Unforgiven Posted March 12, 2023 Share Posted March 12, 2023 (edited) The beginning of the next great depression, or another govt bailout. This is serious business. https://www.cnbc.com/2023/03/10/silicon-valley-bank-collapse-how-it-happened.html Interesting read on what the people who ran the bank were fixated on, no surprise. https://12ft.io/proxy?q=https%3A%2F%2Fwww.zerohedge.com%2Fnews%2F2023-03-10%2Flulz-svb-website Edited March 12, 2023 by Unforgiven 1 1 Link to comment Share on other sites More sharing options...
B-Man Posted March 12, 2023 Share Posted March 12, 2023 Shocked Not Shocked: Failed Silicon Valley Bank Victim of Its Own Woke Green Energy Priorities https://redstate.com/bobhoge/2023/03/12/shocked-not-shocked-failed-silicon-valley-bank-victim-of-its-own-woke-green-energy-priorities-n715294 . 1 2 1 1 Link to comment Share on other sites More sharing options...
LeviF Posted March 12, 2023 Share Posted March 12, 2023 Just your friendly reminder that everything - the “experts,” credentialers, the fourth estate, etc. - it’s all BS all the way down. You can safely ignore them. 1 Link to comment Share on other sites More sharing options...
B-Man Posted March 12, 2023 Share Posted March 12, 2023 WHY SILICON VALLEY BANK FAILED By John Hinderaker Economist John Phelan offers this succinct explanation of how government policies contributed to the collapse of SVB: On Friday regulators shuttered Silicon Valley Bank (SVB) and seized its deposits in the largest U.S. banking failure since the 2008 financial crisis and the second-largest ever. We shouldn’t be surprised. Neither should we relax. To recap: Between June 2006 and December 2008, the Federal Reserve’s target for the federal funds rate was cut from 5.25% to 0.00-0.25% as the economy crumbled and it stayed there until December 2015. By the end of 2019 it was still only at 1.50-1.75%. Then, in 2020, the Federal government borrowed vast sums of money in the name of fighting COVID-19. To keep the cost of all this borrowing down, the Federal Reserve printed a load of money and used it to buy Treasuries, effectively capping the government’s borrowing costs. This infusion of new money led to inflation, with the year over year change in the Consumer Price Index rising from 0.2% in May 2020 to 8.9% in June 2022. To fight this, the Federal Reserve is now stamping hard on the monetary brakes: the target range for the federal funds rate has been raised from 0.00-0.25% on March 16, 2022, to 4.50-4.75% now. As monetary loosening pushed Treasury yields down in 2020, so tightening has pushed those yields up in 2022. The Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity, Quoted on an Investment Basis, has risen from less than 1.00% through 2020 to over 4.00% more recently. These gyrations have roiled markets and led to the collapse of SVB. A financial institution, like SVB, essentially raises funds either wholesale (from capital markets) or retail (from depositors) at a rate of X% and makes loans that generate a return greater than that. When it seeks to raise funds, it is in competition with, among others, the Federal government. The government cannot go bankrupt – it can always get the Federal Reserve to print the money needed to cover its liabilities – so the rate at which the government borrows is a benchmark: If the government will pay you 4.00% to borrow with no risk of default (nominal, at least), you won’t lend to anyone at a rate below that. So, as Treasury yields – the price government has to pay to access capital – have risen as a result of the Federal Reserve’s monetary tightening, financial institutions find that the price they have to pay to access capital is rising also. This is the squeeze that caught SVB. Catering to fintech companies which, like the rest of the tech sector, have been taking a battering recently – look at all those job losses – SVB found that its depositors were withdrawing their capital More at the link: https://www.powerlineblog.com/archives/2023/03/why-silicon-valley-bank-failed.php . Link to comment Share on other sites More sharing options...
Mynamemike Posted March 12, 2023 Share Posted March 12, 2023 (edited) Lol https://www.svbsecurities.com/team/joseph-gentile/ Edited March 12, 2023 by Mynamemike Link to comment Share on other sites More sharing options...
Gene Frenkle Posted March 12, 2023 Share Posted March 12, 2023 It's all about to come crashing down. No bailout for SVB, says Yellen. Monday will be a bloodbath. 1 Link to comment Share on other sites More sharing options...
Gene Frenkle Posted March 12, 2023 Share Posted March 12, 2023 @B-Man SVB failed because they made risky long-term bets at 0% interest rates and weren't prepared for the Fed to raise rates so quickly to combat inflation. Guess what...they're not the only one. This is Wall Street getting addicted to free money and thinking it would never end. Their risk is all interconnected too. This has been brewing since 2008. I say eff em this time. Bail nobody out and let them fail like they should. The days of privatized gains and socialized losses need to end now. 2 Link to comment Share on other sites More sharing options...
