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

[YachieKicchou]

I have friends in the tech industry, etc. Before this happened there was a lot of reports that companies were absolutely certain that 2023 was going to be a recession year, or would put us close enough to one that it'd really kick off in 2024.
As a result, it seemed as though a lot of companies were making layoffs of everyone they didn't need or was expendable and then close up recruiting. You also saw people on tiktok make videos that got popular talking about how they had great pay and did very little work, which would then blowup followed by reports of mass-layoffs of 'non-essential staff' at those companies. This was all at tech places too, both startups or established companies.

This really all of that back into perspective.
Also get fucked lmao

 

[Pro. Memer]

Are they finally going to let the looming depression happen, or will they just increase the money supply 10 fold again, putting it off another few whiles.

 

[WelfareNiggerQueen]

Prediction. JP Morgan and Credit Suisse are next.

God Bless the ghost of Andrew Jackson. Digital dollar globohomo is hopefully kill.

 

[AN/ALR56]

I have friends in the tech industry, etc. Before this happened there was a lot of reports that companies were absolutely certain that 2023 was going to be a recession year, or would put us close enough to one that it'd really kick off in 2024.
As a result, it seemed as though a lot of companies were making layoffs of everyone they didn't need or was expendable and then close up recruiting. You also saw people on tiktok make videos that got popular talking about how they had great pay and did very little work, which would then blowup followed by reports of mass-layoffs of 'non-essential staff' at those companies. This was all at tech places too, both startups or established companies.

This really all of that back into perspective.
Also get fucked lmao

Tech is is a bubble right now, too much startups, too much retarded rich investors and retail ones pumping cash into the "next Tesla, the next Apple!".


I mean how many big tech scams we got in the past few years? We got Theranos, Nikola motors, Lordstown, we work, that German paypal that i forgot the name , crypto, where basically every year a dozen billion dollar exchange collapses.

Now we got a dozen AI startups,a dozen apps that you can't even describe how they work, everyone and their mother trying to be the next Tesla and getting more market capitalization than Ford without delivering a single car, everyone and their dad putting cash into making chip factories that won't go online on the shortage years, but on the next 5 years, where everyone else will also have built a 20 billion dollar chip factory that will never repay itself because everyone got now a chip glut.

 

[Manul Otocolobus]

No it's a stock market traded bundle of stocks/bonds/options. The bundle consists of investments that are the opposite of what the market guru Jim Cramer recommends.

I was hoping I wouldn't have to explain it was a joke. So close. Oh well, there is always next time.

...most that SVB invested tiny amounts into required exclusive asset management clauses in their contracts...

Jebus. If that isn't fucking anti-trust behavior, I don't know what is. That should be patently illegal.

 

[Uranus Pink]

Crash the fucking markets and start laying off feds and state workers to balance the budget.

As they're the largest living Democratic voting block in the country they can not be fired en masse. Not when they can sent every federal and state judicial agency pension whore jackboot along with the IRS to shake down the taxpayers for more money.

 

[Manul Otocolobus]

While we all root for the collapse of the big gay, I'm feeling sorry and bad for the thousands upon thousands that will get fucked or the millions if this gets a big contagion.
I'd say RIP to Ukraine and Taiwan if there's a bailout, no chance in hell that Biden will be able to fiscally increase the defense budget while there's a shit ton of disasters at home to deal with.

EDITramer acts like a drunken gambler dad that bet his son's tuition on a 7-2 deck and lost the bluff:

Why does Kramer sounds like he is dying?

I would tell these fuckers to "JUMP! You can make it!"...

Nah, you yell "DO A FLIP!!"

 

[reptile baht spaniard rid]

Tech is is a bubble right now, too much startups, too much retarded rich investors and retail ones pumping cash into the "next Tesla, the next Apple!".


I mean how many big tech scams we got in the past few years? We got Theranos, Nikola motors, Lordstown, we work, that German paypal that i forgot the name , crypto, where basically every year a dozen billion dollar exchange collapses.

Now we got a dozen AI startups,a dozen apps that you can't even describe how they work, everyone and their mother trying to be the next Tesla and getting more market capitalization than Ford without delivering a single car, everyone and their dad putting cash into making chip factories that won't go online on the shortage years, but on the next 5 years, where everyone else will also have built a 20 billion dollar chip factory that will never repay itself because everyone got now a chip glut.

it really feels like the dotcom bubble years more than the mortgage implosion years, and this time around it's going to be major companies that are going to feel the hurt

EVERYTHING Large tech is like 100% advertizing, it's nuts, and that shit will dry up REAL FAST

To be fair to the roomba in human form, apparently the UK SVB was a separate entity that hasn’t gone tits up.

Yet.

disregard, I suck the BALLS of the FDIC (I will never get over this)

SVB Collapse Contagion: UK Business to Be Declared Insolvent by BOE -…

archived 11 Mar 2023 00:31:06 UTC

archive.ph

it's literally following the FTX playbook lol

 

[Cpl. Long Dong Silver]

View attachment 4750018

Nice shopping list for Monday. I already have some Rocket Lab

 

[870EVO]

Are they finally going to let the looming depression happen, or will they just increase the money supply 10 fold again, putting it off another few whiles.

