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

[AnotherPleb]

Glass-Stegal was a law created created after the Great Depression that separated retail banking from investment banking. Used to be that you could be one or the other, but not both. The idea was that investment banks wouldn't be allowed to gamble with Federally insured money, putting taxpayers on the hook for their bad bets. It got repealed in the late 90s because banks couldn't stand not being allowed to gamble with other people's money.

It's debatable whether the repeal is the direct CAUSE of situations like the current one, but it makes the pain much worse than it would be otherwise.

There's also been very little gains for the layman thanks to the repeal so it only benefitted the financial class.

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JP Morgan's already calling Biden's handlers.

 

[WelperHelper99]

Glass-Stegal was a law created created after the Great Depression that separated retail banking from investment banking. Used to be that you could be one or the other, but not both. The idea was that investment banks wouldn't be allowed to gamble with Federally insured money, putting taxpayers on the hook for their bad bets. It got repealed in the late 90s because banks couldn't stand not being allowed to gamble with other people's money.

It's debatable whether the repeal is the direct CAUSE of situations like the current one, but it makes the pain much worse than it would be otherwise.

So basically they took the governor off the engine, and they've been redlining ever since. It sounds like a amazing law, born from much suffering. Someone got greedy.

 

[AnotherPleb]

So basically they took the governor off the engine, and they've been redlining ever since. It sounds like a amazing law, born from much suffering. Someone got greedy.

Greedy doesn't even begin to cover it. Funny thing, a lot of the people that oversaw that repeal are still in congress.

 

[WelperHelper99]

Greedy doesn't even begin to cover it. Funny thing, a lot of the people that oversaw that repeal are still in congress.

So the retards that ripped the governor out are also in charge of the money printer still? Fuck me. Also what about JP Morgan/Chase calling Biden's handlers?

 

[Honka Honka Burning Love]

Also what about JP Morgan/Chase calling Biden's handlers?

Oh that is easy

"Hey remember when we deplatformed people using the payment processor horseshit as an excuse? Yeah its time you return that favor."

 

[Caustic Gelatin]

As a dipshit wagey that is too smooth-brained to fully understand the machinations of the financial industry its weird seeing the sentiment range from "Don't worry about your shitty bank account, just sit back and watch as the jews PEOPLE OF BANKING squirm until daddy government bails their ass out" to "get you assless chaps and mad-max helmets out you are going to be patrolling the wasteland for human meat to eat come next Friday".

 

[WelperHelper99]

Oh that is easy

"Hey remember when we deplatformed people using the payment processor horseshit as an excuse? Yeah its time you return that favor."

So what you're saying is that all of them are about to eat shit tomorrow and even Chase is feeling the anal gaping right now?

 

[Honka Honka Burning Love]

So what you're saying is that all of them are about to eat shit tomorrow and even Chase is feeling the anal gaping right now?

In a Normal World i would say no, that the corrupt ass system would find a way to push the collapse off long enough that it would happen in the next Admin...but this is the Biden Admin so they will manage to not only be corrupt enough to try and push the shit show off..while making it instantly worse somehow.

 

[Zbk3VmLfujjzjxBd43tL]

Sounds like an absolute nothingburger. A few banks "failed" and begged Daddy Gubmint to help them, and Daddy Gubmint did what Daddy Gubmint always does, since Daddy Gubmint loves banks and hates normies. The only person who loses is Zelenski, since he might only get a 50 billion dollar allowance this month and not a 100 billion dollar allowance since his banker buddies needed the cash more.

 

[Terrifik]

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Cruse you Cramer

https://twitter.com/jimcramer/status/1634222320398086145

 

[mindlessobserver]

So what you're saying is that all of them are about to eat shit tomorrow and even Chase is feeling the anal gaping right now?

Its never that easy or quick. Right now we don't know what is going to happen tomorrow. What we do know however is not good. The Banks have backed their accounts payable with treasury bonds to an alarming degree, especially since the resale value of the bonds has dropped ever since the Fed started raising interest rates.

This means the banks do NOT have the ability to make good on their accounts if they get slammed by withdrawals all at once. To be fair, they never did to begin with thanks to Fractional reserve banking, but in this particular case its even worse due to the depreciated value of the T Bonds. That has reduced what they can actually pay out to dangerously low levels. And everyone knows it. So Monday is going to be the Prisoners dilemma economy wide.

All that needs to be done on Monday is for no major corporation, investment institution, or venture capitalist to withdraw their entire account. Every single one of them has to just stay still, and every single one of them will be fine. That is why the Government and CNBC (but I repeat myself) are busy shrieking about how "in control" they are.

But I know, and you know, that this is not how humans work. Someone is going to lose their nerve and run for the exit. And then the stampede will begin. At that point the US Government is going to have to bust out the really big guns. We shall see how they do.

