[BrianC]

Silicon Valley Bank was closed Friday by the California Department of Financial Protection and Innovation, with the Federal Deposit Insurance Corp. as receiver, the FDIC said in a statement. All insured depositors will have full access to their insured deposits no later than Monday morning, the FDIC said. Uninsured depositors will get a receivership certificate for the remaining amount of their uninsured funds, the FDIC said. As the agency sells off Silicon Valley Bank's assets, future dividend payments may be made to uninsured depositors, according to the statement. Until now, there had only been a dozen US bank failures since 2017. Those failures were usually due to weaknesses in credit quality with losses overwhelming balance sheets, Bloomberg Intelligence's Herman Chan told me last week. Silicon Valley Bank had 17 branches in California and Massachusetts. The company's main office and all Silicon Valley Bank branches will reopen on Monday, the FDIC said.
https://news.slashdot.org/story/23/03/1 ... a-receiver

[theluckycountry]

Uninsured depositors will get a receivership certificate for the remaining amount of their uninsured funds, the FDIC said. As the agency sells off Silicon Valley Bank's assets

What assets? banks these days just hold liabilities, and certainly no real estate, everything is leased. Probably duded the lessors too. Anyway were only talking about 150 Billion of uninsured deposits, the wanna-b-rich that bought into crypto have lost a lot more than that since the peak.

What's going on? At the end of the oil age the massive amounts of paper wealth have to be cleansed off the books. These accounts, the private pensions, even the Governments SS is based on "Future" profits. But in the past 100 years nearly all of our profits have come via the use of cheap hydrocarbons. Take them away and the future is severe austerity.

Real stuff, oil in the ground, Gold, farmland, these are the assets of the future and the paper money pyramid we have built dwarfs them. But the dreamers still play with the paper accounts, betting on the stock market like it's 1999. I had a friend who lost $500k in the GFC when a family finance business imploded. It effected his whole life, and even though he was still wealthy he couldn't get over it, lost the will to live basically and was dead in a couple of years. It doesn't pay to get greedy when your a little player.

[Plantagenet]

The real question is whether the failure of SVB is just another step on the road to another bank crisis.

Already bank runs are starting at at other banks with exposure to the tech and crypto sector, and their stock price is plummeting.

One bank seeing a stock price collapse deals mainly in real estate....as the price of US real estate falls it puts tremendous pressure on banks who hold a lot of mortgage loans.

We've seen this all before when we had the sub-prime mortgage crisis.

A banking crisis is a really great way to start a recession.

A collapse in housing prices is another great way to start a recession.

Collapse in the stock market also can lead to recession.

And too much inflation can also kill the economy.

And having a senile old guy as President whose main accomplishment is in exploding the deficit spending and the federal debt doesn't help either.

I'm getting a bad feeling about the banking system....starting with the collapse of FTV and the other crypto banks and now moving into regional bank failures, the whole banking system is looking like a house of cards....


the whole banking system is looking like a house of cards....

Cheers!

[AdamB]

And having a senile old guy as President whose main accomplishment is in exploding the deficit spending and the federal debt doesn't help either.

What, you were taught scientifically accurate by monkeys in a zoo?

[mousepad]

Wow. Good picture.
I didn't know the nigerian was that bad. Triple the deficit on average compared to Georgie.
Trumpy had tough luck with the china virus. And sleepy got lucky with getting a humming economy and full employment zooming out of covid.

[AdamB]

Wow. Good picture.
I didn't know the nigerian was that bad. Triple the deficit on average compared to Georgie.

Amusingly, each Democan who came into office since Clinton was curing the economic mess that the prior Republicrat administration left them with. I've always loved that fact when VT got all uppity about Republicrats being so fiscal and all.

But yes, Obama spent a bunch of money fixing the disaster that King George II left the country with, and Trump was able to keep it stable until his train wreck came along. But it is cool that Biden has managed to stop the bleeding without spending the kind of coin that Obama did to cure the problem he was handed.

Trumpy had tough luck with the china virus.

Yup, the seditionist sure demonstrated that xenophobic, misogynist, white nationalists might not have a clue on how to manage an economy under stress. He enjoyed Obama's recovery as long as he could, but you can only ride someone else's coattails for so long.

And sleepy got lucky with getting a humming economy and full employment zooming out of covid.

Sleepy certainly passed legislation, kept his head down, let his calm sleepy nature and solid planning ooze out into the markets and public, calm down the hysteria and get the economy running again. Unfortunate that he is trending senile, but between senile but a mostly reasonable person and a senile traitor who likes Hitler, most of us probably would prefer a reasonable person. And did, as it turns out, if landslide election results are any measure.

