SVB: One of Silicon Valley’s top banks fails; assets are seized

[acptulsa]

[AngryCanadian]

Banks are cracking and Falling. Biden admin/NeoCons,Libs push more money for future wars.

Biden wants $886 billion defense budget with eyes on Ukraine and future wars

[Brian4Liberty]

I'm beginning to think that the long term bonds they were holding was only a small part of the problem, and it's being used as a distraction from something else.

[ClaytonB]

[nobody's_hero]

I'm beginning to think that the long term bonds they were holding was only a small part of the problem, and it's being used as a distraction from something else.

I think it's both. Sounds like they were kinda reckless with new-age get-rich-(and broke)-quick schemes like crypto but perhaps thought the bonds would give them flexibility. But somehow they had $15 billion in unrealized losses floating around.

[acptulsa]

https://twitter.com/esatoshiclub/sta...19172468199427

[Occam's Banana]

Good 'ol Massie. Look at the 7 million views.

https://twitter.com/RepThomasMassie/...74378454147074

#SassyWithMassie

https://twitter.com/RepThomasMassie/...80037548675072

[Occam's Banana]

https://twitter.com/RepThomasMassie/...07562245615616

[Snowball]

It's a myth that recession stops inflation. It's true that people spend less during a recession but they also produce less stuff. And governments tend to run much bigger deficits therefore print more money in recession. Look at countries that have had high to hyper-inflation. Their economies are always screwed up.

It can work either way. If our society wasn't broken already, recession would cause deflation.
This time, I admit, we don't know yet.

[nobody's_hero]

#SassyWithMassie

https://twitter.com/RepThomasMassie/...80037548675072

I saw that one and burst out laughing.

[acptulsa]

It can work either way. If our society wasn't broken already, recession would cause deflation.
This time, I admit, we don't know yet.

We do know. There will be no deflation. The FRN's value is bound to plummet. They've already printed enough to kill it; they seem confused and amazed it has gotten this far on sheer momentum and not-completely-stoppable American productivity.

It comes down to the printing. That's what physically makes the currency worthless. It isn't a magical symptom that appears automatically when a country goes down the tubes. But broken countries get broken by the very sort of rulers who usually cannot resist printing money.

[Snowball]

We do know. There will be no deflation. The FRN's value is bound to plummet. They've already printed enough to kill it; they seem confused and amazed it has gotten this far on sheer momentum and not-completely-stoppable American productivity.

It comes down to the printing. That's what physically makes the currency worthless. It isn't a magical symptom that appears automatically when a country goes down the tubes. But broken countries get broken by the very sort of rulers who usually cannot resist printing money.

Yeah, I'm not talking about medium or long term here. I didn't even originally call for deflation. I said: "Inflation will stop because the economy will freeze. Transaction volumes and hiring will creep to a halt."

That doesn't mean inflation will stop for a long time, just that it will halt for a while. Due to high rates and deflating asset values, and a recession or worse. Then, after the Fed signals its rate top is in, and a reversal is on the way, inflation will of course resume its upward momentum, worse than ever.

[Brian4Liberty]

So, privatize the gains, socialize the losses?

Now, I am not familiar with how money is managed at the largest corporations in America. My assumption is that they have professional and competent money management. As a matter of fact, anyone with more than $250k sitting in cash at a single bank should have competent money management if they can’t do it themselves.

Frankly, putting all your eggs in one basket (more than $250k in cash at a single bank), is money management malpractice. Is bailing out incompetent people now the norm?

...
If you have $5 million dollars as operating cash for a business, you think accounts at 20 different banks is practical? And incompetent people? How much time did you take understanding the interest rate duration risk of your banks balance sheet before you opened a bank account?
...

I can have sympathy for a small company that trusted a bank to be responsible with their money. But a company that has $5 million operating cash in a single checking account should have someone in-house who is competent enough to understand the risks.

