The SVB (Silicon Valley Bank) Failure, Nothingburger? Or More?

[socaldude]

Looking at the data and different indicators, I don't see anything indicative of a financial crisis or a big credit crisis. But as we all know, it's not supposed to be obvious. LOL

Politicians lying on press conferences, the front page of Bloomberg depicting the opinion of some CEO. LOL

If cryptocurrency exposure of startups was the main reason that led to problematic levels of withdrawals, then the same thing might not be happening at that many other banks!?

Yes. Absolutely. Not to mention the YEARS it took leading up to this then a failure overnight.

 

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[ZackerySprague]

View: https://www.youtube.com/watch?v=oHjDCC6Vigc

 

[Kevin88660]

I wonder why are start-ups putting money in smaller banks instead of more established bug brand names.

Are they paying higher interest or what?

 

[Skroob]

I wonder why are start-ups putting money in smaller banks instead of more established bug brand names.

Are they paying higher interest or what?

SVB and the like were giving them lines of credit that other banks wouldn't give them.

Because of the risk.

Apparently SVB wasn't too good about managing risk.

 

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[Kevin88660]

View: https://m.youtube.com/watch?v=dZXutPyCE8U


Happened before in China.

Small banks offering higher interest to compete with big banks and in turn forced to do riskier business. Vicious cycle in economic downturn.

Stay away from small banks.

 

[MJ DeMarco]

Apparently SVB wasn't too good about managing risk.

Meh, who cares if billions were lost. They had a diverse workforce that checked all the boxes.

 

[Skroob]

Meh, who cares if billions were lost. They had a diverse workforce that checked all the boxes.

I wish I could think of a way to turn virtue signaling into millions of dollars. Besides running for Congress, I mean.

 

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[Andy Black]

I wish I could think of a way to turn virtue signaling into millions of dollars. Besides running for Congress, I mean.

T-shirts?

 

[Fox]

Meh, who cares if billions were lost. They had a diverse workforce that checked all the boxes.

Identified as solvent/solvency.

 

[Kak]

I wish I could think of a way to turn virtue signaling into millions of dollars. Besides running for Congress, I mean.

Sell the commie starter pack: face diapers, piercings and purple hair dye.

 

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[Kak]

Meh, who cares if billions were lost. They had a diverse workforce that checked all the boxes.

It died of ESG cancer.

 

[thechosen1]

It died of ESG cancer.

I'm sure the shareholders are happy they had the right intentions though, right?

 

[Andreas Thiel]

I keep reading that it is a get woke, go broke story. Does anybody have more info about what exactly they did wrong?
Have not read of anything specific that says the greed was off the charts or that there was extreme negligence.
Just that startups withdrew a lot of money in a short amount of time. Was the whole premise wrong (catering to risky startups)? Are there examples of woke moves that got them in trouble?

 

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[greg218]

Well they did donate over $70 million to BLM and other social related causes

You are being redirected...

 

[ZF Lee]

US Dollar Gains as Fed Balance Sheet Swells, but it is Not What You Think

The US Dollar climbed as First Republic Bank was poised to receive aid and market volatility cooled. Meanwhile, the Fed’s balance sheet ballooned, but not because of quantitative easing.

www.dailyfx.com

Fed’s balance sheet took on an additional 300 billion.
Not really QE as we know it as treasuries and MBS still winding down... it all came from discount window borrowing, which is a very short-term loans only used when its VERY necessary (they have higher rates)

And while First Republic hadn't found buyers yet, major banks dropped in some dough:

Major US banks inject US$30b to rescue First Republic Bank

NEW YORK: Large US banks injected US$30 billion (RM135 billion) in deposits into First Republic Bank on Thursday (March 16), swooping in to rescue the...

www.thesundaily.my

Still feel that its just buying time though...

And it sure reminds me of the Panic of 1907, when JP Morgan marshalled up the bankers and his own cash to
hold things up:

Panic of 1907 - Wikipedia

en.wikipedia.org

That event led to the creation of the Fed. So if we do have a crash NOW, I wonder what is the NEXT institution folks
will come up with...

 

[BizyDad]

Well they did donate over $70 million to BLM and other social related causes

You are being redirected...

View attachment 47653

On the forum since 2011. This is your third comment and your first reaction score. Congrats.

