SVB is Silicon Valley Bank, the almost exclusive banking network for Venture Capitalists (VC), tech sector start-ups and tech industry holding accounts. 48 hours ago, SVB was a “grade A” Moodys rating. As of tonight, they are insolvent.
“All told, customers withdrew a staggering $42 billion of deposits by the end of Thursday, according to a California regulatory filing. […] “The precipitous deposit withdrawal has caused the Bank to be incapable of paying its obligations as they come due,” the California financial regulator stated. “The bank is now insolvent.” (link)
Now, as ridiculous as this sounds outside Silicon Valley, the powers that be are concerned about a ‘contagion‘ effect, and openly discussing the need for a taxpayer funded bailout. Blood-boiling doesn’t even begin to describe the sensation.
Let the Silicon Valley companies who started with the funds from the bank sell some of their capitalization on the market and finance the bailout themselves. After all, this is one interconnected system of lenders, borrowers and investors. This is not a crisis for the guy making their catered lunches, mowing their lawns, or washing their clothes.
♦The system. A tech guy/gal has an idea or product. Venture Capitalists (VC) organize the funding for the idea/product and go to SVB for money to start the company. The bank funds the startup and takes an equity position in the company. The VC brokers the deal, takes payment and also takes an equity position. The company launches and if successful builds a multi-billion enterprise. If they IPO (most do) then shares of the company are sold and the value of the company rises with the increased stock purchasing.
The shares of the company are capital. The shares can be sold to create funds that can support SVB. If SVB needs funds, let the networked companies sell some of their capital and fund the bank that generated their venture. They do not need outside ‘bailouts’. That’s just the way I look at it.
Listening to some voices saying the guy who mows the lawn of the tech company executive has a responsibility to ‘bailout’ the bank that created the wealth for the tech company executive, is just, well, another absurd example of how corrupt this entire financial system has become. Sorry, but this beyond annoys me.
CALIFORNIA – Regulators shuttered SVB Friday and seized its deposits in the largest U.S. banking failure since the 2008 financial crisis and the second-largest ever. The company’s downward spiral began late Wednesday, when it surprised investors with news that it needed to raise $2.25 billion to shore up its balance sheet. What followed was the rapid collapse of a highly-respected bank that had grown alongside its technology clients.
Even now, as the dust begins to settle on the second bank wind-down announced this week, members of the VC community are lamenting the role that other investors played in SVB’s demise.
“This was a hysteria-induced bank run caused by VCs,” Ryan Falvey, a fintech investor at Restive Ventures, told CNBC. “This is going to go down as one of the ultimate cases of an industry cutting its nose off to spite its face.”
The episode is the latest fallout from the Federal Reserve’s actions to stem inflation with its most aggressive rate hiking campaign in four decades. The ramifications could be far-reaching, with concerns that startups may be unable to pay employees in coming days, venture investors may struggle to raise funds, and an already-battered sector could face a deeper malaise.
The roots of SVB’s collapse stem from dislocations spurred by higher rates. As startup clients withdrew deposits to keep their companies afloat in a chilly environment for IPOs and private fundraising, SVB found itself short on capital. It had been forced to sell all of its available-for-sale bonds at a $1.8 billion loss, the bank said late Wednesday.
The sudden need for fresh capital, coming on the heels of the collapse of crypto-focused Silvergate bank, sparked another wave of deposit withdrawals Thursday as VCs instructed their portfolio companies to move funds, according to people with knowledge of the matter. The concern: a bank run at SVB could pose an existential threat to startups who couldn’t tap their deposits. (read more)
.
Way back in the heady 90’s I was approached by multiple VC guys. Along with some of my friends who I’d work with back then on various projects. They were, by far, obviously vultures. I’m not filthy rich now, but I’m not poor either. And not getting involved with those guys, no regrets.
They are nothing but vultures—when the meat is on the table they arrive out of seemingly nowhere!
More banks will fail.
Yes they will, and just in time for the CBDC
There are complaints that Wells Fargo didn’t credit direct deposits in the last 2 days, leading to overdrafts…
There are rumors SVB held top tier US treasury bonds that lost their original value due to rising US interest rates. Imagine going broke holding top rated US treasuries!
