Bank Run Watch 2023 after Silicon Valley Bank shutdown - Over 97% of SVB's assets were not FDIC insured

[Forkknifegaymer]

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Why isn't this guy getting beat up every day by people who lost their money listening to him?

Cramer has consistently been one of the most incorrect investor advisors I’ve ever seen in my life

 

[Margo Martindale]

I’m hoping that Silicon Valley continues to get kicked in the teeth. This recession seems to be hitting them specifically.

The majority of tech stocks have been way overvalued for a while now. It was only as matter of time

 

[Bill The Fucker]

Any business/money people can tell me how concern I should be about my own investments (401k) if as far as I know it had no connections to this bank?

This shouldn't have a major impact on many publicly traded tech stocks. High interest rates with the forecast of them going even higher is what's dragging that sector down currently, this is mainly going to fuck over startups.

 

[AskeDead]

2 more weeks bros

 

[JustSomeDong]

Oh noes!!!!!
Anyways...

 

[kcbbq]

That's where the worst of the ZIRP malinvestment was concentrated. Raising interest rates to sustainable levels will do more to stimulate the economy in the long run than any of the QE bullshit or other policies over the past 15 years.

QE was because we couldn't get optimal inflation because Chinese currency manipulation meant they kept importing the inflation. While it screwed with growth a bit it meant shitloads of foreign debt was turned into domestic debt at a huge discount and China essentially picking up the tab as a consequence of very lame attempts at being an economic bully.

svb is different, it was hubris leading to failure. Basicly everything silicon valley.

 

[Agamemnon Busmalis]

QE was because we couldn't get optimal inflation because Chinese currency manipulation meant they kept importing the inflation. While it screwed with growth a bit it meant shitloads of foreign debt was turned into domestic debt at a huge discount and China essentially picking up the tab as a consequence of very lame attempts at being an economic bully.

svb is different, it was hubris leading to failure. Basicly everything silicon valley.

Oh, I was speaking about the tech industry itself. All of these startups that were fed free money are going under because they make no economic sense in an environment with sustainable interest rates.

 

[CognitiveDeficiency]

This is why I keep all my silver buried in a several ammo cans in a corner of my root cellar hidden beneath a bunch of paint cans.

 

[Mikoyan]

Oh, I was speaking about the tech industry itself. All of these startups that were fed free money are going under because they make no economic sense in an environment with sustainable interest rates.

Because of this...

It is unclear exactly how larger accounts or credit lines for companies will be impacted by the closure.

It isn't going to be clear for a bit exactly the impact. VC funds and startups who have their account at the bank (and didn't participate in the run ahead of time) may be in bad shape, depending on the particulars when the feds unfold everything.

It could be a factor in a wider SV slowdown, but it's unlikely to singlehandedly start a bay area implosion. Most VCs will be unaffected but I still think this will make it a bad time to start a funding round. Edit: It already was because the market's fucky, no guaranteed money on an IPO.

 

[reptile baht spaniard rid]

https://twitter.com/garrytan/status/1634286688922132481 (a)

couldn't be me, five star days!

hope it's truooooooo

 

[tehpope]

Next week is gonna be fun.

Just to show some downstream effects already manifesting. This is from camp.com, not really sure what they sell since their site is getting slammed by traffic at the moment.

At the top of their web page:
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I view this as nothing more than a fire sale before becoming insolvent, this company will not be able to make payroll either this week or next week, likely this company is now doomed since they will have zero way to acquire new merchandise.

 

[Stoneheart]

Oh dear. I hear murmurings about credit suisse doing some naughty things as well. Is this the start of something large and serious?

They akways do shady stuff, their issue right now is that they lost their talent to smaller banks while ramping up diversity hiring.

 

[Twinkletard]

This is dominoes. You're going to see a lot of tech companies fail as they all depend on one another for the most part.

 

[AN/ALR56]

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Why isn't this guy getting beat up every day by people who lost their money listening to him?

I remember back in '08 him telling you should buy Lehman and bear Stearns stock just a week before the collapse lol.

 

[The Last Stand]

Regulate the banks?

 

[Chickin BBQ]

lol, lmao. An old employer of mine can't make payroll today.
Glad I'm not in that shithole anymore.

 

[Otterly]

This is dominoes. You're going to see a lot of tech companies fail as they all depend on one another for the most part.

So much of it is artificial growth based on acquisition and low interest rates. Borrow, expand, capture other small companies and it looks like you’re growing and more money flows in. I see that even in my industry. I’m curious what kind of exposure biotech has to this. There’s a lot of US venture capital funding.

 

[Daddy's Little Kitten]

I can hear the soy screaming in the distance.

 

[Jonah Hill poster]

This and FTC really just goes to show that tech giants in Silicon Valley have no idea how investing and stocks work. It’s also interesting we have not heard much from Sam Bankman-Fried yet.

 

[FuckedOffToff]

I wonder if this will hit Honeycomb.io at all? Will Liz Dong Gong still be employed in a couple of months?