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Silicon Valley Bank Goes Under, Won't be the Last...
invite response
2023 Mar 10, 9:47am 43,686 views 326 comments
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95
AD
2023 Mar 12, 1:17pm
AD
2023 Mar 12, 1:17pm
.
all of this liquidation of silicon valley bank is inside deal making to their ivy league educated friends
its just a lot more sophisticated form of back slapping good ole boys and legacy families in the florida panhandle
roll tide
.
all of this liquidation of silicon valley bank is inside deal making to their ivy league educated friends
its just a lot more sophisticated form of back slapping good ole boys and legacy families in the florida panhandle
roll tide
.
96
GNL
2023 Mar 12, 1:29pm
GNL
2023 Mar 12, 1:29pm
mell says
Probably the best investing advice for an entire generation.
Don't support woke businesses. Period
Probably the best investing advice for an entire generation.
100
AD
2023 Mar 12, 4:01pm
AD
2023 Mar 12, 4:01pm
.
Now the crypto friendly bank, Signature Bank, has been shut down by the government
https://www.coindesk.com/policy/2023/03/12/crypto-friendly-signature-bank-shut-down-by-state-regulators-fed/
,
Now the crypto friendly bank, Signature Bank, has been shut down by the government
https://www.coindesk.com/policy/2023/03/12/crypto-friendly-signature-bank-shut-down-by-state-regulators-fed/
,
101
AD
2023 Mar 12, 4:04pm
AD
2023 Mar 12, 4:04pm
mell says
yep, the guvmint and federal reserve don't want a panic which results in panic or fire sale prices and shark investors coming in and buying pennies on a dollar
go back to washington mutual and see how it got sold off for a ridiculous low price ... just like housing sold for $270,000 and then 2 years later bought for $115,000 ...
no more exploited chaos resulting essentially in freebee's for those investors with cash ...
.
https://www.cnbc.com/2023/03/12/regulators-unveil-plan-to-stem-damage-from-svb-collapse.html
yep, the guvmint and federal reserve don't want a panic which results in panic or fire sale prices and shark investors coming in and buying pennies on a dollar
go back to washington mutual and see how it got sold off for a ridiculous low price ... just like housing sold for $270,000 and then 2 years later bought for $115,000 ...
no more exploited chaos resulting essentially in freebee's for those investors with cash ...
.
102
Misc
2023 Mar 12, 5:13pm
Sometimes you just gotta print the money.
Someone on another thread asked "Why a country would need a Central Bank"?
Someone on another thread asked "Why a country would need a Central Bank"?
103
Ceffer
2023 Mar 12, 6:28pm
Ceffer
2023 Mar 12, 6:28pm
They'll shore it up because DARPA shit in those SiCo Valley start ups.
\
\
104
RWSGFY
2023 Mar 12, 6:55pm
RWSGFY
2023 Mar 12, 6:55pm
PRAISE ALLAH, HARRY & MEGHAN SAVED FROM FINANCIAL RUIN AND WON'T NEED TO GIVE HAND JOBS FOR CASH!!!!
105
AmericanKulak
2023 Mar 12, 7:12pm
AmericanKulak
2023 Mar 12, 7:12pm
RWSGFY says
They won't be forced to "Abandon their privacy" and do more Netflix Specials on Mental Health and tell crap stories about dumb sibling arguments from their childhood
PRAISE ALLAH, HARRY & MEGHAN SAVED FROM FINANCIAL RUIN AND WON'T NEED TO GIVE HAND JOBS FOR CASH!!!!
They won't be forced to "Abandon their privacy" and do more Netflix Specials on Mental Health and tell crap stories about dumb sibling arguments from their childhood
106
AD
2023 Mar 12, 7:31pm
AD
2023 Mar 12, 7:31pm
.
Just checked Yahoo Finance page and S&P 500 futures still up. Looks like investors have confidence in there not being a banking and financial crisis.
.
Just checked Yahoo Finance page and S&P 500 futures still up. Looks like investors have confidence in there not being a banking and financial crisis.
.