Bannon is stating this outright, so not a rumor.
My DD went through today.
I know I shouldn’t bank with Wells Fargo but my mortgage is through them.
Convenience.
Mine too! No problem
Same here. They also have branches all over the country.
It is convenient until you can’t get your money. One of my cousins had an account with them in the 2008 timeframe. They held up her money and caused her no end of grief.
Mine has been pending for 3 days. Very unusual.
probably a software glitch
Germany’s Weimar Republic pretty much coincided with the Great Depression, and we’re currently enduring the U.S.A. version of the Weimar Republic, why not have another Great Depression to go along with everything else; history does repeat because we humans are too dumb to learn from history.
True history is deliberately hidden from us.
More than likely this is just the first of many to come. Prepare yourselves accordingly. This is going to be a very difficult year.
Decade… This will be a nightmare of a decade for those most plugged in…
Cf. Sam Bankman-Fried. Or for that matter the “margin buying” and etc. that caused the 1929 stock market crash.
A casino in Vegas has more rules than this bunch’s Ponzi scheme(s).
They sowed the wind, let them reap the whirlwind.
clear ether
eon
I have an old PC, and refuse all updates and upgrades. I have never owned a cell phone.
I grow 90% of my food, I have no mortgage, and I only have to do what I have to do for my property tax each year. When they stop me paying utilities in cash, I will go without them. FK the system!
My husband has a desktop running Windows 7 Premium. 👍
My son upgraded me to Windows 10 about a decade ago, broke all my games. I may never forgive him….
Prudent course of action for survival. I trust history chronicled similar course of action in what became the Soviet Union. My grandparents were self-sufficient farmers for generations there until the Reds started killing their neighbors in the late teen. Then it got real.
I refuse to let this year be as bad as last year.
Im doing every thing I can to make it so.
Last year sucked balls.
And I’m NOT doing that again.
Aint happening.
That’s what I’m hearing from financial gurus.
NO BAILOUT!!!!!!
Of course there will be a bail out. The drain of the middle clase continues. You will be broke, own nothing, eat bugs and be happy.
There is another option. We can destroy the system sufficiently so there can be no bail out possible. That takes coordination and cooperation and willingness to suffer.
But, but, but that entire network is made up of the Democrats biggest donors. And if that network of big tech companies had problems who could the dems turn to to do their back door censoring, shadow banning and who knows what else. No, it’s a democrat network of million/billionaires so naturally it’s up to the little guys to bail them out.
No problem, its only 42 billion bucks. Eh? We can just create that money tonight and everything will be hunky dory by Monday morning. Easy Schmeezy.
We sell 42 billion in T Bonds to Zelensky for 3% or so.
We sell 42 billion in T Bonds to Zelensky and he pays for them with what, the cash we gave to him? Is this what they mean by keeping money “in circulation”? Works as long as we can skim off 10% for the Big Guy?
Right. Sell Zelensky T Bonds. More like hand it to him on a silver platter. Also, it works until other
people’s money runs out.
Thank you SD for this article. This is a very BIG DEAL!! Bannon also talked about this today earlier on WarRoom. There were over $170B in uninsured deposits in that bank. Congressman Gaetz was on and said he would fight any requested bailout. These woke billionaires can KMA. NO BAILOUTS!!!
If there were over $170 billion in uninsured deposits, it’s because some very rich people and successful companies are particularly stupid.
It might have been a condition of some of the loans SVB made…
They knew the banking laws. They just didn’t think it would ever happen to them. Entitled assholes.
Give them the FTX money!!
That will serve the DemCScum right who used FTX
Not bailouts…..bail INS. God help us!
I second what you said, totally.
These are a bunch of heavy gamblers in a high risk business.
Why am I responsible to help them gamble more?
It’s their mess..not mine.
Kind of like the student loan situation! 😄
Sooner or later we are just going to have to say NO … and be willing to back the NO up with force.
We can still engage in economic warfare but that window is closing. That’s a non-violent aggressive tactic. PDJT used it very successfully with other nations and organizations when POTUS. He handled the levers of power with money, not war.
I’m not averse to war, rather reciting some history that shows other avenues.