I have to ask, why have you been lurking so long?

 

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[Everyman]

My crystal ball says:

This is all planned of course. The owners of the FED decide when, where and what they want to do with money supply. They know everything about every bank and balance.

That event led to the creation of the Fed. So if we do have a crash NOW, I wonder what is the NEXT institution folks
will come up with...

The plan is to create the CBDC, issued by the FED, take over other banks directly or indirectly, so everyone has their account with them and to control the digital fiat money supply (they cannot control physical money the same way hence we will see two systems in a couple of years, same as in communist countries).*

"Give me control of a nations money supply, and I care not who makes it’s laws" (Rockefeller or Rotschild?)

This is just a small step.

Depends. Because 20 years ago Hussain stopped using the FED dollar and started using EURO for oil payments. Look what happened in 2003. Same with Gaddaffi - he wanted to create a single African currency based on gold... same story. Only 2011. But look now - 2019 - 2023. More and more countries are moving away from the FED dollar to settle trade...

*But I heard stories from Sweden that they tried cashless there and ended up in disaster. Look India 2016. These are 'exercises'

 

[JordanK]

My crystal ball says:

This is all planned of course. The owners of the FED decide when, where and what they want to do with money supply. They know everything about every bank and balance.



The plan is to create the CBDC, issued by the FED, take over other banks directly or indirectly, so everyone has their account with them and to control the digital fiat money supply (they cannot control physical money the same way hence we will see two systems in a couple of years, same as in communist countries).*

"Give me control of a nations money supply, and I care not who makes it’s laws" (Rockefeller or Rotschild?)

This is just a small step.

Depends. Because 20 years ago Hussain stopped using the FED dollar and started using EURO for oil payments. Look what happened in 2003. Same with Gaddaffi - he wanted to create a single African currency based on gold... same story. Only 2011. But look now - 2019 - 2023. More and more countries are moving away from the FED dollar to settle trade...

*But I heard stories from Sweden that they tried cashless there and ended up in disaster. Look India 2016. These are 'exercises'

The FED already controls every single person in the US. With a stroke of a pen they can make banks insolvent, push your monthly payments up so high that your assets are stripped from you... increase the power of the dollar and bankrupt indebted countries then seize their physical assets as payments.... etc etc I don't see what more power they could even get. They have it all.

 

[Everyman]

I don't see what more power they could even get. They have it all.

One reason, I mention above, one of many.

They also fight over control 'between themselves' - so FED owners can only control where they can force the Gov to send the US Army / Navy (to be precise) to 'implement democracy'. USA is in decline, steady or not, decline, and we now again have oligopoly (don't know if correct term) instead of hegemony on the globe.

So they don't have it all because the greedy monkeys control less and less. They might have it all in the US, but are losing power everywhere else hence these hmm... events... One explanation of course. Not definite and not 'know it all'...

With a stroke of a pen they can make banks insolvent, push your monthly payments up so high that your assets are stripped from you... increase the power of the dollar and bankrupt indebted countries then seize their physical assets as payments....

But they have to be careful. Because it might escalate, and if it escalates too much they might actually loose too much.

China is only waiting, India too, Russia too etc etc... Iran, Saudi Arabia, Turkey... So many countries. While everyone only see Ukraine, the same might happen in Texas or Mexico (uuuuuu I know)... The system is so interconnected that everyone wants to weaken everyone but not as much to create a huge crisis that could end up don't know where... So balancing...

 

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[Kevin88660]

I keep reading that it is a get woke, go broke story. Does anybody have more info about what exactly they did wrong?
Have not read of anything specific that says the greed was off the charts or that there was extreme negligence.
Just that startups withdrew a lot of money in a short amount of time. Was the whole premise wrong (catering to risky startups)? Are there examples of woke moves that got them in trouble?

View: https://youtu.be/sRhFjpYERa4

 

[thechosen1]

T-shirts?

Tried that as one of my first businesses. Way too saturated. Haha.

The guy who made the Bernie-on-a-unicorn print on demand shirts made a mint, though. And I read he was FAR from a Bernie supporter.

Good for him!

 

[Andy Black]

Tried that as one of my first businesses. Way too saturated. Haha.

