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

Margo Martindale said:
The majority of tech stocks have been way overvalued for a while now. It was only as matter of time
Click to expand...
The key issue with tech stocks today is the exact issue that it was with the first Dot-Com bubble: what is the actual tangible value of the goods and/or service that these companies provide? More often than not, the answer is "nothing."
 
  • Agree
  • Like
  • Semper Fidelis
Reactions: Knight of the Rope, Make Anime Illegal, Iwasamwillbe and 21 others
FuckedOffToff said:
I wonder if this will hit Honeycomb.io at all?🤔
Click to expand...
Quite probable. They are founded and based in the bay area and SVB pretty much almost has a de-facto monopoly on banking for tech startups.
Their business model is to offer startups cheap loans as a percentage of how much funding they have raised which basically means that if you raise x amount of money then for very cheap you can get a loan of y amount of money.
So many/all startups opt for this basically free money.

The drawback though is that in order to get these loans you have to use SVB for ALL you banking. ALL the accounts for the company as well as ALL the accounts for the founders. And that is going to hurt, big time.

Since H.IO seems to have ~150 engineers, with silicon valley salaries I guess that they will have a payroll of 3-5M$ per month.
 
Last edited:
  • Informative
  • Agree
  • Semper Fidelis
Reactions: lurking for the deets, BBChannel, Iwasamwillbe and 18 others
A lot of the big tech boy's have money invested in this bank so of course the Guberment will bail them out despite the fact 90% of the banks loans are a joke to retarded tech start ups that would never have made a dime anyway.

Daddy Biden will step in to make sure the soy boi's who sank money into the tech bank will get their money back. Can't have the tech boi's unhappy after all as the Dem's need them on board to keep fucking over America.
 
  • Autistic
  • Feels
  • Dumb
Reactions: Staffy, Roland TB-303, pikachudidnothingwrong and 6 others
Mikoyan said:
Because of this...

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.
Click to expand...
50% of tech sector Venture Capital appears to have been involved wigh SVB. Any business that lives off of VC will be truly fucked. Not just the startups. Some of these fuckers, like the media companies are on third fourth or fifth rounds of VC with no profit in site.
 
  • Informative
  • Thunk-Provoking
  • Like
Reactions: Iwasamwillbe, Elwood P. Dowd, Toolbox and 11 others
Lots of useless SV workers at all of these startups that make zero profit are going to start getting reality checks.
For now it looks like the age of cheap/free money is over.

Everyone remember the smug SV scum saying "Learn To Code"?
 
Last edited:
  • Like
  • Agree
  • Optimistic
Reactions: Iwasamwillbe, The Ghost of Kviv, Smar Mijou and 13 others
Otterly said:
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.
Click to expand...
Virtually the entirety of many Western economies have been on life support, most notably since 2008 when the rot should've been allowed to be cut off and disposed of instead they opted to keep it alive primarily through dumbfuck levels of low interest rates. The meltdown will be a sight to behold, biblical.

Unfortunately you just know this will somehow end up with Vanguard and Blackrock owning 99.99% of all hard assets so the rest of us can own nothing and rent from their shareholders.
 
  • Like
  • Agree
  • Thunk-Provoking
Reactions: Iwasamwillbe, The Ghost of Kviv, Corpun and 26 others
The Punished Mitch said:
Virtually the entirety of many Western economies have been on life support, most notably since 2008 when the rot should've been allowed to be cut off and disposed of instead they opted to keep it alive primarily through dumbfuck levels of low interest rates. The meltdown will be a sight to behold, biblical.

Unfortunately you just know this will somehow end up with Vanguard and Blackrock owning 99.99% of all hard assets so the rest of us can own nothing and rent from their shareholders.
Click to expand...
The uber rich will fuck off to their remote compounds on miles of land and live happily behind armed security while the rest of us get to pay the bill. Just like South Africa and Brazil.
 
  • Feels
  • Like
  • Agree
Reactions: Iwasamwillbe, The Ghost of Kviv, Corpun and 16 others
TheGuntinator said:
Do I invest or sell?
Click to expand...
If you are effected, you will find that the FDIC has made it quite impossible for you to do anything with "your money" and would like to inform you that is a grandiose term... Everyone else should kick back and laugh as Silicon Valley self-immolates. Speaking of, let's hear it for Roku who barely even hesitated to snatch that kerosene from SVB on the hop!
1678489543664.png
Some advice: if your employer couldn't make payroll today take this as notice you've been working at a circus for a bunch of clowns. Working one more second uncompensated is giving your labor away. The C-level/board will be far more concerned with not going bankrupt than any single employee and many will fail. Edit: /r/news sneeding
1678490899986.png

Looks like an entire payroll provider is kill. A predditor's partner is deebly goncerned:
1678491061525.png
Redditor's fren tries to get inb4 the freeze. Goes insolvent instead:
1678491312794.png
Retired redditor rages over transaction reversal
1678491440778.png
MORE SALT FOR THE SALT GOD, MORE SHAKERS FOR THE SHAKER THRONE!
1678491582299.png
You know it's real when the suicide hotline gets posted.
1678491796948.png
DH's startup... GONE!
1678491897150.png
 
Last edited:
  • Informative
  • Like
  • Winner
Reactions: lurking for the deets, Knight of the Rope, Iwasamwillbe and 26 others
You must log in or register to reply here.
Back