We did this bailout stuff in 2008 and shouldn’t have. Most of the banks should have been allowed to fail then. The FDIC was created to insure depositors up to a certain amount that covered most people, and then the shareholders are wiped out with assets auctioned off. That way regular depositors are protected while shareholders learn the lesson to be careful with their investments. We should have followed that process then, and we should follow it now and going forward. No bailouts of anyone excepts depositors.
I don’t think you understand. https://www.investopedia.com/articles/markets-economy/090716/why-bank-bailins-will-be-new-bailouts.asp
Yep, posted a video below, in hopes of educating others. It’s coming, just a matter of when.
Well they can change the law to allow bailouts just as easily as they changed the law to prohibit them can’t they?
We are STILL paying for that fiasco. Trump had us on the way out from under that mess by making a bigger pie.
BetterUp the company Prince Harry works for uses this bank. LOL!
I often wonder why I hand my money over to a bank, and in exchange get a financial derivative called an “account agreement”. Most people think the money they hand over to Chase or Bank of America is still theirs. LOL.
Sivb stock was selling around $250 per share 2 days ago. Closed at 106 yesterday. Went to $40 per share by 830 am ( pre market trading.) Trading halted ,pending news. Market cap 2 days ago was approximately 45 billion. (Stock price x total shares) Deposits only insured up to 250,000. Per account.. Most likely there will be other bank runs. Going to be hard to blame DJT for this but they will try.pray and help others.
It was around $700 a year ago.
Now this is BIG
Prince Harry is mentioned in Matt Taibbi’s Twitter files release on the Censorship-Industrial complex–im no 15 on the threadapp. Harry is a member of the Aspen Institute and Markle’s foundation Archewell is involved too
Watch:
Megyn Kelly–Prince Harry Joins Other Random People To Help Censor Americans
WHY is the son of the King of England involved in US politics and involved in censoring AMERICANS??????
Meddling in US politics by changing the narrative to suit the Democrats????
That together with his admitted drug use which I am sure he never mentioned on his visa application form, should be enough to get him deported.
His drug use and mentally unstable behaviour, should also be enough to get him removed from the line of succession in the UK IMO
There have been rumours about him beating up and injuring women–2 in the UK and one in the US recenlty. All hushed up.
I’d like to know more about that. Apparently the woman in LA had to sign an NDA AFTER.
Now isnt an NDA invalid if signed AFTER a crime has been committed?
Allegedly the US /LA authorities asked the UK whether there were instances of this behaviour previously.
All been hushed up
Maybe some interpid investigator can find out about this.
No question in my mind Harry should be deported from the US
He should be deported…
Sounds like their belongings are being shipped to the US as “Future King Charles” has kicked them out of their UK residence. Where to go? Does anybody really want this couple to move to their country? No!
He is King Charles the third now. His Queen mother died last year.
Sources say Harry and Hunter go out on benders together. Group sex, swap partners, that kind of thing. Bet you Hunter’s illegal guns that Dirty, Dirty Harry Chap isn’t getting deported.
You sign a NDA when you are paid off for the crime by the criminal. It’s hush money.
The British Crown never gave up on getting North America back. He is here grooming his kids to be President for Life, or the new monarchist fan club’s projected monarchy after the American Experiment fails. IMHO.
The banks are collapsing. I have already cashed in my 401K and converted to metals. Your mattress is safer than a bank.
What’s a safe way to convert to metals so you know you’re getting what you’re paying for?
Many trustworthy places sell bullion and coin. Coins are usually safer because they are stamped.
Bars can be assayed at time of sale but that costs money. There’s a company in Gainsville, Kitco, Amex and many more with excellent reputations that sell gold. You can check your coins for integrity using a FIsk checker – small price compared to having a bar assayed. It is easier to counterfeit silver than gold.
Thank you, Lolly.
How come the banks keep failing when the Globalist are in charge of the WH. FYI-the only President since Reagan that I consider to not be a part of the Globalist Regime is Trump.
FYI-There is even rumors of other bank stuff going around about some of the major banks having issues…Wondering if it is time to pad up my mattress a bit more…But will American paper currency be worth anything if all H3LL breaks loose.
Imo, we are at a point where it could go into hyper inflation or depression. In a depression cash is king. In hyperinflation cash is trash.
