the 260' depth where the 4 pipeline were clustered. # of the 4 were damaged, interuppting the flow of natural gas to Germany. No doubt, Russya wanted to use a false flag to irritate the West as it raised its prices on fuels later. This drove producers around the world to raise prices, briefly.

Oh, those Russyans. Have a nice day.    

Warriors=WInners :Series Tied 1-1

       Chase Center was rockin' tonight as the home team rose from the ashes of the first game lose to blow away the LA LAkers and LeBron James. It certainly was a win in sharp contrat to the lose 2 days ago in the same place. How does this happen? Well, it's the playoffs for one, and anything can happen. Tonight it was Warrior night and Klay Thompson was the man of the hour(or the 48mins). He connected on 8 3 point shots for 24 points that put him in a league of his own when it comes to playoff games with high numbers of 3's.

       The Dubs made fewer mistakes/turnovers tonight, exercising good control inside the paint and passing with more accuracy outside. Draymond Green had a good night also, with few fouls and many assists and rebounds.  Wiggins played well underneath while getting his share of rebounds at both ends. Steph Curry had a consistent game, scoring 17 with more than 10 assists. Coach Kerr will be happy with the results of Game 2 victory by 20 points that allowed him to sit his starters for the last 5 minutes of the 4th qtr. Well done, Golden State. Next game, Game 3, in LA. Should be just as entertaining.

Warriors: Game 2 of SEMIFINALS

    Well, the first game was a good one-for LA Lakers and LeBron James. They beat the Warriors in a very close contest. Tied with 1:39minutes to go, the Dubs could not connect, missing several shots as defenders played tough. Even after LeBron was called for walking in the last minute, the Warriors could not convert to score, losing by 5.

    Tonight's game is about to begin at Chase Center in SF. Watch it.

PacWest Bank: Next Failure?

     A Southern California bank, PacWest, is about to be taken over by the Feds(F.D.I.C., etc.). It's a liquidity problem, again. Too many depositors taking their own money from the institution quicker than they can cover the outflow. Sound familiar? Similar to Silicon Valley Bank and Signature Bank? And First Republic Bank of San Francisco. Yes, excepting PacWest is much smaller in the same state, and caters to a market of high tech businesses like their northern brethren. Assets of PacWest are in the $32 billion range of assets. The company stock has dropped precipitously in recent days, and has fallen from highs in the $66/share range over the past year plus to about $3 and change. My, my. How does this happen to a federally insured institution these days?

      Let me count the ways. Now some pundits say that these banks had too many long term assets on their balance sheets, locked in at low rates, looking for guaranteed returns at 2% annually. Then the FED Reserve announced that inflation was galloping along and had to be corralled immediately. Trumpy thought inflation was caused by hot air. No, said Jerome Powell; too much money in the economy chasing too few goods and services. Then he approved rate increases: steeper at the beginning, then tapering as time went on. The most recent quarter point increase was announced Tuesday, May 2nd. So, now if you hold bonds/paper at 2% yield, those bonds have been crushed in value. Yes, crushed, and nothing can be done if one must sell into a down bond market. How sad. Savers are moving their hard earned dollars to some place that pays 4-5% annually. Like the old days And how about all those PacWest executives, bringing in salaries north of $200k, some at $450k. Hmmmm. Sounds very charitable for a little bank that was probably paying depositors about 0.01% on their savings accounts. And to think they didn't see this coming?  How about reports over a year ago that things were getting a little dicey at PacWest. How many executives ran for the door. How many sold their stock before it tanked. Hmmmm. Have regulators looked into this situation: trading on inside information?  Where will these parasites find work as they cruise the unemployment lines looking for a little support?

      And so it goes. And, the F.D.I.C. know about a lot more shaky institutions; we just haven't heard from them yet.

Have a nice day.  

Goodbye First Republic Bank, Hello JP Morgan Chase

       So, the F.D.I.C. , Treasury Dept. , Office of the Comptroller of the Currency, and White House officials, sanctioned the takeover yesterday(Sunday, April 30) of San Francisco headquartered bank First Republic. Later today, customers will be able to access any and all funds on deposit with First Republic through JP Morgan Chase, the new owner.

       First Republic? Who? When did it emerge from the sea foam as a financial institution of some size and reputation? How did it accumulate billions in deposits? Good location, for one. As the tech industry moved north from Silicon Valley/San Jose, and progressed from hardware to software, those tech startups didn't need real estate; all they needed was a cubicle or cubicles to house drones who sat in front of their screens and encoded computers with their ideas that they dreamed up over night while thinking creatively over drinks in a bar South of Market Street near Oracle Park and the UC Medical campus. All these folks from elsewhere needed a place to stash their cash while enjoying the lavish spending of VC money on their fantasies.  Hmmmm. So, all this cash was stashed in/with First Republic Bank. 

      The bank flourished and expanded into the suburbs around the Bay Area. Offices opened here and there and it seemed like a normal banking path to greatness and prosperity for stockholders. But this bank prospered when interest rates were almost zero. Decades of "cheap" money mesmerized bankers into thinking this would never end; here was finance as it could be and it should be. Put your money in our bank, and we'll watch it, carefully, while paying you 0.0015% interest on your money(the going rate) that we will lend at some rate north of 4-5%. Although, in a period of the late teens, aggressive lenders brought mortgage rates down under 3%. Imagine that? Under 3%! Never would a boomer ever believe he would see such rates in his lifetime. Refi, refi, refi: that was the mantra. Mortgage holders rushed to refinance their 5,6, and 7% mortgages. Fees, who cares? Bankers loved the action; loved the cash flows; loved the "deal making". Mortgage brokers got fat and sassy. Covid arrived and things took on a different cast.

        Hmmmm. Now what?  No more home buying; no more work; no more money in motion. Ooops. Inflation was discovered after the White House, with support of major economists, opened the money spigot and flooded the nation with cash. Have a disaster? We'll send cash. Need public health programs, we'll send cash. High unemployment in your town, we'll send cash. Don't worry about inflation; this is temporary, a Covid response mechanism. That's all. And then, Jerome Powell announced that we have "Inflation". Real this time. Rates must be raised. The FED will oversee the new rate increases that will suggest that the FED will do everything to stop inflation in its tracks. 1/2 point here, 1/2 point there, everywhere a half point. Hmmmmm. What about the bonds? Yes, those bonds owned by all those banks.

     Silicon Valley Bank: Goodbye. Signature Bank: Goodbye. First Republic Bank, Goodbye. And, there will be more fallout, sure.

Have a nice Monday morning. May 1, 2023. MAYDAY.