107
mell
2023 Mar 12, 7:35pm
There is no match for the Fed bazooka, they'll just inflate their way out of this. Shorts already have made their money, it's very dangerous being short against the Fed
108
AD
2023 Mar 12, 7:51pm
AD
2023 Mar 12, 7:51pm
mell says
they'll keep the financial system propped up in order to keep the federal government solvent especially with debt to gdp ratio and debt service payments as a percentage of the federal government budget .... this allows the federal government to not have to enact drastic changes such as to entitlements
i agree as far as inflating out of a crisis as inflation is the tax ultimately for the middle and working class
i see the fed raising to 5.00% for the Fed Funds rate but no higher as they change their plan to go higher than 5.25% and they'll continue quantitative tightening
.
There is no match for the Fed bazooka, they'll just inflate their way out of this. Shorts already have made their money, it's very dangerous being short against the Fed
they'll keep the financial system propped up in order to keep the federal government solvent especially with debt to gdp ratio and debt service payments as a percentage of the federal government budget .... this allows the federal government to not have to enact drastic changes such as to entitlements
i agree as far as inflating out of a crisis as inflation is the tax ultimately for the middle and working class
i see the fed raising to 5.00% for the Fed Funds rate but no higher as they change their plan to go higher than 5.25% and they'll continue quantitative tightening
.
110
mell
2023 Mar 12, 8:20pm
ad says
ad says
Agreed. I'm not for it but most countries of the world have embarked on a similar voyage, maybe at some point we have another economic system take over, but for the foreseeable future this is the MO. Plus it makes debt and debt to gdp relative if all countries are debtors of each other. It sucks for those without assets as it's continued devaluation of their currency/buying power, but most will take it over the fear of unemployment. It's very difficult to detach from this system or going Galt. But avoiding woke companies is not hard to do and is so worth it.
mell says
There is no match for the Fed bazooka, they'll just inflate their way out of this. Shorts already have made their money, it's very dangerous being short against the Fed
they'll keep the financial system propped up in order to keep the federal government solvent especially with debt to gdp ratio and debt service payments as a percentage of the federal government budget .... this allows the federal government to not have to enact drastic changes such as to entitlements
i agree as far as inflating out of a crisis as inflation is the tax ultimately for the middle and working class
i see the fed raising to 5.00% for the Fed Funds rate but no higher as they change their plan to go higher than 5.25% and they'll continue quantitative tightening
.
ad says
mell says
There is no match for the Fed bazooka, they'll just inflate their way out of this. Shorts already have made their money, it's very dangerous being short against the Fed
they'll keep the financial system propped up in order to keep the federal government solvent especially with debt to gdp ratio and debt service payments as a percentage of the federal government budget .... this allows the federal government to not have to enact drastic changes such as to entitlements
i agree as far as inflating out of a crisis as inflation is the tax ultimately for the middle and working class
i see the fed raising to 5.00% for the Fed Funds rate but no higher as they change their plan to go higher than 5.25% and they'll continue quantitative tightening
.
Agreed. I'm not for it but most countries of the world have embarked on a similar voyage, maybe at some point we have another economic system take over, but for the foreseeable future this is the MO. Plus it makes debt and debt to gdp relative if all countries are debtors of each other. It sucks for those without assets as it's continued devaluation of their currency/buying power, but most will take it over the fear of unemployment. It's very difficult to detach from this system or going Galt. But avoiding woke companies is not hard to do and is so worth it.
111
fdhfoiehfeoi
2023 Mar 12, 9:32pm
fdhfoiehfeoi
2023 Mar 12, 9:32pm
No one's saying unwinding the largest debt bubble in the world's history is going to be easy, or fun. But if we ever want to get out of debt-slavery, improve our standard of living, and be free, it's the only way. And it will happen regardless, hyperinflation is just a longer, more painful, and more explosive road to the same end. Of course they're hoping to keep all this up until they can have a planned collapse and transition over to CDBC, but early trials are a disaster. It won't happen.
Watched a financial analyst on local news, guy said two things ad-naseum. Deposits are ensured, and no reason to panic. I got the impression he's scared as shit of a loss of confidence tomorrow leading to further bank runs.
That bazooka doesn't mean dick if everyone pulls their money tomorrow. Confidence is what props up the lies, and it's fading fast.
Watched a financial analyst on local news, guy said two things ad-naseum. Deposits are ensured, and no reason to panic. I got the impression he's scared as shit of a loss of confidence tomorrow leading to further bank runs.