 

[Fascist Kirk]

The Fed reserve, and the Treasury issued God Mode cheat to stop the entire House of cards to topple over an hour after markets open in the morning.

So the solution to the problem with these debts is to create more debt to cover the losses on the debt?

 

[AnotherPleb]

So the retards that ripped the governor out are also in charge of the money printer still? Fuck me. Also what about JP Morgan/Chase calling Biden's handlers?

"You bail us out or we stop helping you get around the Constitution. Or worse, we'll talk to every major news network and make those payment processor games the only news story until the next election."

Its never that easy or quick. Right now we don't know what is going to happen tomorrow. What we do know however is not good. The Banks have backed their accounts payable with treasury bonds to an alarming degree, especially since the resale value of the bonds has dropped ever since the Fed started raising interest rates.

This means the banks do NOT have the ability to make good on their accounts if they get slammed by withdrawals all at once. To be fair, they never did to begin with thanks to Fractional reserve banking, but in this particular case its even worse due to the depreciated value of the T Bonds. That has reduced what they can actually pay out to dangerously low levels. And everyone knows it. So Monday is going to be the Prisoners dilemma economy wide.

All that needs to be done on Monday is for no major corporation, investment institution, or venture capitalist to withdraw their entire account. Every single one of them has to just stay still, and every single one of them will be fine. That is why the Government and CNBC (but I repeat myself) are busy shrieking about how "in control" they are.

But I know, and you know, that this is not how humans work. Someone is going to lose their nerve and run for the exit. And then the stampede will begin. At that point the US Government is going to have to bust out the really big guns. We shall see how they do.

I can see the government doing a Robinhood and stopping people from withdrawing from banks.

So the solution to the problem with these debts is to create more debt to cover the losses on the debt?

Always has been. It's insane, but if you never intend to be the one holding the bag at the end it works wonderfully.

 

[RodgerDodger]

So what you're saying is that all of them are about to eat shit tomorrow and even Chase is feeling the anal gaping right now?

JP Morgan outright owns ALL of the Dems and most of the Repubs. If they're calling Biden it's to give instructions, not ask for favors. The first instruction is probably that "Jerome Powell must go. Nevermind that neither Congress or the President can Fire the Fed Chair. Either he's gone first thing Monday or he suicides by Tuesday"

 

[MadStan]

Well holly shit I just saw the announcement they will cover all deposits. I was wrong.

Remember this week as the week the government have a big rubber stamp for banks to take unmitigated risk without responsibility.

I am shocked. Utter disbelief that they’d be stupid enough to do this.

Time to become a banker I think - no penalty for gambling no matter the risk.

 

[namvata]

Ron Paul is either saying "I told you so" or he's in his room uncontrollably sobbing right now

 

[mindlessobserver]

JP Morgan outright owns ALL of the Dems and most of the Repubs. If they're calling Biden it's to give instructions, not ask for favors. The first instruction is probably that "Jerome Powell must go. Nevermind that neither Congress or the President can Fire the Fed Chair. Either he's gone first thing Monday or he suicides by Tuesday"

There was nothing the man could do. Either he raised interest rates and crashed the bond market, or he held the course and allowed inflation to run out of control and crashed the consumer market. I've compared the economy to the Chernobyl Reactor #4 for 2 years now and I stand by my assessment. There is NOTHING that can be done. The "best and brightest" attempted to leash the sun and they are screwed.

They will continue to do what they know, and pray that it works once more. What they should have done was allowed the financial industry to eat shit in 2008. It would have sucked. For everyone. But not as much as its going to suck when they finally lose control at this juncture. In 2008, there was no chance a bank like Wells Fargo or BoA would have gone down with the rest of the elite financial institutions. That is no longer the case, because as part of the 2008 bailout the Government did a shotgun marriage of the elite banks and the consumer banks. Now the systemic issues are fully integrated, nationwide, from top to bottom.

 

[namvata]

Well holly shit I just saw the announcement they will cover all deposits.

Read the fine print, they only allocated 25 billion to bail out depositors. There was 175 billion worth of deposits in SVB alone.

It's not gonna be enough, bloody Monday isn't canceled. Get the fuck out while you still can

 

[Breadbassket]

If this goes how it seems it will with limited government intervention, Hayek laughs.

 

[cybertoaster]

Ok real talk here.

For all the shithead woke fucks who been deleting and deplatforming us for over a decade now who are about to lose everything and be unemployeed for a looooong time: please don't call the suicide hotline, they wont help you, you know what will help?

The Kool You System.

Official song of the LGTV+OLED tech "worker":

Anyone hoping for a gov bailout right now is snorting premium uncut copium, they can't start printing money again without risking inflation in the triple digits or even hiperinflation which would destroy the dollar forever. They can't defund the government itself without the millions living off welfare going apeshit, plus gov workers and assorted colleges and NGOs that depend on those funds to exist. They can't stop giving free shit to Ukraine because then Russia wins and we will lose face big time on the international stage, nobody will take us seriously if that happens. And you can bet China will invade Taiwan the second Kiev falls.