ChiGoose Posted March 12, 2023 Share Posted March 12, 2023 5 minutes ago, Gene Frenkle said: @B-Man SVB failed because they made risky long-term bets at 0% interest rates and weren't prepared for the Fed to raise rates so quickly to combat inflation. Guess what...they're not the only one. This is Wall Street getting addicted to free money and thinking it would never end. Their risk is all interconnected too. This has been brewing since 2008. I say eff em this time. Bail nobody out and let them fail like they should. The days of privatized gains and socialized losses need to end now. You don’t understand. Something bad happened, so it has to be the fault of liberals somehow. 1 Link to comment Share on other sites More sharing options...
B-Man Posted March 12, 2023 Share Posted March 12, 2023 1 Link to comment Share on other sites More sharing options...
aristocrat Posted March 12, 2023 Share Posted March 12, 2023 If you think the fed is gonna let them fail you’re crazy Link to comment Share on other sites More sharing options...
Gene Frenkle Posted March 12, 2023 Share Posted March 12, 2023 3 minutes ago, aristocrat said: If you think the fed is gonna let them fail you’re crazy F em all Link to comment Share on other sites More sharing options...
Joe Ferguson forever Posted March 12, 2023 Share Posted March 12, 2023 52 minutes ago, Gene Frenkle said: @B-Man SVB failed because they made risky long-term bets at 0% interest rates and weren't prepared for the Fed to raise rates so quickly to combat inflation. Guess what...they're not the only one. This is Wall Street getting addicted to free money and thinking it would never end. Their risk is all interconnected too. This has been brewing since 2008. I say eff em this time. Bail nobody out and let them fail like they should. The days of privatized gains and socialized losses need to end now. https://thehill.com/homenews/sunday-talk-shows/3896422-porter-on-silicon-valley-bank-collapse-you-cant-bet-on-interest-rates-staying-low-forever/ 1 Link to comment Share on other sites More sharing options...
Unforgiven Posted March 12, 2023 Author Share Posted March 12, 2023 1 hour ago, ChiGoose said: You don’t understand. Something bad happened, so it has to be the fault of liberals somehow. more projection, how about an original thought ...all you nazis go knee jerk with trump being the epicenter of everything. it was a libtard run company in any case. lol@you 1 1 1 Link to comment Share on other sites More sharing options...
Unforgiven Posted March 12, 2023 Author Share Posted March 12, 2023 1 Link to comment Share on other sites More sharing options...
Gene Frenkle Posted March 12, 2023 Share Posted March 12, 2023 49 minutes ago, Unforgiven said: more projection, how about an original thought ...all you nazis go knee jerk with trump being the epicenter of everything. it was a libtard run company in any case. lol@you Did he not repeal the regulations that would have prevented this after SVB lobbied for it? How is that fact knee-jerk? Link to comment Share on other sites More sharing options...
BillStime Posted March 12, 2023 Share Posted March 12, 2023 Funny - the cult didn’t say a word about the 15 banks that failed under Conald Trump. 1 Link to comment Share on other sites More sharing options...
Joe Ferguson forever Posted March 12, 2023 Share Posted March 12, 2023 nice review from a stanford economist https://www.cnn.com/2023/03/11/opinions/svb-tech-industry-government-intervention-duffie/index.html Link to comment Share on other sites More sharing options...
BillStime Posted March 12, 2023 Share Posted March 12, 2023 Just now, redtail hawk said: nice review from a stanford economist https://www.cnn.com/2023/03/11/opinions/svb-tech-industry-government-intervention-duffie/index.html Don’t bother - Stanford is too DEI for the cult. Link to comment Share on other sites More sharing options...
SoCal Deek Posted March 12, 2023 Share Posted March 12, 2023 Isn’t blaming Trump for this bank failure akin to blaming Obama for the depleted national stockpile of ventilators? Shouldn’t Joe, Chuck or Namcy have fixed this already? Or is that too logical for everyone? 1 Link to comment Share on other sites More sharing options...
Joe Ferguson forever Posted March 12, 2023 Share Posted March 12, 2023 1 minute ago, BillStime said: Don’t bother - Stanford is too DEI for the cult. I've given up on edumacating them. I thought some actual smart people would like more info on the outlook for the economy from a perspective of knowledge Link to comment Share on other sites More sharing options...
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