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

[Stoneheart]

I'd advise other Kiwis to start pulling at least SOME of your dough just in case the domino effect gets really bad.

Why? anything that isnt milk money or rent money is already in a safe bank... having your money in the same bank as alot of realy realy bad people has its perks,, no banker in Liechtenstein will take stupid risks because some Cartelboss or Warlord will send people to cut of their heads if they destroy the bank and hose all people with an account there.

 

[MadStan]

You must must not under any circumstance do more than the FDIC insurance and SVB as well as several other banks must be allowed to fail.

Any form of bailout or making whole the depositors of SVB or the other banks in line for failure will have even worse consequence.

These interest rates are going to cause more failures. That is kind of the point of them - subdue economic activity and weed out the zombie banks and companies.

This is what medicine looks like. Doesn’t taste good; but it’s needed. There are no pain killer prescriptions under this medical regime for our economy - those were handed out last year and there are no prescription refills allowed

 

[Phalanges Mycologist]

Lol. Bitcoin isn’t going to save you buddy.

This whole mess that's shaping up will put pay to the lie that Crypto is a thing, FIAT has a value to it even if intangible that works in the modern world due to silly metrics but silly metics we all trust, and even then governments still have real resource reserves that imaginary money doesn't have.


I've been talking to someone I know personally offline who's a banker for one of the big invetment banks and he's cashing out cashing out hard and he thinks that this will go on far far longer than the 08 crisis.

 

[Cpl. Long Dong Silver]

There aren't enough founder reactions to TOTAL STARTUP DEATH in this thread. I'll start.
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This woman was an intern in 2013 and in 2023 has somehow scammed her way to millions of investment dollars.

In 2013 I was humping a rucksack in RC East looking for Taliban, and in 2023 I'm just happy to make six figures.

Truly we live in clown world.

What I hate is that all the comments are supporting her. You know why? Because it's the one social media where your job is visible to everyone. I want to post "option 9 be an adult" but I'm sure I'd have an HR email waiting for me Monday.

 

[macrodegenerate]

"I'll let my investors know that I'll keep trying my best and I'll need them to cover my ass, and then I'll go get high."
Not very encouraging, I hope some of those investors are smart enough to pull their money out.

My favorite part is that she thinks all of her "A team" is going to be around in a month. There are hundreds of cities in the U.S. outside of silicon valley with thousands of companies looking for talent. Even with a freeze, the issue is finding good ones, and her A team probably are good ones.

Why the fuck would you stay in a state that's just kicked its downfall into 5th gear and hit the nitro?

 

[make_it_so]

Anyone else checking their banks' home pages to see if they've put up any messages, or if they've sent out any emails, trying to reassure customers that their money is safe?

It could be they're keeping radio silent until they see how things play out tomorrow.

 

[Otterly]

I’m interested (and a little nervous) to see how this affects the pharma and biotech world. A LOT of the work services companies do is tied up in smaller biotechs, small to mid sized starts ups etc. it’s not all gigantic contracts with big pharmas - maybe 30% but sometimes a lot more is in these smaller companies. this could have a huge knock on effect. Ten small biotechs go under, the companies that were developing their products suddenly have a huge hole in the balance sheet, and now the big CROs and pharmas are laying people off too.
In drug development VERY many of the drugs are discovered and started by small startups. The big players all got rid of much of their R and D Becasue it was expensive and now they just buy up anyone with a promising product rather than discover it themselves.

 

[MadStan]

This whole mess that's shaping up will put pay to the lie that Crypto is a thing, FIAT has a value to it even if intangible that works in the modern world due to silly metrics but silly metics we all trust, and even then governments still have real resource reserves that imaginary money doesn't have.


I've been talking to someone I know personally offline who's a banker for one of the big invetment banks and he's cashing out cashing out hard and he thinks that this will go on far far longer than the 08 crisis.

Yeah. Like I said BTC isn’t going to save you.

Get the hint - there is LESS money in the world free right now and those who have it will be in a better position during a downturn.

But go ahead and buy all the BTC you like; you wont see people knocking on your door in 12 months to buy it and throwing their USD at you for it. In a financial crisis USD becomes worth MORE, not less; and we can argue fiat all we like but the guy at the grocery store wants fiat and not your BTC; it you can argue with Apu about that.

