Global Depression 2022 - Time to do the Breadline Boogaloo!

Who is going to get hit the hardest?

  • North America

  • South America

  • Asia

  • Europe

  • Australia

  • Africa

  • The Middle East

  • Everyone's fucked

  • Nothing will happen

Results are only viewable after voting.
God's drunkest driver said:
The boom-bust cycle is deliberate. It benefits the banks, the ultra-rich, politicians, at the expense of the middle class. The poor remain poor, stagnant, and barely notice a difference, but the middle class gets shoved downward. A strong and mobile middle class is terrifying to the banker and politician, because if middle class people with middle class values become upwardly mobile in large numbers, they might be able to gain some power and enact actual change. Change which would deflate extreme wealth and market manipulation.
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Lol no, middle class values currently will only lead to the destruction of the middle class. The middle class has lost their minds.
 
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Angry Alt Right Nerd said:
Lol no, middle class values currently will only lead to the destruction of the middle class. The middle class has lost their minds.
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I agree. The modern middle class are chock full of strivers who want to prove to the upper class how they are good soldiers. In 2004 they voted Republican and talked about how good it was that Walmart was destroying small businesses because they can buy cheap Chink-made crap for a couple bucks cheaper than something made in America. In 2020 they voted Democrat and talked about how much they love niggers. Not too many middle class Americans have the luxury for independent thought, which is why they escape via consooming or sportsball watching. They shrink as a class because they put their trust in people who hate them.
 
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Remember kids: best economy ever!
 
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Vyse Inglebard said:
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Remember kids: best economy ever!
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Save the Loli said:
A failure to transition to the booming market for headscarves, turbans, and burqas.
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has less to do with the economy, the keyword here is retail.

retail, especially main street has been dying even before governments took a big dump on it with covid lockdowns. it's not really big news either because there has been a big struggling department store chain that pops up in the news every few months/years (bigger chances than a specialized store like fashion, which is also more difficult to go digital with, yet it's still dying): https://en.wikipedia.org/wiki/Galeria_Karstadt_Kaufhof
 
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Vyse Inglebard said:
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UH OH SPAGHETTI-OS!
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I looked that bank up, I guess it's a bank for tech startups and venture capital or something.


At SVB, unrealized losses had been piling up throughout last year and were visible to anyone reading its financial reports.

The Federal Deposit Insurance Corp. in February reported that U.S. banks’ unrealized losses on available-for-sale and held-to-maturity securities totaled $620 billion as of Dec. 31, up from $8 billion a year earlier before the Fed’s rate push began.
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Crypto stablecoins took a dump when Circle, the firm backing USD Coin, disclosed it wasn't able to pull its cash out of SVB in time and has $3.3 billion of USDC's backing trapped there.

This illustrates the fragility of both crypto and the regular banking system. Circle can temporarily back USDC with its money held outside SVB, to keep the peg, but it didn't matter, about 5% of USDC holders dumped and caused over 2 billion to be burned, knocking it off the peg. Once FUD sets in, no amount of assurance or cash can stop it. Same reason SVB itself failed.

The larger issue now is the $600 billion or so in unrealized losses held by FDIC insured banks. After hedges or bond maturities this is supposed to even out, but a lot of people are currently still stuck holding immature federal reserve bonds issued when the fed rate was zero, and they're virtually worthless. SVB was a high risk bank that issued loans to high risk startups. While the fed might make good on most of the corporate investments and securities the bank was holding, it's probably going to have to find a way to print more money to do so.

Those startups are all fucked, because they're cut off from their VC funds or the bank funds they were relying on to pay their staff, their rent, or the payments on the ball pit and organic ethically sourced leather chairs and artificial palm trees in their offices. A lot of them are going to collapse while waiting for the disbursement of funds. Secured loans and individual personal accounts will be paid out first, then all the VC money will be paid out to companies that were holding funds in there, as those companies become creditors. Equity investors or unsecured loan holders are likely fucked.

The bank's stock is toilet paper. Dividend payouts will be halted because creditors can demand those go to them. The tech sector was already weak and companies were doing layoffs. Add 2,000 faggot Silicon Valley VC startup company bankruptcies and all their now unemployed staff to the mix. Monday could be a bloodbath.
 
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F13 Key said:
Those startups are all fucked, because they're cut off from their VC funds or the bank funds they were relying on to pay their staff, their rent, or the payments on the ball pit and organic ethically sourced leather chairs and artificial palm trees in their offices. A lot of them are going to collapse while waiting for the disbursement of funds. Secured loans and individual personal accounts will be paid out first, then all the VC money will be paid out to companies that were holding funds in there, as those companies become creditors. Equity investors or unsecured loan holders are likely fucked.
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I know a lot are cheering about the techbro startups being fucked (there's already a few trying desperately to raise cash to keep their business afloat), but would this ripple out? The only losers I can tell are VC shitters and startup frauds.
 
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@F13 Key

Forget could be a bloodbath

Exchanges were halting shit at 1 AM and when that didn't stem the blood they just stopped processing trades

Wells Fargo apparently couldn't cash checks

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Someone in one of the like 25 twitter threads I have open explained that Wells Fargo's money was all tied up with shit related to the SVB thing, so they literally had no cash to hand out to direct deposits and paychecks.

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This sets off my satire bullshit detector but apparently Harry and Meghan had all their Netflix and Book money tied up in SVB, so they're dead broke. A followup post claims Oprah had half a billion.

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It's not just SVB, the only thing that stopped the entire thing from having a cascade effect across all of Wallstreet was they went full OI VEY SHUT IT DOWN

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Roku might be kill.
BlockFi is already in bankruptcy, so this just fucks them more
I suspect based on how many kiddos play Roblox that's nothing

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Bank fall down go boom: Ecofacists most affected

There are multiple pictures from SVB's employees linkedins and the like. They were woke as shit. Apparently didn't even have a risk manager for a while. Guess they should have.
 
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