That bazooka doesn't mean dick if everyone pulls their money tomorrow. Confidence is what props up the lies, and it's fading fast.
112
fdhfoiehfeoi
2023 Mar 12, 9:36pm
fdhfoiehfeoi
2023 Mar 12, 9:36pm
ad says
So much for the SVB being isolated...
.
Now the crypto friendly bank, Signature Bank, has been shut down by the government
https://www.coindesk.com/policy/2023/03/12/crypto-friendly-signature-bank-shut-down-by-state-regulators-fed/
,
So much for the SVB being isolated...
113
EBGuy
2023 Mar 12, 10:55pm
It gets better...
Eight years before the second-largest bank failure in American history occurred this week, the bank’s president personally pressed Congress to reduce scrutiny of his financial institution, citing the “low risk profile of our activities and business model,” according to federal records reviewed by The Lever.
Three years later — after the bank spent more than half a million dollars on federal lobbying — lawmakers obliged.
...
Touting “SVB’s deep understanding of the markets it serves, our strong risk management practices,” Becker argued that his bank would soon reach $50 billion in assets, which under the law would trigger “enhanced prudential standards,” including more stringent regulations, stress tests, and capital requirements for his and other similarly sized banks.
Becker insisted that $250 billion was a more appropriate threshold.
https://www.levernews.com/svb-chief-pressed-lawmakers-to-weaken-bank-risk-regs/
Eight years before the second-largest bank failure in American history occurred this week, the bank’s president personally pressed Congress to reduce scrutiny of his financial institution, citing the “low risk profile of our activities and business model,” according to federal records reviewed by The Lever.
Three years later — after the bank spent more than half a million dollars on federal lobbying — lawmakers obliged.
...
Touting “SVB’s deep understanding of the markets it serves, our strong risk management practices,” Becker argued that his bank would soon reach $50 billion in assets, which under the law would trigger “enhanced prudential standards,” including more stringent regulations, stress tests, and capital requirements for his and other similarly sized banks.
Becker insisted that $250 billion was a more appropriate threshold.
https://www.levernews.com/svb-chief-pressed-lawmakers-to-weaken-bank-risk-regs/
114
richwicks
2023 Mar 13, 2:52am
richwicks
2023 Mar 13, 2:52am
B.A.C.A.H. says
I think this place has cut its own throat by getting into bed with the Intelligence agencies. I fully expect this place to be the next Detroit.
There is SO MUCH BULLSHIT here now. Tesla is just a dumb idea, electric cars are a dumb idea. So many companies just make bullshit that are ESG stupidity. Large firms are hiring frankly morons based on skin color, nationality, sexual and gender identity. I can SEE it starting to fall apart.
Twitter isn't going to recover. Youtube is dying on the vine. Google has become a 2nd, maybe 3rd tier search engine. Facebook is worthless, Twitter is worthless. There's no need for better and faster processors at least for the consumer market, and frankly we can't make the chips much faster anyhow.
And censorship is obvious, and it just drives people away. It's like IMDB, that used to be a great site, but since it was purchased, it just promotes the latest film, there's no discussion there, all the rating are fake and bullshit to the point people don't even use the site anymore. That's going to happen to every company pushing an agenda. I'm sure they have SHIT-TONS of money from the government to stay afloat, but they are going to be ignored. You can't force people to use these services, even if they are free.
It's the reason, for my whole adult life, I only use "Silicon Valley" as a Pejorative.
I think this place has cut its own throat by getting into bed with the Intelligence agencies. I fully expect this place to be the next Detroit.
There is SO MUCH BULLSHIT here now. Tesla is just a dumb idea, electric cars are a dumb idea. So many companies just make bullshit that are ESG stupidity. Large firms are hiring frankly morons based on skin color, nationality, sexual and gender identity. I can SEE it starting to fall apart.
Twitter isn't going to recover. Youtube is dying on the vine. Google has become a 2nd, maybe 3rd tier search engine. Facebook is worthless, Twitter is worthless. There's no need for better and faster processors at least for the consumer market, and frankly we can't make the chips much faster anyhow.