Are the 30 million who voted for Biden having second thoughts yet?
So in other words since i do have some savings, it wouldn’t hurt to pad my mattress a bit.
That’s what I’m hearing. Keep what cash you can manage to have at home for emergency needs. For a lot of people that’s just not possible.
you mean 81 million/sarc
Keep cash on hand for now, but they will switch to CBDC, and control how much of that you can have and spend. They are saying your CBDC’s will expire after a certain time if not spent. Its to prevent inheritance, so you know land grabs are coming if they stay in power.
Buy metals, bullets, medicines, and seeds. Especially bullets because antimony is running out.
This is why the Saudi/Iran, kiss and make up situation, is very big stuff.
The US dollar’s hegemony is coming to an end.
BRICS is all about doing that.
Biden is weak, and they know it. They are hedging their bets on the end of US dominance.
Padding the mattress may or may not matter.
Precious metals is the way to go, if you ask me.
Socialist Franklin Delano Roosevelt confiscated American Gold in the 1930s.
Americans’ gold.
Both. The first couple of weeks of collapse, cash is king. You need a certain amount to transact when the banks are closed. Then, you need coins of the realm to transact until things get fixed. If things don’t get fixed, you need stuff to barter – think things that have sin taxes. It’s best to have doubles of everything you use in the pantry, bathroom, laundry, garage and garden. Have the car in great shape, your tools tuned up. If things don’t get fixed, you want fences, traps, weapons.
As automation made the skills of the modern blacksmith obsolete, I kinda lamented a time lost. However, if SHTF, it might be a good time to be that blacksmith and jack of all practical trades. We’ll see. Boning up on practical skills, stuff my mom knew from growing up on a farm during the Depression, can help IMO.
Rural/mountain people tend to stack deep so we don’t have to change much for survival situations. Good advice for others who live thin on inventory though, thanks.
I read somewhere yesterday that Peter Thiel advised people to pull their money out before it failed!
Here it is:
Thiel’s Founders Fund Withdrew Millions From Silicon Valley Bank
https://finance.yahoo.com/news/thiel-founders-fund-withdrew-millions-005223787.html
Peter Thiel’s Founders Fund and several other high-profile venture capital firms advised their portfolio companies to pull money from Silicon Valley Bank on Thursday, responding to panic about the bank’s financial situation in tech startup circles.
https://www.livemint.com/news/world/peter-thiel-fund-advises-companies-to-exit-silicon-valley-bank-11678456061549.html
How did they know?
The police were called when some investors tried to withdraw their money:
Earlier in the morning, building managers at Silicon Valley Bank’s Manhattan branch reportedly called the police after a group of tech founders showed up and attempted to pull out their cash.
https://nypost.com/2023/03/10/silicon-valley-bank-meltdown-sparks-contagion-fears/
Maybe they caused it intentionally. Maybe they want Powell to pivot
That was brought up by some of the commentators on that Roundtable you tube video that lasted for over 8 hours. One of the commenters wondered if their pulling their funds from that bank was in order to make a windfall, something about shorting stocks in certain companies that relied on that bank’s resources to stay in business. That conversation was in the last 20 minutes or so of that livestream and just as it was focusing sharper on those actions of Founder’s Fund the livestream was abruptly ended.
not believing in coincidences these days when big money moves are happening.
FDIC has reclaimed similarly withdrawn funds in the past.
It was known by insiders on Wednesday. All the “regulars” got tagged today.
“As startup clients withdrew deposits to keep their companies afloat in a chilly environment for IPOs and private fundraising, SVB found itself short on capital. It had been forced to sell all of its available-for-sale bonds at a $1.8 billion loss, the bank said late Wednesday.”
More evidence of the greatest economic recovery in history and not at all indicative that a “growth” recession is metastasizing into a depression.
Wells Fargo customers can’t access their accounts due to a tech glitch. Yeahhhhhh…..uh huh.
.. and some customers are saying their direct deposits disappeared or their bank balance is showing an incorrect or worse no money…. Yep sure seeeeems like a tech glich/s
If you don’t know what a “Bail-In” is, please learn quick.