[careinke]

The real question is whether the failure of SVB is just another step on the road to another bank crisis.

It feels like 2008 all over again for the banks, only this time it will be on steroids.

97% of money held by SVB is NOT insured by the FDIC. The FED are probably trying to find a buyer before Mondays Open. Most of the money held by SVB are start up companies, for things like Payrolls and other banking services. Maybe JP Morgan picks this one up?

As the second largest bank failure in U.S. history, the odds are pretty high this will increase contagion to other banks. Real estate prices are also falling in large areas of the U.S. and buyers are scoffing at high interest rates.

SVB's failure has also had an affect on the cryptocurrency markets, causing the depegging of USDC and USDT from the USD. Primarily because SVB held a lot of US dollars to back up these stable coins at 100% of US dollars or bonds. Now that money can not be accessed to back up the stable coins. At one point today USDC was at $.94 and USDT was $.96, this has never happened before. As I write this it appears USDT has recovered to $1.00 but USDC is still depegged at$.955.

Not surprisingly, Bitcoin has risen in price since the announcement of SVB's failure. There are several reasons for this, my favorite is Bitcoin was developed in response to the 2008 bank failures. It was designed to give the holder of Bitcoin ownership of the currency without the use of intermediaries like banks. So far, it seems to hold up. This coming financial recession/depression will be a good test.

Another reason for BTC not dropping, is people using Decentralized Exchanges do not use USD because they are decentralized, unlike traditional exchanges. Instead, they use stable coins. So if you want to dump your stable coins on a decentralized exchange and can't buy dollars, the best option is to convert it to Bitcoin.

I have some Limit Buys set up on BTC for $19,000.00 and $18,450.00, I wonder if they will ever be filled.

Peace

[careinke]

Bitcoin continues to climb. Fasten your seatbelts, all markets will be shaky tomorrow.

Peace

[AdamB]

Bitcoin continues to climb. Fasten your seatbelts, all markets will be shaky tomorrow.

Peace

<yawn>

The only time worth investing is when there is blood in the street. There hasn't even been a decent dip worth piling into in the markets since 2008, I pegged what it would take with VT, and the S&P didn't even make it there. Someone wake me up when the S&P hits 3000 and I'll think about whether or not that still holds as a "blood in the street" market for me to begin jumping in.

[careinke]

Bitcoin continues to climb. Fasten your seatbelts, all markets will be shaky tomorrow.

Peace

<yawn>

The only time worth investing is when there is blood in the street. There hasn't even been a decent dip worth piling into in the markets since 2008, I pegged what it would take with VT, and the S&P didn't even make it there. Someone wake me up when the S&P hits 3000 and I'll think about whether or not that still holds as a "blood in the street" market for me to begin jumping in.

Your right. Why do you think I was buying BTC last week. Lots of blood in the crypto markets last week. Since friday I have had some nice gains.

Now it's the Banks turn.

Peace

[AdamB]

Bitcoin continues to climb. Fasten your seatbelts, all markets will be shaky tomorrow.

Peace

<yawn>

The only time worth investing is when there is blood in the street. There hasn't even been a decent dip worth piling into in the markets since 2008, I pegged what it would take with VT, and the S&P didn't even make it there. Someone wake me up when the S&P hits 3000 and I'll think about whether or not that still holds as a "blood in the street" market for me to begin jumping in.

Your right. Why do you think I was buying BTC last week. Lots of blood in the crypto markets last week. Since friday I have had some nice gains.

While I don't mind speculating in the markets, I do mind speculating on something that I myself wouldn't even take in trade for a cup of coffee. So, someday when the bugs are ironed out, maybe. But that'll be after I'm dead I imagine, if at all. My kids can worry about if digital currency has any value.

[theluckycountry]

If anyone took a big hit in the GFC then they need to be on their toes, or out of paper all together. Certainly we've had a great run these last 14 years, considering, but the headwinds are phenomenal now. The whole plandemic reaction has yet to be priced in.

[mousepad]

My silicon valley startup was affected by SVB. Without Sleepy, couple of millions would have been gone and we probably would have to close shop. This time I'm benefiting. But once again Sleepy is putting special interests (tech bros) before the american public. What a traitorous douchebag. It's not enough that Sleepy facilitates a 3rd world invasion into our country. Must he also steal from the public to give to special interests? What a traitor. What's the penalty for high treason? Death by hanging?

[AdamB]

What a traitorous douchebag.