 

[A Repopulated Embassy]

If you’re just catching up, here’s what happened: Silicon Valley Bank lost $1.8 billion in the sale of U.S. treasuries and mortgage-backed securities that it had invested in, owing to rising interest rates. The bank is also contending with shrinking customer deposits, given that its customer base of largely startups has far less money right now to park at a financial institution.

I'm stuck on this statement. Does this mean that Silicon Valley Bank was shut down because they lost money on government-issued bonds?

A government product led to the downfall of a bank? That's unheard-of for me.

 

[Phalanges Mycologist]

Looks like Etsy was hit as well

Etsy Delays Seller Payouts After Silicon Valley Bank Collapse

Etsy has confirmed that it had to delay payouts to sellers due to the FDIC having to take over Silicon Valley Bank on Friday afternoon.

www.eseller365.com

My last payout from them cleared late last night, but I've just gone and unlisted everything and marked myself as taking a break I've got a bad feeling about this.

 

[FunPosting101]

Are they finally going to let the looming depression happen, or will they just increase the money supply 10 fold again, putting it off another few whiles.

No politician with half a brain (so not Biden, lol and lmao) will let a new depression happen on their watch. There's no better way to guarantee major electoral losses for their side of the political aisle.

 

[IAmNotAlpharius]

My last payout from them cleared late last night, but I've just gone and unlisted everything and marked myself as taking a break I've got a bad feeling about this.

Hope you can make it through this. I feel bad for anyone working for a startup. I have a few friends that may have issues getting their paychecks. Can’t imagine trying to work that out with mortgages or rent to pay.

 

[Maggots on a Train v2]

My last payout from them cleared late last night, but I've just gone and unlisted everything and marked myself as taking a break I've got a bad feeling about this.

Seems like a sensible move. etsy is a textbook example of a business run as a multi-million dollar hipster adult daycare for all the founders' friends. There's no telling how many regular consumers have money tied up in platforms that may be fucked.

 

[Super-Chevy454]

The guys of American Thinker posted a good rant about Silicon Valley bank.

https://www.americanthinker.com/blog/2023/03/fasten_your_money_belt_its_going_to_be_an_extremely_bumpy_few_years.html

March 11, 2023

Fasten your money belt — it's going to be an extremely bumpy few years​

By Ethel C. Fenig


Yesterday, along with many, many others, I mentioned a major financial concern:

The problems of two small banks on the West Coast are rippling across markets and causing new investor concerns about some of the country’s largest financial institutions.
Why? Three words: rising interest rates [italics added].
The Federal Reserve’s aggressive campaign to bring down inflation helped set the stage for major problems at two California lending institutions — SVB Financial (SIVB) and Silvergate Capital (SI) — as an outflow of deposits forced both to sell assets at a loss. Those assets were bonds.

BOOM! BOOM! POW! Friday it happened: Silicon Valley Bank (SVB), the U.S.'s 16th largest according to the Federal Reserve, collapsed — the second largest failure in U.S. banking history.
Silicon Valley is not a real geographical valley, but the area in northern California that is home to many high-tech, low-tech, middle-tech companies ranging from start-ups to established companies, many financed by SVB.

 

[Mr. Bung]

I'm seriously beginning to wonder if I should just forget about tech altogether and get a head start now in moving out to some remote mountains in the wilderness where I'll live out the rest of my days hunting, foraging, and growing my own food as I watch society burn to the ground...

 

[macrodegenerate]

I'm stuck on this statement. Does this mean that Silicon Valley Bank was shut down because they lost money on government-issued bonds?

A government product led to the downfall of a bank? That's unheard-of for me.

You can sell debt/bonds just like stocks on the secondary market. What they did was buy the bonds on the secondary market at a higher price than what they sold them for later on the secondary market. This resulted in a loss.

You also have the option to just hold a bond and take the dividend, but when the bonds returns are outclassed by inflation that becomes nonfeasible.

Treasuries have always been good products for investment. They are safe because they won't ever be defaulted on, and they are tax free.

The problem is current market conditions combined with a rapidly inflating currency. One of the basics of investment is that you want stability during a downturn and the potential for growth during a bull market. With the current recession, alot of investors started shifting into bonds for their stable dividends. The problem is that their dividend is too low compared to inflation, so people are going to start to liquidate them.

But the question nobody is asking is why the fuck would anyone would buy bonds at face directly from the government if they can be had for much lower on the secondary market?

We now have banks(not retail retards) trading treasury bonds in a race to the bottom to just recoup their buy expenses. These bonds cannot fail and the government will always pay on them, but nobody wants to actually buy them directly from the government anymore.

 

[Jet Fuel Johnny]

All I've got to say is:

Learn to mine coal, faggots.

 

[Pendinelli]

This is what happens when silicon valley lobbies so hard to avoid the usual checks on liquidity that every bank in the states has to pass. Another instances of valloid start up hubris getting munched by reality. Can't gent enough of this.