Here’s one video that covers the subject from 41:00 to 1:05:00 or so.
https://rumble.com/v28ofr6-no-one-is-ready-for-whats-coming-in-2023-and-the-banks-are-in-deep-sht-reda.html
Kate Clark article titled ‘Panic in China’. China startups and SVB.
Tucker moved on quickly to closure of banks. Boy what a relief for him to not mention anymore of J6 videos. He rolled over and more money in the bank for him. Carry on Tucker you are just doing your job. You were my last hope for Fox……..
I cannot believe I am defending Tucker as I don’t watch him that much, consider him kind of 2 face and deep state lite. But here I go. Tucker is surviving. He showed the most damming footage as these were among the biggest J6 lies and the narrative is collapsing. I rather have him pull back and survive to broadcast another day, than insist on going forward, getting fired and the footage is therefore not broadcasted anyway. I wonder if he was ever going to show more this time? Perhaps the threat of more was utilized to cause the swamp creatures to out themselves and in such a spectacular way…and they certainly did.
Tucker lost me, not long after 9/11.
When he played dumb with it all. And insulted anyone who presented evidence of controlled demolition.
I had high hopes of him turning a page this week. And alas, not a single new vid. Sorry, but he folded, like a cheap tent.
This is the truth.
Or so it seems. Living to fight another day doesnt seem likely. Not on FOX anyways.
I think he even interviewed one of the professors involved in 9/11 research and attacked him (kind of like a deliberate hit job/smear job, not a true interview, not trying to learn about the professor’s findings). On 9/11, this is the best documentary I’ve found on it-I actually found it on Darren Beattie’s twitter (he challenged everyone to watch it, especially those in the military). Anyway, it’s almost 5 hours but destroys all aspects of the official narrative:
https://www.bitchute.com/video/Lp81hoFneM4z/
At this point, with things being so bad (Great Reset, bankers setting up a digital slave grid, etc.), I’m just appreciative of Tucker if he can get even slight amounts of truth out. He had Noem on to talk about vetoing the CBDC legislation that the legislature passed–so I thought that was good for him to cover that and call attention to what’s going on (most normies have no clue).
Tucker can get cancelled by FOX just as quickly and easily as they got rid of Bill O’Reilly and Lou Dobbs! He’s smart enough to live and fight another day!
Slow down. Tucker cannot ignore the impending bank/ financial collapse. He’s one man with multiple white hot stories to cover in one hour per day.
He has a family. His life and theirs may be on the line. He did a lot with that broadcast, fingered the coup d’état unequivically.
Periodically, I post the reminder about Tucker:
He has a contract with Fox.
Some one signs his paycheck.
Feels like a dry run.
There will come a Friday (could be today, but I doubt it), when a big fish is outed as fried. Rumors over the weekend will be that all will recover by Monday. Most people won’t know their gooses have been cooked until Tuesday rolls around and they can’t get their debit cards to clear.
The degree to which the media is hyping this bank’s failure feels like an attempt to trigger a wider bank run.
I see them conditioning people to do the opposite.
Give a couple “close calls” and have it all work out… Then, on a random Friday to Monday, it doesn’t… and every account is frozen and seized on the way out… Crying wolf too many times, people fall deeper asleep…
I’m right there with you. “That was close-glad the government stepped in to straighten it out” and people will go on about their busy day. After a few times people will get complacent. There are still so many people who can be easily soothed, easily tricked.
Yep, even after Covid, even after J6, all right there in our face and still the programming is strong. Decades of brainwashing coming to fruition.
Yep! Never let a crisis go to waste.
Very astute comment
Timcast had a live chat a short while ago from Matt Gaetz’s office, with Matt, Dan Bishop and Steve Bannon. In addition to great conversation about this bank failure, discussion about the feebs destruction of evidence of their involvement in J6.
In the late 90’s I owned a Securities Broker Dealer which through a unbelieveable chain of events was able to sell out to an affiliate of E*Trade. The day after we signed the letter of intent, SVB was all over me to open an account and deposit funds. They offered loans secured by the 144 Shares in E*trade, interest rates on deposits higher than market. It was a joke and the bank had great difficulty subsequent when the dot-com went bust. This bank has always operated on the edge and now went off it. The Fed better not bail them out. I am tired of this crap from Silicon Valley.