I know a guy who sells custom t-shirts. I think he spends over $700k/mth on Facebook Ads.

 

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[JordanK]

One reason, I mention above, one of many.

They also fight over control 'between themselves' - so FED owners can only control where they can force the Gov to send the US Army / Navy (to be precise) to 'implement democracy'. USA is in decline, steady or not, decline, and we now again have oligopoly (don't know if correct term) instead of hegemony on the globe.

So they don't have it all because the greedy monkeys control less and less. They might have it all in the US, but are losing power everywhere else hence these hmm... events... One explanation of course. Not definite and not 'know it all'...



But they have to be careful. Because it might escalate, and if it escalates too much they might actually loose too much.

China is only waiting, India too, Russia too etc etc... Iran, Saudi Arabia, Turkey... So many countries. While everyone only see Ukraine, the same might happen in Texas or Mexico (uuuuuu I know)... The system is so interconnected that everyone wants to weaken everyone but not as much to create a huge crisis that could end up don't know where... So balancing...

I don't think anyone really takes China, Russia, India or the Middle Eastern countries seriously as an alternative to American dominance. You know what you get with the Americans... everyone likes to give out about them but if you play within their rules you can be highly successful (i.e Ireland poaching a lot of their multinationals)

The Chinese Silk Road financing scheme has been revealed to be a debt trap play. China doesn't reveal accurate information about its economy, currency or in the case of the pandemic its health information.

The Russians are a gas station and arms manufacturer with not much else. They want to destroy the system completely not entice people to join theirs.

India isn't developed enough yet but could elevate themselves in years to come. They don't seem to want to rule over a system though and favor neutrality like a big Ireland.

 

[Xeon]

Meh, who cares if billions were lost. They had a diverse workforce that checked all the boxes.

Speaking of diversity, if anyone has used free stock photo sites like pexels.com or unsplash.com, you'll have notice that these sites have gone woker and woker in terms of the demographics of the people in the stock photos. They're reaching a point where the models in the stock photos are no longer an accurate representation of reality, but just thrown in there for wokeness.

 

[techvx]

I don't think anyone really takes China, Russia, India or the Middle Eastern countries seriously as an alternative to American dominance.

You honestly don't notice anything remotely wrong with this kind of phrasing? Is this just an American way of looking at the world, or just a heuristic that is meant to reduce the whole of humanity to one giant status game and a **** measuring contest with one player dominating others by any and all means possible?

Not everybody out there is willing to play by the "win or die" rules of the US stock market. Not everyone only gives a heck about establishing their geopolitical authority to, ultimately, bend others into the kind of position that will let the nameless "shareholders" and their puppets in the Senate keep milking the rest of the world for their personal gain. Is that much not clear?

You know what you get with the Americans...

Do you, now? And what would that be, I have to wonder? The privilege of being tied to their currency, not backed by anything since 1971? The honor of the SWIFT pool, easily turned off for whomever is considered to be a threat or a good candidate to be beaten into submission?

Or, perhaps, the agents of "national security" chasing Snowden-s and Assange-s to the end of the world for daring to provide the public with the information you'd think people would need to know in order to make better, informed, and educated, perfectly democratic decisions?

Should the rest of the world be rejoiced about American multinationals and their incredible health prevention strategies, tied only to the depth of their pockets - not to any kind of integrity, sense of moral or ethical code?

Does every country in the world need its own set of Nikola/Theranos-style startups, maybe?

Or the stunningly incredible combination of the smoking age being counted from 18, and the age at which it's perfectly fine to question the whole notion of your entire identity and place in society (not even mentioning the gender and the exact combinations of characters and sounds by which others must refer to you), that many people have trouble with well in their 40s (a.k.a. midlife crisis), from an arbitrarily young and peer pressure / conformism susceptible number of years? Can't imagine anything going horribly wrong with that blindly "empathetic" kind of attitude later on, that's for sure.

everyone likes to give out about them but if you play within their rules you can be highly successful

And which criteria for success are you so ready to consider as absolutely universal to our whole world? On the basis of what do you believe the American rules to be objectively, hands down, overwhelmingly superior to any other set of standards? Perhaps more importantly, though - what kind of assurance can others have in the US government (or their sponsors, really) not changing any of these magnificent rules overnight to suit their personal agenda?

