The Demise of Silicon Valley Bank

the bank is closed.

the stock went to zero

the owners of that bank lost millions. Even billions collectively.

But sure, they were paid well until they lost their jobs. No need to feel bad for them. But they lost a carpload of money when their shares went to, and I can't overstate this, Z-E-R-O.

Wait, what? Exactly how is Biden at fault for these banks failing who were knee deep in the crypto markets?

It goes beyond the ownership of this bank. The federal govt is bending rules of deposit insurance, at the cost of the taxpayer, either directly or indirectly. It's not as cut and dried as SVB as a siloed entity.

Bad message from the Fed and the Administration.

banks are going to pay for making depositors whole. Not taxpayers in general. Other banks. Do you understand that?

I mean sure, banks will probably pass on higher costs to their depositors, but it's not directly taxpayer money. And if depositors don't like higher fees they can go do something else.

Conservatives should like this solution. Private enterprises going under and private enterprise funding the survival of the banking system.

Can I have Cliff notes here:

- Silvergate Capital failed on Mar 8

- SVB failed on Mar 10

- Signature Bank was shut down on Mar 12

I have heard that 3 more banks are expected to fall today. Is that correct?

This string of failures is going to cause a pause on fed Monetary policy (Powell will pause interest rate hikes because of these failures). SVB had a bunch of worthless paper on their balance sheets because of the quantitative tightening.

This is going to cause inflation to continue to run unchecked. Guess who pays for that? The tax payer. Your money is worth less and less because the fed now has to throw the brakes on QT.

now you are guessing at the future. We can't know what inflation will do going forward. Unchecked? Are you aware that interest rates have gone from zero to 5% in about a year? Money supply is shrinking, etc. Inflation is being checked.

certainly inflation has been cooling and it should continue to cool.

And no. SVB did not have worthless paper - they had long term bonds. They lost value temporarily, sure, but they were not worthless. They will mature at full face value, down the road.

Your exaggerations are absurd and you should stick to stating facts, not wild hyperbole. Hurts your credibility.

If you asked a week ago, we were almost certainly priced in for a 25-50bps increase at end of March. We got a strong jobs report, even JPow was speaking hawkishly. How is inflation even checked? Last report was still 7% which is very out of guide, for a target of 2%. Rates were going up at the end of March.

Watch how quickly that tune changes moving forwars. There's a good chance they don't do anything and inflation continues at a runaway pace. Im guessing 0 to 25bps.

Moral hazard on steroids has been introduced into the US banking system. Senior management of a bank now has carte blanche to do just about anything they wish with the depositors money. It's all covered in full. The $250K limit has been removed.

For the bankers, it's party time.

Senior management of the banks have a lot of money in their bank’s stock. They don’t want it to go to zero, so they will be cautious. In general.

Again, the hyperbole.

inflation is in no Way at a runaway pace. It is slowing. 6.4% at last report.

and the Fed’s inflation predictor has it falling into the fives and lower quite soon.

Zero change for an increase. My guess would be that we see an emergency cut sometime later this week.

The only thing that is guaranteed with record rainfall in California is record fires. Its going to be a horrible autumn. Santa Ana winds blowin' hot from the north ....

Hyperbole? You sound like Biden and JPow back when they were saying inflation was "temporary" and "transitive". Lmao

Inflation is literally 5% higher than target, and you're calling me hyperbolic. How tone deaf.

anybody hear anything about:

- First republic

- PacWest Bancorp

- Western Alliance Bancorp

The American banking system was once the envy of the free world. It was a vital part of American free enterprise enabling millions of Americans to build their financial dreams. Biden and his FDIC/ Treasury goons have reduced it to rubble in a matter of days with their disastrous financial policies designed to punish American workers.

"It was Ja Biden who did this!"

How?

"With his... policies!"

Which ones?

"The woke ones!"

Just shut your dumb yaps. The repeal of government regulation and the moronic arrogance of the libertarian Venture Capital class (i.e. Republican donors) caused this.

Canary in the coal mine totally wasn't FTX or anything, which donated almost singlehandedly to Democrats.

They totally got 100% justice by sending SBF home on time out house arrest to play on his Ipad. Glad the depositors were totally made whole by clawing back donations from the Democrats.