JPM bankers pull all-nighters to take on clients of Silicon Valley Bank
https://nypost.com/2023/03/10/jpm-bankers-pull-all-nighters-to-take-on-clients-of-silicon-valley-bank/
Gordon Gecko
Ever see the movie Margin Call?…that is more appropriate.
OK Republicans come to the taxpayers and tell us bailouts are good for us. Just try.
F&@k them. Let the whole of silicon valley burn to the ground and then all of California break off and sink into the pacific. Watch how fast the uniparty moves to shore up the losses of their donors with tax payer funds.
Does Nany Pelosi have money in this bank I wonder?
zerohedge (https://www.zerohedge.com/markets/300-billion-reasons-why-svb-contagion-spreading-broader-banking-system ) says that SVB is not the only bank with the problem of having huge net unrealized losses (the origin of this collapse). And it notes that … “the Fed may have no choice but to cut rates if it wishes to save the (regional) banking system. But then again, the Fed is still stuck fighting runaway inflation, which means that Powell is now trapped, and as we tweeted previously, Powell is now trapped: More hikes: regional banks collapse; Less hikes: inflation target must be raised.”
Remember that Sundance has repeatedly maintained that the inflation we are seeing is LARGELY due to energy costs, NOT demand. Excess money supply is secondary to the absurd energy policies of this MalAdministration and the resulting climbing costs of tightening energy supplies.
Powell has a goal in mind. I doubt this will deter him. If it does, the US$ is on the line as a currency.
Let’s not forget the debt limit clock is ticking away.
Sometime in June, the funds run out.
Extraordinary measures are already in place now. I know everyone has been lulled into the “Congress will never fail to raise the debt limit, it’s all kayfabe” – but, what if, amidst financial chaos between now and then, Congress suddenly pulls the sort of weirdness that just happened with the declassification of the origins of Sars-CoV2?
SVB … SBF … well, at least we know what’s he’s been up to while hiding out at Stanford….
Just a reminder. And remember, boys and girls, to give daily thanks while your COVERT-19 breadcrumbs keep your family fed.
https://www.usdebtclock.org/
My slice of the national debt: $246,867. And I’ve been concerned about my rent increase over the last two years. That and food inflation incinerated a good chunk of a juicy pay increase two years ago. I guess I lost my perspective. Could take a while to work off the debt I’ve accumulated having the elected represent me on Capitol Hill. Might be time to consider moonlighting.
Willing to work odd hours. Extensive hand tool experience. Team Player. Trained in Tiered Communications Plans. Interests include hunting and fishing. Pay negotiable.
International issue.
“Silicon Valley Bank Tanked, Dragging Down 500 Israeli Startups”
Article by David Israel
March 10, 2023
http://www.jewishpress.com
Article is brief, light on details of the 500 startups.
Huh.
Where does InQ Tel bank?
In some of his novels, Robert Heinlein moved the narrative along by presenting press headlines encapsulating how crazy the times were.
These are worthy of Heinlein. Unfortunately, they are real.
Silicon Valley Bank (SVB) Fails, Now the Idiots Are Considering a Taxpayer Bailout
Director Wray Brags the FBI Broke the Law 84% Fewer Times Last Year – Rep Darin LaHood Outlines Personal Targeting by FBI Analysts Unlawfully Searching NSA Databases
Huge – Iran and Saudi Arabia Agree to Resume Diplomatic and Trade Relations During Talks Negotiated by China
DeSantis Appears in Iowa as Campaign Manager and PACs Begin Positioning for Likely May Announcement
Michael Shellenberger Outlines Deep State Psychological Operations Being Conducted Against Americans
Matt Taibbi Releases Twitter File Review #18 – Whole of Government Censorship Approach, Including Senate Intel and Legislative Branch
For sure, the idea of losing all your money, overnight, will distract from the corrupt goings-on that are being revealed!
Let Newsom, Pelosi and Soros bail them out
I had this youtube Roundtable show on all day, it livestreamed for over 8 hours (played it in the background while getting work done), many different people with knowledge of that industry came in and offered their 2 cents all day long. Some of these people were quite informative, so learned a lot.
