Recent comments in /f/wallstreetbets

megaultraman OP t1_jeaik93 wrote

Yes and that amount, less liabilities, is their profit margin. In total last year, that amount was $5 billion. But they now have $70 billion less in assets! That is what deposits are to a bank: liabilities. Otherwise, where do they get the money to give them their deposits back?

And instead of selling those assets for a massive loss, they borrowed against them! From the Fed. At 5%. So now they have 40% less assets to pay an extra $5 billion dollars in interest payments.

The question then, and the point of this post, is WHERE ARE THEY GETTING THAT MONEY?

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Wasingtheisofwas OP t1_jeafn7h wrote

I don’t have the skills to write a DD. Basically, it’s now trading at less than 2X earnings. If they can recover from the bank runs and come out solvent on the other side, I truly believe that this stock will recover over the next 6 months-2 years. There’s a possibility of a 10x return on the outside and a 3-4X return doesn’t seem crazy either.

Also, we really want to build an expansion on our house. If this 5Xs that gets us halfway there in our budget

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megaultraman OP t1_jeaelmd wrote

That $30 billion was just a token vote of confidence and only has a lifespan of 3 months. But maybe JPM et al will loan them $30 billion at rock bottom rates indefinitely, but I doubt it. Then it's back to the discount window for them.

So they are going to blow through all their cash and sell their loans at a loss when they can just borrow the damn money and use that to make money instead? I don't hear about anybody liquidating assets to pay back the Fed, do you?

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TF_Sally t1_jeae9ec wrote

I managed to submit a deeply ITM spy put order for less than the bid price and took a screenshot of it

I submitted a help desk ticket and threw in some language of volatile of finra best price duty or some such

They offered me $900 which was about my loss amount and I took that shit immediately

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