(i.e Ireland poaching a lot of their multinationals)

Are you actually comparing the state of Ireland with the territories and resources, both natural and economic, possessed by China, Russia, Middle East, and the rest of the players - refusing to dance to the American whistle?

They don't seem to want to rule over a system though and favor neutrality

Because the weakest dog always barks the loudest. It has nothing else to put forward. India, Russia, Arabs, Chinese don't care: they have enough already. And it's precisely because they can not play by the "most wonderful" - and ultimately colonialist - rules of the system that US is so keen to get under its thumb, that they still exist on their own in their current form.

Otherwise they'd long succumb to the definitely not hypocritical combinations of the principles of "freedom", "sovereignty", "democracy", and a bunch of other emotionally charged, sense of fairness triggering words, parroted left and right by the talking heads on your TV and news channels, owned and financed by god knows who - which are somehow combined with missions to "sway opinions and actions of foreign governments, groups, and individuals" and "strategically influence and deceive" that the PsyOps department doesn't even try hide.

 

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[Kevin88660]

I don't think anyone really takes China, Russia, India or the Middle Eastern countries seriously as an alternative to American dominance. You know what you get with the Americans... everyone likes to give out about them but if you play within their rules you can be highly successful (i.e Ireland poaching a lot of their multinationals)

The Chinese Silk Road financing scheme has been revealed to be a debt trap play. China doesn't reveal accurate information about its economy, currency or in the case of the pandemic its health information.

The Russians are a gas station and arms manufacturer with not much else. They want to destroy the system completely not entice people to join theirs.

India isn't developed enough yet but could elevate themselves in years to come. They don't seem to want to rule over a system though and favor neutrality like a big Ireland.

Frédéric Pierucci - Wikipedia

en.m.wikipedia.org

 

[Xeon]

You honestly don't notice anything remotely wrong with this kind of phrasing? Is this just an American way of looking at the world

"America is the main character of the world." - JohnnyBoy, 2022

 

[Xeon]

India isn't developed enough yet but could elevate themselves in years to come. They don't seem to want to rule over a system though and favor neutrality like a big Ireland.

They exert influence through their CEOs. Who do you think head many of America's big tech?

 

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[YanC]

We may have to change the title of this thread with Credit Suisse instead of SVB. Regulators, SNB and UBS are apparently negotiating to bail it somehow and prevent a disaster.

Credit Suisse is almost 3 times as big as Lehman Brothers was when it declared bankruptcy, almost 10 times bigger than SVB. It is also a systemic bank.

If there is no positive outcome before markets open, tomorrow may be an interesting day !

 

[ZF Lee]

We may have to change the title of this thread with Credit Suisse instead of SVB. Regulators, SNB and UBS are apparently negotiating to bail it somehow and prevent a disaster.

Credit Suisse is almost 3 times as big as Lehman Brothers was when it declared bankruptcy, almost 10 times bigger than SVB. It is also a systemic bank.

If there is no positive outcome before markets open, tomorrow may be an interesting day !

Yes, probably we could update the thread title to '2008 Crisis 2.0' or something like that...

I'm a bit surprised though how fast they are arranging buyouts and stuff:

Exclusive-UBS seeks about $6 billion in government guarantees for Credit Suisse deal -source By Reuters

Exclusive-UBS seeks about $6 billion in government guarantees for Credit Suisse deal -source

www.investing.com

Not to forget the US higher-ups are consulting Warren Buffett AGAIN on supporting the banks:

Warren Buffett in Contact With Biden Team on Banking Crisis

Berkshire Hathaway Inc.’s Warren Buffett has been in touch with senior officials in President Joe Biden’s administration in recent days as the regional banking crisis unfolds.

www.bloomberg.com

This SOOO feels like the repeat of the aftermath of the 2008 crisis, and Buffett did profit handsomely for his
help back then. He came up with the idea of lobbing them cash, as opposed to buying their assets. Rather controversial, but when off-balance sheet items are exploding everywhere...are ya really gonna buy turds?

How Warren Buffett rescued US biggest banks from financial crisis

Warren Buffett, the Oracle of Omaha's frugal decision has helped two big banks overcome the crisis during their worst period.

www.livemint.com