But whatever works for you works for you. I wish you the best no matter your choices.

 

[macrodegenerate]

I have a question can articles and news threads get a feature? @Null given how fast this thread is moving maybe push it up?

Edit:I really think it has potential. Laughing at over entitled silicon valley people that are the victims of their own hubris seems the site's style.

 

[RodgerDodger]

There aren't enough founder reactions to TOTAL STARTUP DEATH in this thread. I'll start.
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Snowflakes are designed to melt away under direct sunlight. And California has a lot of snowflakes this year.

 

[Mikoyan]

There aren't enough founder reactions to TOTAL STARTUP DEATH in this thread. I'll start.
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In other words, firing people and doing trendy drugs. The true startup culture laid bare. This shit is why I got the fuck out.

 

[HackerX]

I cannot believe she posted about doing shrooms on LinkedIn. It’s so retarded that I had to read it several times to parse what she meant because surely - surely! - it’s not that?

It’s that. Her investors will see it! This is why I’m in the “burn it all down” camp, these people must be stopped.

Yeah. I'm in the camp where there is a very explicit time and place where psychedelics are beneficial.

However, a business 'leader' bloviating about it in a professional environment is not one of those explicit situations. It's only an indication that something is wrong with them.

 

[Mikoyan]

Yeah. I'm in the camp where there is a very explicit time and place where psychedelics are beneficial.

However, a business 'leader' bloviating about it in a professional environment is not one of those explicit situations. It's only an indication that something is wrong with them.

In the valley they've had this thing for years now about pushing themselves with drugs. Adderalmaxxing is old hat, fucking acid was the wave after that and now shrooms are the big trend.

In the tech cult, this person will experience absolutely zero repercussions for this.

 

[George Lucas]

I have a question can articles and news threads get a feature? @Null given how fast this thread is moving maybe push it up?

Edit:I really think it has potential. Laughing at over entitled silicon valley people that are the victims of their own hubris seems the site's style.

There needs to be a happenings thread.

 

[macrodegenerate]

There needs to be a happenings thread.

Could this get moved there? At this point it's exceeded a news story. We are potentially witnessing the start of a 2008 level crisis and markets open in less than 24 hours in the US.

I know I'm sperggy on this, but this has been one of the funniest threads I've been in since the LFJ and Keffels threads.

 

[MadStan]

As Warren Buffet said “when the tide goes out you see who has been swimming naked”. And as proof of financial position demands spread there will be some other institutions and banks caught out which will then cause effects onto other institutions that were technically “OK” but due to the increased stress will then “not be OK”. This is how contagion starts and we are witness to it this week.

The global banking leaders will present a cool front but go back and check their private toilet because right now they are shiting bricks

 

[macrodegenerate]

Thanks mods.

 

[Null]

prediction: nothing will happen.

 

[HackerX]

In the valley they've had this thing for years now about pushing themselves with drugs. Adderalmaxxing is old hat, fucking acid was the wave after that and now shrooms are the big trend.

In the tech cult, this person will experience absolutely zero repercussions for this.

Eh, Adderall is sadistic because it enables the globohomo mentality 'always productive all the time' to benefit employers.

Acid, lsd, etc., aren't quite as except it likely played a role in A LOT of people thinking "maybe we should let men dress like women". That and hwite altruism is not a combo that has worked out well.

 

[Bill The Fucker]

I’m interested (and a little nervous) to see how this affects the pharma and biotech world. A LOT of the work services companies do is tied up in smaller biotechs, small to mid sized starts ups etc. it’s not all gigantic contracts with big pharmas - maybe 30% but sometimes a lot more is in these smaller companies.

If your company was already circling the drain and living on the edge, the few days of not having access to funds could easily be a killing blow. Everyone else will likely make it out ok between the initial dividend payment from the FDIC and bridge loans shoring up any differences while the dust settles.

The most likely outcome is a big boy bank acquiring $160B in new accounts for a song, whether that happens by EOD today or EOW this week after they negotiate for a better deal. Depositors will likely keep their money, bond holders will eat a little shit, and equity holders will get fucked without lube.

The bigger problem at the moment is people panicking. I could easily see companies either buying into the "sky is falling" narrative and trying to get ahead of it by reducing headcount, or people just using it as an excuse to go through with already planned reductions.