Sleepy he might be, but he hasn't attempted to overthrow the transfer of power to the duly elected by the American people representatives yet. We'll have to wait 2 more years to get a handle on that. But I'll give you that he might have his moment of being tested just as the last Administration did, and we'll see if he mismanages the economy into The Greatest Recession Since The Great Depression like the last geriatric and demonstrable traitor did. Time will tell.

It's not enough that Sleepy facilitates a 3rd world invasion into our country. Must he also steal from the public to give to special interests? What a traitor. What's the penalty for high treason? Death by hanging?

You subscribe to the Replacement Theory mayhap? And so far, we're still working through what to do with the last traitor, it will require time to see if Sleepy tries to subvert the transition of power to his advantage in 2 years to get him into the same category. But MAGA world has hopes!

[mousepad]

You subscribe to the Replacement Theory mayhap?

Once you die you will be replaced. All are replaceable. Why is that a theory?

[jato0072]

Replacement Theory

Right. When in human history have people not been displaced or replaced? It is the way civilizations actually work.

If anyone took a big hit in the GFC

I think about all of the people who benefited from the GFC. The Elite can privatize the gains and socialize the losses. Same as it ever was.

[Plantagenet]

My silicon valley startup was affected by SVB. Without Sleepy, couple of millions would have been gone and we probably would have to close shop. This time I'm benefiting. But once again Sleepy is putting special interests (tech bros) before the american public. What a traitorous douchebag. It's not enough that Sleepy facilitates a 3rd world invasion into our country. Must he also steal from the public to give to special interests? What a traitor. What's the penalty for high treason? Death by hanging?

You were very lucky. Congrats.

And it might be worth it if it actually stopped the bank panic. But.....the idiots in the Biden administration couldn't leave well enough alone.....

Just this morning Janet yellen gave a speech and made it explicit. Only certain special banks will be bailed out and have their depositors protected....like those in California and New York just were. But other banks....ones that aren't special.....well those they will to go bankrupt and all the depositors will lose their money. So which banks aren't "special"...? ....Yellen didn't say but I bet if there is a bank run in Florida or Texas they shouldn't expect much help from the Ds in the Biden administration.

Sure enough....the stock market immediately tanked again.

And now that Yellen announced there won't be help for some banks that she doesn't want to help, I I expect for more bank runs now....precisely at those banks that aren't special enough to deserve help from the Ds in DC.


Janet Yellen just said bank runs are OK again...but only at banks she doesn't want to help out.....what kind of idiot is she????

Cheers!

[jato0072]

Don't watch what they say, watch what they do. There are conspiracy theories which state this "crisis" is just another excuse to consolidate (financial) power. From the "middle class" to the Elite. We should try and pay attention to what is going on, but there is so much noise.

[Plantagenet]

Don't watch what they say, watch what they do. There are conspiracy theories which state this "crisis" is just another excuse to consolidate (financial) power. From the "middle class" to the Elite. We should try and pay attention to what is going on, but there is so much noise.

Oh...there's a crisis all right. In fact there are several of them.



Joe Biden's policies have created the worst inflation in 40 years. Thats the first and main crisis, and its caused a bunch of related crisis.

Then Biden and the Fed lied about the inflation being "transitory" for a year. The lies weren't a crisis themselves but they delayed things and made the inflation crisis worse.

Then the Fed suddenly decided they had to do something fast so they raised interest rates more quickly than had been done in decades. This caused job losses and other problems and is taking the country into a recession. Crisis #2

Thousands of Banks across the USA that been "safely" investing their depositors money in government bonds suddenly discovered their bonds had lost ca. 50% of their value as interest rates shot up. Some banks were now insolvent but the Fed regulators ignored the problem and did nothing. Crisis #3.

Private investors noticed that some banks were insolvent and their stock prices started to plummet. Then people started to pull out their deposits. Now we had runs on banks. Crisis #4.

And finally, we've got the crazy policy decision from senile Joe Biden and idiot Janet yellen to bail out depositors at some "special" banks but not at other banks, with no explanation of what makes a bank special or not. Apparently the "special" banks are the ones where big D donors keep their money, like SVB. Their policy means that US and Chinese billionaires with money at SVB get a government bailout, but working class folks and American farmers in, say, Oklahoma who may have to deal with a bank crisis won't get bailed out.

Thats utterly nutty, but that is where we are right now. The biden policy is to give Bailouts for D billionaires if their bank has a run, but none for regular working class Americans in the heartland if their bank has a run.

SHEESH!!!!!!