And censorship is obvious, and it just drives people away. It's like IMDB, that used to be a great site, but since it was purchased, it just promotes the latest film, there's no discussion there, all the rating are fake and bullshit to the point people don't even use the site anymore. That's going to happen to every company pushing an agenda. I'm sure they have SHIT-TONS of money from the government to stay afloat, but they are going to be ignored. You can't force people to use these services, even if they are free.
115
Booger
2023 Mar 13, 3:29am
Booger
2023 Mar 13, 3:29am
The federal reserve will use this as an excuse to not raise rates, or at least only do a 25 basis point raise.
116
zzyzzx
2023 Mar 13, 6:12am
zzyzzx
2023 Mar 13, 6:12am
SVB (ticker symbol SIVB) has stopped trading. I'm disappointed that I can't watch the stock slide from 106.04 to zero while shorts cover (do they even need to do that?).
119
zzyzzx
2023 Mar 13, 7:21am
zzyzzx
2023 Mar 13, 7:21am
cisTits says
It does if they have to print money to cover the shortfall when they sell those MBS's at a steep discount and have to print money to make up the difference. But really it's probably not that much in the grand scheme of things so really isn't inflationary much, I would think.
Besides that, if the federal reserve raised rates 75 basis points, as they should, they would be doing the right thing. As history shows us, the federal reserve rarely, if ever, does the right thing and is always looking for an excuse to not do the right thing.
Booger says
The federal reserve will use this as an excuse to not raise rates, or at least only do a 25 basis point raise.
Don't see how. This doesn't impact inflation or the money supply at all.
It does if they have to print money to cover the shortfall when they sell those MBS's at a steep discount and have to print money to make up the difference. But really it's probably not that much in the grand scheme of things so really isn't inflationary much, I would think.
Besides that, if the federal reserve raised rates 75 basis points, as they should, they would be doing the right thing. As history shows us, the federal reserve rarely, if ever, does the right thing and is always looking for an excuse to not do the right thing.
120
RayAmerica
2023 Mar 13, 7:23am
RayAmerica
2023 Mar 13, 7:23am
We've been running the entire country on excessive amounts of debt, and the banks were only too willing to create more opportunities to meet the demand while the regulators look the other way. Bankers always get more and more greedy, and in the end they can't control themselves. That's what's behind the insanity known as derivatives, whereby 'loans' are created using other loans as collateral.
The only answer out of this mess will be a Weimar Republic type inflation. We all know how that all worked out, providing an opportunity for a 'strong man' to make things right. Unfortunately his plan included war, which ended up killing over 50 million people. That may be what's next. Gerald Celente often states: "When all else fails, they take us to war."
The only answer out of this mess will be a Weimar Republic type inflation. We all know how that all worked out, providing an opportunity for a 'strong man' to make things right. Unfortunately his plan included war, which ended up killing over 50 million people. That may be what's next. Gerald Celente often states: "When all else fails, they take us to war."
121
zzyzzx
2023 Mar 13, 7:31am
zzyzzx
2023 Mar 13, 7:31am
So if you happened to have had a short position in Silicon Valley Bank, you don't even need to cover?
122
zzyzzx
2023 Mar 13, 7:34am
zzyzzx
2023 Mar 13, 7:34am
Any of you ever heard of Silicon Valley Bank before this? Because I haven't. Just curious.
123
1337irr
2023 Mar 13, 7:38am
1337irr
2023 Mar 13, 7:38am
zzyzzx says
Yes, I wasn’t impressed with their IT infrastructure.
Any of you ever heard of Silicon Valley Bank before this? Because I haven't. Just curious.
Yes, I wasn’t impressed with their IT infrastructure.
124
zzyzzx
2023 Mar 13, 7:59am
zzyzzx
2023 Mar 13, 7:59am
https://www.cnbc.com/2023/03/13/goldman-sachs-no-longer-expects-the-fed-to-hike-rates-in-march.html
Goldman Sachs no longer expects the Fed to hike rates in March, cites stress on banking system
Goldman Sachs no longer expects the Fed to hike rates in March, cites stress on banking system
125
fdhfoiehfeoi
2023 Mar 13, 8:02am
fdhfoiehfeoi
2023 Mar 13, 8:02am
cisTits says
Where do you think the money's coming from..?
