5/9 Banks Troubles far from over
Banks are sus right now
Reflection
I’ve consistently done something in my life that has allowed for me to find guidance and wisdom. It’s been studying the great minds of human history and trying to understand the struggles they went through, how they did it and whether they went through the same stuff I did. I think often times when we look back on history, it is so often written as though every move was known in the sense of he/she did A, since they did A they then prepared for B, and B occurred so they countered with C. In reality, history in the present moment of making it is often unclear and shrouded in confusion with most things falling into place. There should not be anxiety if you feel lost or unclear of where things are going. What I have often found especially in the Stoics with people like Marcus Aurelius, THE Roman Emperor himself, he struggled. There were days in his journal that he wrote, I cannot get out of bed nor bring myself to get anything done.
The illusion that the past greats were invincible is mere myth and it should be remembered when you find yourself struggling. There are days where I simply have no energy, every muscle aches and my Brain feels clouded.
Nevertheless, there are strategies that can be executed to overcome this. I have found breaking my tasks for the day down into 3 main objectives to be an excellent hack. Waking up early and going to work while you are still sleepy is remarkably productive mostly because you do not have the urge to do other distracting things, such as watch TV, go to the pool, talk with friends. There is quiet and solitude in the early morning that allows for all tasks to be completed quickly and without struggle. I’ve also noticed that prioritizing upcoming deadlines is effective and thinking about what is the first step for each and when the first step must be done by helps gets things moving along. More importantly and this cannot always be the case but you should try to make it, make sure it is responsibilities you care about. You need to find the deep reason as to why you care about what you’re doing and let that drive you. There is nothing more compelling than tying something to your passion. Passion is often the strongest weapon we have in our toolbelt. We are willing to work for days on things we are passionate about, and if you find that there is nothing to be passionate about in what you are doing, figure out how to spend less time on it and getting to do things you are passionate for. I might not have strength to take the trash out, but I know if I do it early before my brain can really think, I will have longer amounts of time searching for the next best play to do in the markets. I try to remind myself quickly how things will connect back to my passion and I think if you are able to do that, good things follow because not only is your house in order, but you are finding a way to thrive in something that brings colour and meaning to your life.
Markets
Banks say they’re doing better but are they really? What even happened last week with WAL?
WAL occurred when Powell spoke and odd options were place on it midstream. 27.5p was the strike and the following day it hit that but then a hit piece within the
financialtimes circulated that WAL was looking at a potential sale because its loans were underwater. This was clearly nefarious as it was trying to spark a nonexistent bank run. In response, the rumor then circulated that short selling would be banned clearly in an attempt to quell the bank frenzy that was ongoing. This weekend alone, Buffett commented that a bank collapse would’ve been catastrophic for the economy if the FDIC had not stepped in.
This still has most people weary including myself for the following 4 reasons (including SLOOS Bank Lending) :
We have the debt ceiling impasse looming w the treasury claiming it will not be able to continue to support any operations after June 1
FDIC continues to try to share the disaster and insuring accounts over 250k with larger banks