Is anyone here who can explain to me in retard words what this svb drama is and why it's so different from otger dramas it deserves it own sticky?
svb
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I've literally never heard of this bank before this drama and neither has anyone else here. This is getting way overblown out of proportion, as usual.
Wells Fargo had money tied up in that bank and now they are crashing as well
Bank fund tech start ups and vc, tech start ups have way more then the $250,000 max gov insured. Tech companies can’t use money and go boom
A lot of cash is burning.
Rich people, especially Journos are getting fucked.
So we actually hear about it this time.
apparently svb was the only bank retarded enough to loan money to startups burning massive amounts of money and short runaways
Fucking hilarious. Loan to tech startups in a heated bubble environment, and blow all of your deposits on pre-hike low interest T bills and pretend you never have to liquidate anything because nothing will ever happen
Americas 16th largest bank just collapsed, after a run on it's available capital. The problem is, if panic starts spreading now. The FDIC deposit insurance scheme only covers max $250,000 - as a California tech bank, nearly all of sbv's clients will be above that - and if panic spreads to other banks, they'll shut everything down, until morale improves. Otherwise, even the FDIC will collapse. tldr, its musical chairs but for real and somewhere, a fat lady JUST stopped singing.
how much does the fdic have to cover all the american banks?
heres le twitter screencap
https://twitter.com/gaborgurbacs/status/1634329302845079555
well I’m sure they will save it for the common man in case of widespread bank trouble and not just bail out the first batch of rich folk who get in a bit of trouble
It's a pass-through scheme, which basically means the pain gets shared around. But not many banks will survive a run at anytime, and if the banks starting collapsing like dominoes, the scheme is basically worthless as well. Which is why shit would get shut down 1st. Can't withdraw if the banks closed, sorry got.
IIRC $200B or so. If it needed to pay more, expect Congress to intervene.
>Americas 16th largest bank just collapsed
>16th largest
oh ok. so a nothingburger like usual. No one has even heard of this bank before. retarded bobos always blow shit out of proportion. another bank will buy them out by monday, people will get most of their money back and nothing will happen
Congratulations! on making it to the end of the first sentence.
Some of the best stocks act like bonds, and some of the worst bonds act like stocks. I don't see how someone with, say 10 million in svb will get their money back, unless other anons know something.
They had tons of money tied up in low interest bonds, had to sell at a huge loss because bond rates are now higher, so nobody will pay full price, and came up a billion or so short. This is compounded by the fact that the companies they lend to are also having trouble paying back what they owe. This started a panic and everyone withdrew their money. Now the bank has no money, everything grinds to a halt
Not only were the bonds low interest, they were long maturity. Their "risk manager" didn't expect interest rates to rise as much as they did.
It means you shouldn't be playing in the markets if you are this clueless.
It's fine. Buy some BTC and don't worry about it. Or if you don't like Bitcoin, buy some Vanguard funds. This shit is blown way out of proportion and it is causing a knockdown effect. It'll blow over soon enough unless someone drops a nuke.
a nuke like if credit suiss went insolvent?
No, like a real, physical nuclear weapon detonation in a populated city.
They're crippling internet commerce. Paving the way for crypto payments on web3. Get ready for the golden bull run.
FDIC is insolvent
Here is your explanation