So no bailout, tech has to suck it for the good of the nation.

Most of the extra money the gov has its being funneled straight into the MIC which has far better lobbyists than tech and its involved in way more states that will vote in their favor while tech itself its mostly california and a bit here and there. Plus the MIC can say their funding its an strategic need while tech its not, and you have to be nuts to believe they are gonna let a bunch of nerds take their money when they are going thru their biggest heyday since the dubya 9/11 years two decades ago, and who knows maybe since the cold war.

This is looking like another dotcom crash, maybe a bit bigger but again not a new 2008-like crisis. California is fucked (nanoviolin playing) and all the lefties hating on tech will have to suck dick to survive as their neighborhoods turn into Detroit. If you got any real estate there sell it now.

As for wages, I know plenty of people who worked at startups that folded and trust me: you ain't getting paid. They are gonna declare bankruptcy, the founders' assets are gonna dissappear into some tax heaven like the bahamas or seychelles, and if you go to trial your lawyer is gonna cost more than your paycheck, of which you're gonna get cents on the dollar, so you're better off stealing all you can from your office before you go. As for future work, assuming you're doing real shit and not bullshit like HR, marketing, management or some flavor of ESG retardness then whats gonna happen is you're going back to the days of average salaries at the IT dept at a boring company and working on a cubicle with no perks (assuming you cared about that shit) or remote work, which sucks but not as much as having to do facialabuse porn which is what a lot of the aforementioned diversity hires will have to resort to.

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LMAO meta just killed the metaverse and might kill their VR dept just like google killed stadia. And nvidia its fucked ever since minerfags started dumping used GPUs, and gamers refuse to buy the 4xxx series.

"Winners" my ass.

The last tweet in the OP is wrong. FDIC insures UP TO 250k on each account. So if you have 250,000.01 in your account, you'll still get 250,000.00. Would love to see the spread of account balances though. Surely some retards just lost their shirt, but every single financial expert I've ever talked to has always told me "never have more than 250k in your account. Always spread it across multiple institutions when you're dealing with that level of cash".

That being said, having 250k in liquid cash is a tard thing to do regardless unless you're buying a home or making a major purchase. Like seriously, go throw that money into bonds or something. There is no reason to hold that level of cash.

Edit: Nvm I'm rerarted. I didn't realize those were business accounts. They probably need to have a significant amount of cash on hand for payroll/acquisitions.

Does FDIC covers $250k per person or per account?

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.

Same as the dotcom era when you had startups paying for ads on other startups' portals and those ads made the entirety of their revenue. That's how yahoo imploded.

Anyway, I hope kickstarter fucking dies.

It’s also interesting we have not heard much from Sam Bankman-Fried yet.

He's been memoryholed because of his dnc connections, damage control on a gamergate-scale.

Prep. Food, meds, silver, bullets, information (books mostly), toiletries.

Nah, you know what you need?

Bullets and antibiotics.

That's the money of a post-SHTF scenario, because neither are easy to make but are essential for surviving.

What happens to the bosses who can't pay their employees do the employees have any recourse?

They leave for a country with no extradition treaties or fake their deaths like that canuck from bittoro or whatever the name was.

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Is that fucking book real or a /pol/ meme?

Joe Blogs is a bit of a moronic Doomposter. Mostly half assed regurgitations about China. He’s pure Aussie clickbait. Of the “was MH370 taken by aliens?” Variety. So he might be almost as bad as Jim Kramer. He’s not a financial analyst. He’s a Youtuber slowly working his way to lolcow.

Make a thread.

Problem is the only positions doing actual hiring are either nosebleed level (Chief of IT security, etc) or dogshit-level (Tier 1 tech support, "Tier 0.5" sales/customer disservice,etc.)

Still better than flipping burgers.

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lol

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

Don't insult roombas comparing to them to this oxygen thief.

I don’t know about you all... but this is the first time since college since I’ve felt alive. I have lots of silver and been waiting for this to happen for 10 years. The point where 1 silver Roosevelt dime buys me a blowjob from a formerly well to do housewife and her 18 year old daughter at the same time. I’ve been waiting in the shadows laughing at these cuck husbands who buy their wives range rovers instead of buying silver bullion... knowing that I’ll be face fucking their wives mouths for the 1.30$ it cost me to buy that silver dime.

Just this morning at Whole Foods I seamlessly entered a conversation with a roastie milf with a ring about SVB in the water aisle... and I said it’s the canary in the coal mine signalling the complete economic collapse of the US. She was looking at me in amazement like she wanted me to paint her lips in cum. At the end of the conversation I’m like take my number, maybe I can help you out if you are in a jam and she took it from me.

You forgot "and everybody clapped" at the end.