Is it just me or is this place acting super weird lately?
15 replies (most recent on top)
Schwab bet big against an inflationary economy similar to the catastrophe in 'Margin Call.' Employees are punished ever since - even those that drank the kool-aid. The weird vibes are due to the opium inhalation to numb themselves to the losses on their client and asset portfolios. If you have a desk or office, I suggest you start emptying out your desk/office so they won't have to do it for you after sitting you down for your final 'difficult meeting.'
There will be losses on treasuries because Schwab has to sell those lower yielding at a loss to retain client assets with raising the money market yields to be competitive. Buy high and sell at a loss to keep assets liquid to make up for raising interest rates and to have cash available for clients who are transferring their funds to higher yielding products. No win situation.
The Fed is not going to lower interest rates anytime soon; Peter, Walt and the EC in their infinite wisdom bet against what a high school senior would do and bought long term Treasuries like the id--ts at Silicone Valley Bank.
Silicone Valley, is that where they manufacture the br---t implants?
Weird? Maybe. As d-mb & dysfunctional as ever? Yes.
That is why I said IF they had bought 20 year treasuries at 4.75%. If. Only if. So what DID they do? Buy 30 year treasuries at 1.375% back in 2020??? That would be kinda disastrous. I meen, I dun no.
It’s been weird(er).
@@3boq+1sl49Afx
'If they had bought 20 year treasuries at 4.75%, it actually isn't that bad.
Yeah, except that is NOT what happened.
Did this happen??
Regarding betting on or against the treasuries, as long as they can hold on the bonds without selling until maturity, there will be no losses. The loss is in the potential of lost interest rate and money they could have made. If they had bought 20 year treasuries at 4.75%, it actually isn't that bad.
And Monday morning, some id--t from PR will post about how the laid off employees need to move on and stop trying to poison the well. If that's not the best indication of the current state!
The coil spring went from broken to destroyed. The Fed is not going to lower interest rates anytime soon; Peter, Walt and the EC in their infinite wisdom bet against what a high school senior would do and bought long term Treasuries like the id--ts at Silicone Valley Bank. The company is still in and shape and losing money and will likely have another round of layoffs and the EC will give themselves another raise.
It’s been culturally weird from day 1.
The tension mounts daily. Whether it’s the impending layoffs, survivor’s remorse, close-minded RTO, disingenuous show-n-tells, cult worshippers, boot-lickers, brown-nosers, Chuck’s proof-of-life, empty stock options, head-scratching reorgs, poor labor market, or epic blamestorming sessions… the vibe went from dismal to weird over the last few weeks. OP is right, the weirdness is palpable. A literal circus - replete with elephants and clowns - could parade through our floor every Wednesday, and I wouldn’t bat an eye.
If you mean cult when you say weird, Schwab has always been a cult
It’s a Mickey Mouse organization run by Walt. It’s been weird for years. But, yes, it is getting not better.