It didn’t help that our bank Wells Fargo had this message all day “If you see incorrect balances or missing transactions, this may be due to a technical issue and we apologize. Your accounts continue to be secure and we’re working quickly on a resolution”.
That message was there all day and now and then checking online news sites were stories about Wells Fargo customers having their direct deposits disappear, which started disappearing this past Wednesday and now many customers who had set up for automatic payments to be made from those same accounts are now overdrawn.
Been a long day and toward the last hour and half of the livestream a former FDIC worker explained what to expect to see happen over the weekend with those who had accounts at the SVB.
with what happened with SVB and Wells Fargo am finding it hard to believe in coincidences.
They’re the ones who have been profiting from unicorns. Fake investments making them rich while more and more working class people lose everything. They’ve siphoned off capital from productive investment. They’ve spied on us, interfered with elections and bought politicians. On top of it all, they’re arrogant. Glad to see them get their comeuppance… should that actually happen, if government doesn’t protect them for a future round of pillaging America.
Suddenly every DC pol will become very concerned about mom and pop’s retirement. It’s for the little people, just keeping us safe, protecting demockracy. It’ enough to make you hope an asteroid hits.
Being drawn and quartered might be suitable for this level of treachery.
Hanging from the neck until dead, simpler.
Don’t forget DEI
Breitbart has an article showing the SILICON VALLEY BANK CEO SOLD $3.57 MILLION OF BANK STOCK two weeks before the bank collapsed!
Hang these freaks by their BALLS.
This isn’t isolated. This doesn’t stem from the banks client base. This will occur for many small regional banks.
It has been created due to their deposits leaving for a higher return than the banks can offer or can afford. And the decrease in the value of the MBS and Treasuries. This requires the banks to recapitalize.
Most small regional banks are having similar stress as rates are increased to combat inflation.
I bought March 31 Put options today on the ETF KRE. My thesis is we are just starting to see the impact on these banks over the next few weeks. My turn to pick the meat off their bones for once.
Sorry Sundance I happen to swim in these venture waters and fundamentally disagree with your characterization of it. SVB does not stand as the lender to VCs, it stands as their banking institution.
VCs raise their money from funds, rich folks, and family offices. They have been sitting on large piles of cash since the White House was stolen.
Now I know that big tech is the bad guy and lots of those folks are liberal nutcases. I purposefully keep my enterprise far away from Silicone Valley anything… but this is a legitimate contagion.
During the last decade of easy money VC firms used that cash to leverage their investments. They have been extravagantly spending for a long time… they are invested in the obvious big tech plays but also in all the tech that runs Main Street too.
From POS systems to payment processors the bulk of the tech backbone of American is tied in some way to the VC firms that just lost $135B in deposits.
This is a Lehman moment and come Monday I expect at least 2-3 other major financial institutions to follow this same path.
What does it mean for you or I? It means the financial house of cards just lost a foundation card… stuff will start falling.
I agree this does not deserve a tax payer bailout. It does deserve a Fed Reserve bailout… they caused this through their insane monetary policy.
This is why they have been trying to start a War. The fiat system is collapsing.
Unfortunately you are wrong on this. It is a contagion and it will be shown as such beginning Monday.
Buckle up.
I’m a regular listener of “The All-in Podcast” with David Sacks and 3 other VC guys. Started listening last year on recommendation from my son who is in finance and consulting as a young analyst in California. David Sacks is going off on Twitter today about the regulators grading SVB an “A” bank a week ago, the Fed printing money, causing inflation and now raising rates constantly, and the Fed’s Yellen going to Ukraine days ago to let them know they are safe in their financial backing, but has not been heard from by American customers of SVB regarding their safety. He’s not exactly calling for a bailout yet, but wants SVB taken over by a big 5 bank with assurances to customers. He’s also calling for a new, regulated insurance product for investors exceeding the federal deposit guarantees.
Thanks. I WAS wondering. You confirmed my concern.
SD & Crew….the bailouts are inevitable at this point. They were in 08/09 too. These elites/banksters have nothing to lose. If the US economy goes into ICU they are in deep stuff. They wanted to implement this Reset by 2030. It is a lofty goal but with the rise of Populism and Awakenings I believe they feel cornered. One thing to understand, these elites are not going to simply jump ship again and setup shop. That is a debate for another time, but I do not believe it possible. Once the economy/military cannot be paid shit unravels real fast. I do NOT think we are at this point today…..but still!
