Banking failure

[Austrian Economics]

I had never heard of Silicon Valley Bank until today, and was surprised to see that it is the 18th largest bank in the U.S. with over $200 billion in assets.

The trip from "good cash flow" to "lost 60% of its value" to "in receivership" took about 2 days.

Another Bear Stearns moment.

This is what zero percent interest rates get you.

https://www.zerohedge.com/markets/expect-mass-layoffs-real-world-impact-svbs-failure

[TOM4CWB]

US FDIC shut down Silicon Valley…

They have 151$Billion in uninsured deposits… all the tech layoffs are coming home to roost…. Money not going in as fast as being withdrawn…

$250K limit on insured deposits… in the US…

CDIC in Canada… $100K! At Chartered Banks…

What insanity. Why isn’t the limit $1Million????

Land is worth 10x 2000 levels…. Combines and Tractors… close to the same….



Trust the Government????

Cheers

[errolanderson]

Contagion risk . . . Bank failure rippled across equities and commodities this week. Credit markets impacted. Silvergate crypto bank also belly-up. One major Swiss bank appears ready to call it a day as well.

Fed talking tough about rates mid-week likely spooked. USD tumbles today as result . . . .

Take me to your leader? What leader? How the cookie crumbles.

[biglentil]

Sounds alot like a bank run. Beware the Ides of March comes to mind. Things sure can change quick, lets hope its not the first domino to fall. Contagion in the financial sector can spread like wildfire in a world of a quadrillion dollars of derivatives. A half dozen customers could empty a banks tellers and atm's cash these days.

[Taiga]

Yep Credit Suisse is on life support.

Lumber cratering as home building hitting rock bottom.

[TOM4CWB]

Receiver Certificate… if over $250K…. That would make you stop cold if banking there…



A 200$ Billion Bank… isn’t spare change…

Cheers

[Austrian Economics]

I'll make a prediction: despite crypto getting a lot of the blame for this mess, central banks will be forced to bail out the depositors who invested in them. The losses to the banking system will be too large to ignore, as much as people would like to see crypto get what they believe is coming to it.

Crypto is just a symptom of a failing monetary system, not its cause.

Sometime in 2024, interest rates will go right back to zero and start to drift into negative territory. This will provide fuel for the next scam, which people will cheer until the moment it explodes.

[ajl]

According to one article, 87% of deposits were not insured. Could be false because how is that even possible? We deal with several banks here in order to stay under the $100K guarantee and find some decent yield. Don't know which one will fail first but the bigger surprise is that none of them have failed yet.

[jazz]

SVB is not a bank in the traditional sense. Its a venture capital slush fund scam and the unicorns it has funded were never going to be profitable. These so called investors and depositors were wait for IPOs on the companies to make 10x in the market. And that doesnt look like its going to happen for a while with 6% interest rates and a market down 40%.

But, main main stream banks may be investors as well. Hence the contagion effect.

[shtferbrains]

Would a run on a bank be people lined up at the door or would it be thousands of people trying to do it on line?