There was an enlightening guest on Varney this morning. She was the founder and CEO of a small company (29 employees). She said that her agreement with SVB required that she have no other accounts (or credit cards) of any kind with any other financial institutions. For this, SVB provided her with a venture capital line of credit, which she said she never used.

She admits now that this was a terrible agreement. In unsympathetic terms, she was not competent. There is a reason that 9 out of 10 new businesses (used to be allowed to) fail. People open businesses, but they often do not have the necessary experience and knowledge. Is anyone allowed to fail anymore in our socialized, safe space, nanny-state?

Additionally, the point of the interview was that she was worried that she wouldn’t make payroll on Monday. It’s highly likely that she was under the $250k FIDC limit, thus her money was always guaranteed. Does Federal government action really need to be taken because a business owner may have a small delay in making payroll?

What else does the nation need to worry about? If her toilets back up at her business and she can’t find a plumber that day?

The only thing that needs to be done at a Federal level is to review the practices, contracts and investments made by SVB. Were any of the contracts illegal under current law? Was there any fraud involved? Was there a violation of fiduciary responsibility at SVB? Those are the relevant questions.

[Anti Federalist]

Well, they say there is no such thing as a sure thing in investing, but this seems pretty solid.

The Jim Cramer Inverse Tracker ETF.

Anything Cramer says, they do the opposite.

https://twitter.com/gurgavin/status/1635481834497753090

[Brian4Liberty]

Well, they say there is no such thing as a sure thing in investing, but this seems pretty solid.

The Jim Cramer Inverse Tracker ETF.

Anything Cramer says, they do the opposite.

https://twitter.com/gurgavin/status/1635481834497753090
...

Lol.

That will be a hard fund to manage. Looks like the current expense ratio is 1.2%. May not be worth it to them after the novelty wears off.

[nobody's_hero]

Well, they say there is no such thing as a sure thing in investing, but this seems pretty solid.

Pretty sure if you invest in whatever Pelosi is investing in, it won't fail. Just make sure you take the money out whenever she does also. It's like she has some sort of savvy crystal ball about what's gonna happen in the future. It's like the woman is some investment wizard or something, lol. /s

[Occam's Banana]

Well, they say there is no such thing as a sure thing in investing, but this seems pretty solid.

The Jim Cramer Inverse Tracker ETF.

Anything Cramer says, they do the opposite.

https://twitter.com/gurgavin/status/1635481834497753090

[... tweet ...]

Lol.

That will be a hard fund to manage. Looks like the current expense ratio is 1.2%. May not be worth it to them after the novelty wears off.

"Anything Cramer says, they do the opposite."

So does Cramer ...

https://www.cnbc.com/2022/10/31/char...amer-says.html



https://www.cnbc.com/2022/10/31/hold...amer-says.html

[Brian4Liberty]

"Anything Cramer says, they do the opposite."

So does Cramer ...

LOL. Even harder than I thought!

[Occam's Banana]

Multiple US Banks Suddenly Collapse—Are “Bailouts” Needed to Avoid Catastrophe? Ft. Matt Stoller | SYSTEM UPDATE #54
"As multiple US banks collapse, is the Federal Reserve's intervention necessary—or an echo of the deeply unpopular 2008 bailouts? We'll be exploring this important question with @matthewstoller." -- @SystemUpdate_
https://rumble.com/v2czgyq--system-update-54.html

CLIPS:

SVB Collapses: 2008 Financial Crisis Is Critical Context | SYSTEM UPDATE
https://www.youtube.com/watch?v=PVoi5PyGFP4


Multiple US Banks Collapse—Are “Bailouts” Needed to Avoid Catastrophe? Ft. Matt Stoller.
https://www.youtube.com/watch?v=Nylkb2YlDlA

[Anti Federalist]

https://twitter.com/CollinRugg/statu...35513863950336

[AngryCanadian]

[devil21]

This is about right , the good banks will pay the FDIC by charging customers more

This is a clue that the Fed will not slow rate hikes, which really only serve to squeeze Main St with higher rates, since SVB has shown that regardless of market value of bank paper asset holdings, they will receive fantasy valuations while Main St will not.