Don't see how. This doesn't impact inflation or the money supply at all.
Where do you think the money's coming from..?
126
zzyzzx
2023 Mar 13, 8:24am
zzyzzx
2023 Mar 13, 8:24am
https://www.cnbc.com/2023/03/12/stock-market-futures-open-to-close-news.html
Dow jumps 200 points as investors bet SVB shock will get the Fed to back off hikes
Dow jumps 200 points as investors bet SVB shock will get the Fed to back off hikes
127
RayAmerica
2023 Mar 13, 8:52am
RayAmerica
2023 Mar 13, 8:52am
zzyzzx says
Prior to the attack on Pearl Harbor on December 7, 1941, 99%+ of Americans couldn't tell you anything about Pearl Harbor.
Any of you ever heard of Silicon Valley Bank before this? Because I haven't. Just curious.
Prior to the attack on Pearl Harbor on December 7, 1941, 99%+ of Americans couldn't tell you anything about Pearl Harbor.
128
RayAmerica
2023 Mar 13, 9:03am
RayAmerica
2023 Mar 13, 9:03am
zzyzzx says
Short Sellers Make $500 Million on SVB’s Demise. Collecting Won’t Be Easy
One-day mark-to-market profit of $513 million on short bets
In this case, with this massive collapse, the shorts are all paper profits. These investors are going to have a lot of fun attempting to collect.
https://www.bloomberg.com/news/articles/2023-03-10/shorts-make-500-million-on-svb-demise-collecting-won-t-be-easy
So if you happened to have had a short position in Silicon Valley Bank, you don't even need to cover?
Short Sellers Make $500 Million on SVB’s Demise. Collecting Won’t Be Easy
One-day mark-to-market profit of $513 million on short bets
In this case, with this massive collapse, the shorts are all paper profits. These investors are going to have a lot of fun attempting to collect.
https://www.bloomberg.com/news/articles/2023-03-10/shorts-make-500-million-on-svb-demise-collecting-won-t-be-easy
129
fdhfoiehfeoi
2023 Mar 13, 9:18am
fdhfoiehfeoi
2023 Mar 13, 9:18am
Everyone here remembers '08 right? What a fucking huge mistake it was to bail out AIG and the banks? This is literally throwing gasoline on the fire. If you don't remember, prepare to get burned.
130
ElYorsh
2023 Mar 13, 9:29am
NuttBoxer says
They never put out the fire, just contained it and now they are running out of hoses and extinguishers.
Everyone here remembers '08 right? What a fucking huge mistake it was to bail out AIG and the banks? This is literally throwing gasoline on the fire. If you don't remember, prepare to get burned.
They never put out the fire, just contained it and now they are running out of hoses and extinguishers.
131
RayAmerica
2023 Mar 13, 10:15am
RayAmerica
2023 Mar 13, 10:15am
Now this should strike fear in you. I'm not buying anything that this guy is selling:
Biden Insists "The Banking System Is Safe"
https://www.zerohedge.com/markets/watch-live-president-biden-explains-resilience-us-banking-system
Biden Insists "The Banking System Is Safe"
https://www.zerohedge.com/markets/watch-live-president-biden-explains-resilience-us-banking-system
132
fdhfoiehfeoi
2023 Mar 13, 10:46am
fdhfoiehfeoi
2023 Mar 13, 10:46am
Reminder I had from watching that local financial guy last night. Whatever they tell you, it's the opposite. The more they say it, the more worried they are.
133
zzyzzx
2023 Mar 13, 10:50am
zzyzzx
2023 Mar 13, 10:50am
https://finance.yahoo.com/news/silicon-valley-bank-crisis-force-161835121.html
The Silicon Valley Bank crisis will force the Fed to slash rates by 100 basis points to prevent contagion, market guru says
The Silicon Valley Bank crisis will force the Fed to slash rates by 100 basis points to prevent contagion, market guru says
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Oh yeah, and to once again blow away the bullshit about everyone being insured, read the article about how some depositors will have to pray dividend sales will someday return their deposits to them.
For some fun search bank run and see what some of the top images are.
https://www.zerohedge.com/markets/300-billion-reasons-why-svb-contagion-spreading-broader-banking-system