First Republic Bank down 44%

[xsn10s]

First Republic falls nearly 50% to record low after reporting massive deposit drop

The decline comes after the bank's first quarter earnings report, which showed that First Republic's deposits shrank by 40.8% during the quarter.

www.cnbc.com

 

[MtPockets]

Despite what the talking heads say, it seems like it's only a matter of time.

In the end, a hard reset is maybe what we need? Wages will never go up to account for the inflation we've been seeing...

 

[jessej]

a hard reset

Used to fear it. Now I welcome the idea. The snowflakes melt quickly with no AC

 

[jessej]

But if you're a gambler……..buy the dip.

 

[xsn10s]

I doubt the children here would be able to take a "hard reset". So if any of you have kids or grandkids you may want to rethink this idea.

 

[jessej]

In our nation, Population would decline 70 percent in the first year. Just my guess.

 

[dfanonymous]

I doubt the children here would be able to take a "hard reset". So if any of you have kids or grandkids you may want to rethink this idea.

The world is full of cruelness and uncertainty.

Ben Franklin once said, "They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety."

It's been a long time coming

 

[xsn10s]

The world is full of cruelness and uncertainty.

Ben Franklin once said, "They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety."

It's been a long time coming

It might be. I wouldn't welcome or encourage it.

 

[xsn10s]

A "hard reset" is vague to me. But my thinking is it would include us losing the dollar as the world's reserve currency. So any dollars saved or earned would be worth pennies in the future. Instead of working to go to Disneyland we could be working just for our next meal.

 

[jessej]

My idea of a hard reset is a world wide EMP. How much weight would tiktak and fakebook influencers carry after that.

 

[jessej]

Whew. The first 30 minutes and I lost a buck a share.

 

[epags]

First Republic falls nearly 50% to record low after reporting massive deposit drop

The decline comes after the bank's first quarter earnings report, which showed that First Republic's deposits shrank by 40.8% during the quarter.

www.cnbc.com

A somewhat simplified explanation is that First Republic's (a small bank) depositors started to withdrew their money they had on deposit and the bank did not have enough cash to give them. The bank then needed to borrow money at a high interest rate, killing their profits. Stockholders get worried and start selling their shares in the company which in turn creates the headline which cause depositors to withdraw even more of their deposits.
Itn this case, he world is not coming to an end but that (small) bank may be coming to an end. In theory, bigger banks tend to be more conservative and have enough cash to cover similar withdrawls.
Canadian banks, for example, are forced to have larger reserves (dictated by their government) and depositors feel more secure and don't cause a 'run on the bank'.
The moral of this story is don't put your money where you are 'guaranteed' a high rate of return.....if it is too good to be true...well you know the rest.

 

[jessej]

I hope they don't end until I sell my shares at a 30 percent gain minimum.

 

[MtPockets]

A "hard reset" is vague to me. But my thinking is it would include us losing the dollar as the world's reserve currency.

My idea of a hard reset is '07-'09 all over again.
God help us all if Yuan ever takes over as the currency standard.