With exploding credit card debt alongside rising interest rates, the banks pull in more cash from Main St servicing increasing debt which is transferred to the FDIC to backstop Wall St's selected institutions/investors. Indeed, there are no more indirect government taxpayer bailouts via Congressional legislation like TARP, which is true at least. Direct squeezing now instead of indirect before. But just for a history reminder...remember that Sen. Warren was TARP Administrator. She went on Real Time with Bill Maher back then and laughed about how she had no clue where all that money went. But she's the people's anti-banking Senator now, dontchaknow.

[Brian4Liberty]

There's no doubt that what we are seeing right now is a panic. Panics are irrational.

Peter Theil may have triggered the panic, because he saw that SVB was having problems with large transactions, and pulled all of his money out:



It's not just bank withdrawals, it's panic selling of bank stocks. And when that happens, cui bono? No doubt the (elite?) short sellers have been going crazy since last week. It's a downward spiral of greed and panic.

Kenny Polcari of Slatestone was just on Fox Business raising these same questions. He said that certain venture capitalists and big players (including Theil) created this hysteria.

[CaptUSA]

Kenny Polcari of Slatestone was just on Fox Business raising these same questions. He said that certain venture capitalists and big players (including Theil) created this hysteria.

Maybe they should question why a financial system is so fragile that it could be rocked by a few tweets?? Nah, let's blame some people who didn't want to lose their money and had access to the information first.

[Brian4Liberty]

https://twitter.com/CollinRugg/statu...35513863950336

Another reason that the state of California will not be investigating malfeasance or incompetence at SVB.

[Occam's Banana]

Russia Shoots Down US Drone, Escalating Fears of Hot War. Plus, David Sacks Argues SVB “Bailouts” Averted Financial Meltdown | SYSTEM UPDATE #55
"A Russian jet collides with and knocks out of the sky a US drone over the Black Sea, highlighting ongoing escalation dangers from Ukraine war. Plus: Silicon Valley Bank bailout advocate @DavidSacks:" -- Glenn Greenwald
https://rumble.com/v2d4va4--system-update-55.html

CLIP:

SVB Collapse: The Case That Government "Bailouts" Were Necessary, ft. David Sacks | SYSTEM UPDATE
https://www.youtube.com/watch?v=pYUDWQW1-Gw

[Brian4Liberty]

Bailout time!

[devil21]

Mr. Yellen admitted that only certain failed banks will see uninsured deposits made whole again. "Systemic risk". What Mr. Yellen means is "Systemic risks to rich people's accounts and investments". All others can pound sand when their bank goes tits up. SVB was loaded with billionaire's and other elite's money and investments so FDIC STATUTORY limits don't apply somehow. Same with First Republic. It's mostly rich people's accounts there, hence the likely bailout by other banks.

https://www.cnbc.com/2023/03/16/svb-...main-safe.html

Treasury Secretary Janet Yellen told senators that government refunds of uninsured deposits will not be extended to every bank that fails, only those that pose systemic risk to the financial system.

I guess the "The deposit accounts of a corporation engaged in any “independent activity” (as defined in § 330.1(g)) shall be added together and insured up to the SMDIA in the aggregate" language in the federal FDIC statute (Title 12-III-B-330) is now officially "may or may not, depends on if you're rich or not and if you're woke or not." (perhaps the differences between US Code applyin to "US Citizens" and maybe not all others? hmmm food for thought)

[Anti Federalist]

https://twitter.com/JordanSchachtel/...53368644886528

[Occam's Banana]

2023 Banking Collapse I Part Of The Problem 975
On this episode of Part Of The Problem, Dave and Robbie discuss the cascading bank failures in the U.S. and how the government bailouts will affect you and your future. We also take a look at a video where Biden tries to convince Comedy Central he has always been progressive on gay marriage.
https://rumble.com/v2dgq9v-2023-bank...oblem-975.html