There should not be any widespread panic this weekend. That will be contained around SVB and affiliates. Please make sure by Sunday evening you have some cash on hand. Fill up your tanks and grab some extra food and water. Not trying to freak anyone out nor recommend doing anything you will not eventually need. And you can always re deposit your cash.
Better safe than sorry…..Luke
Luke, I’m not really sure how to read the situation.
If you are right that an actual system-wide collapse (as opposed to a few limited bank failures) is coming super fast, as in early next week, then I don’t see that a bailout would help the average depositor. There would never be enough bailout money to make whole 100 million, 150 million or more empty personal bank accounts, not to mention the commercial accounts.
And separate from bailouts, in terms of the “federally insured” tag on bank accounts, federal insurance was never planned to have enough money to cover more than a limited isolated bank failure, not the collapse of the system.
Hopefully that’s not where we’re headed as I don’t see a few days or weeks of cash on hand would help in the face of utter system wide collapse.
Please understand I am not predicting SHTF lol…not yet. Most likely things will continue on for now. Watch how the media behaves my only advice aside from taking out a little cash, filling tank, extra food. People that spend their time and effort trying to domineer an event or a person always lose in the end.
It helps if you are unable to access your account for a few days or a month and you have to pay bills.
Any bank or institution with their fingers in SVBank has the potential to hiccup in a way that impacts many.
Janet Yellen on the 2009 Lehman Brothers collapse: Everything is fine, do not panic.
Peter Schiff on Twitter: “The U.S. banking system is on the verge of a much bigger collapse than 2008. Banks own long-term paper at extremely low interest rates. They can’t compete with short-term Treasuries. Mass withdrawals from depositors seeking higher yields will result in a wave of bank failures.” / Twitter
Peter Schiff isn’t wrong, just myopic. While I’m sure he’s correct that all banks are impacted, he refuses to consider the impact on the rest of the world as well.
If the US blows, so does Canada, the EU and especially China.
Consider that.
She is a senile idiot!
Today was payday for me, but due to our third-party payroll company utilizing SVB, none of us were paid and they were not able to give us a day or time that we would be. I do not bank with Wells Fargo, or SVB, personally, but they’ve still managed to screw our near 75 [roughly] person team.
Thank God Zelenskyy doesn’t have to worry about where his next meal comes from, though. /sarc
Who is your third party payroll company? We use Time and Pay. Hope it’s not them. We have payroll next week!
Cramer had a bad record during the MBS collapse, too.
Yep, I was just about to bring him up. Whatever he says, do the opposite.
Exactly. Cramer is like a compass that has the wrong end of the needle painted red.
He offers opinions on so many companies that there is no way he has adequately researched them, even assuming he has a decent-sized staff.
IMHO Cramer does ‘pump and dump’.
Cramer is a paid establishment carnival barker. Listen to him only to find out what the establishment wants you to do, as opposed to what you should be doing.
China is laughing their heads off at us.
China is in deep deep doodoo right along with us.
China has massive gold reserves, and the ability to trade for oil in yuan.
Yes, and solidifying alliances all over the planet. If things go sideways, all that technology that U.S. corps installed in China to line their pockets selling us cheap goods? Poof, China takes it. Nationalized. What are we gonna do, nuke them?
Could it be a way of recouping past campaign contributions? Crafts buggers.
The chickens are coming home to roost. Decades of 0% interest rates. Oh look a war!
And it’s gone (original) – YouTube
My brother-in-law is a CFO who specializes in taking tech companies from start up to IPO.
He’s been on the phone all day dealing with the fallout from this mess.
He said that he’s obtained billions of $$$ in VC through this bank over the years.
He said it’s far more serious than most people realize.
“Too big to fail”, in 3….2….1…..
The economic consequences of Powell’s deliberate ignorance on the impact of Biden’s oil and natural gas production cuts on inflation while simultaneously raising interest rates and killing technology stocks! As John Wayne said “Life is tough. It’s tougher when you’re stupid!”