hd95489

It may be true, depending on how low the bar for reserves was set it’s possible a lot of banks are sitting around as zombies

First SVB was effectively insolvent way before they had a run. There are many other bank with the same problem.

Not having to mark to market doesn’t make you any less insolvent it just makes you a zombie bank

A lot of those jobs exist for legal compliance reasons and are cost center. Every company in the world wants to make them as shitty and cheap as possible but remain compliant. Right now the floor is minimum wage but soon it will be gpt chat

You can you just choose to treat them as infants for insurance and liability reasons

I was thinking gravity and atmospheric assists to get delta v required. You have to do something complex to pull this off. Or blow off a small piece to deflect the main bit and capture a small artifact

I’m assuming it’s too risky to let them clip the atmosphere to provide the delta v?

Even if we break it up and capture a chunk it would be both a huge wealth of knowledge and if the chunks was big enough it could be extremely useful construct material

Can we capture it?

Terrible employees have lots of practice

They should have another factor for government shenanigans where a entity defaults but the cds isn’t recognized as a default

They aren’t a drop in replacement. Heat pumps need large ducts or you won’t have enough flow because the air in the ducts is not that much hotter than outside air. Delta t is low

How would you ensure that spares are available in the event a model is discontinued or the company shuts down? It’s likely there will be few parts or trained techs in that case.

They don’t itemize that out but the existing electrical line has to be retrofitted to current code and some duct work needs modified to fit a new unit. Nothing crazy though, going from one heat pump to a new one. A drop in replacement was 4k unit and 8k costs so 6k listed here seems super low

Your install costs are super low. Is there some sort of innovation that would drastically reduce install costs? We just got quoted for a conventional heat pump install in Seattle 2/3 of the cost is installation. The unit costs like 6-8k but to get an installer to install its 18-22k. That’s with 5 quotes so I don’t think it’s abnormal. How do you plan to keep install costs so low at 6k

I mean if you can get away with it for over a year then you probably came out ahead

It’s a true solvency issue. They could have announced this before the bank collapsed and it still would have collapsed eventually because assets were less than liabilities

If they don’t have required reserves they don’t need any deposits.

Poor people will get no interest on deposits to bail out the rich.

At the end of the day did everyone walk out of the deal knowing they made a boat load of money or were folks wondering if they would be able to offload and hedge the garbage they bought fast enough.

Only a few chosen players get to bid so it’s going to come with some haircut off market

So you would expect 8% cuts? Or 2%. I could see 8%-10 being about right.

How much of a haircut do the assets take during the process. I’m assuming nobody is paying market rate so how much under is the bid? Like 80% or like 30-40%

Thanks followed both of be those. Looks like #FRB might be next

What was there in Q3 that could have tipped folks off?

Agreed, pegging it like that will cause a run unless they are so flush with short term assets that they can handle it

At 1:1 take the money and run. Seems like that’s a recipe for a real run

Yeah but treasures lost money last year. If usdc has duration risk which I’m sure they do they are probably under capitalized. What could easily happen is an alternate stable coin comes in offer say 4% while investing in T-bills and pocketing the one %. People will then cash out of usdc and move to something better forcing usdc to fail

Put down a large retainer on a legal team. They were already insolvent. You can’t just solve insolvency

Yields yeah

Would you take that bet? It’s likely that the exposure is similar in nature for their other assets