13Mar
Curious why we saw a bank run in the United States as Silicon Valley Bank collapsed? Want to know if there is a contagion that may spread to other banks? Peter St Onge breaks it down. #Curious #bank #run #United #States #Silicon #Valley #Bank #collapsed #contagion #spread #banks #Peter #Onge #breaks
Curious why we noticed a lender run in the United States as Silicon Valley Lender collapsed? Want to know if there is a contagion that may well distribute to other financial institutions? Peter St Onge breaks it down.
Curious why we saw a bank run in the United States as Silicon Valley Bank collapsed? Want to know if there is a contagion that may spread to other banks? Peter St Onge breaks it down. from Bitcoin
Comments (11)
The fair thing to do is let the failures fail and let the little, responsible guys who aren’t failing step in, grow their businesses and thrive.
But, the cronies… the criminal cronies own and operate enough of the criminal politicians. This is not “freedom”. This is not a free market. This is the road to serfdom.
With the interest rate up, **all debt has lost market value**, not just treasury bills, -notes, and -bonds. Corporate bonds too. Credit card debt too. Mortgage debt too. And so on.
That is not really a problem if the financial institution can hold the debt till maturity. A run on the bank, however, forces the financial institution to liquidate this debt at a loss.
All of this potentially freezes the trade in existing debt paper. It is obvious that this problem is going to cause liquidity problems all over. As a financial institution, you’d better do not need too much cash right away, because it would force you to realize your losses and then go bust.
source: [@profstonge](https://twitter.com/profstonge/status/1634597797327405058)
[full vid](https://youtu.be/rtrTfuvtveM)
If you bought bonds a year ago, you’re getting screwed. If you’re buying bonds today, you’re getting a sweet deal.
It’s a double whammy for the banks… When interest rates rise it causes bond prices to fall, but it also causes as yields on bonds rise it creates the incentive for depositors to withdraw cash from their accounts and to start buying bonds (buying today is good) If more withdraws are occurring, then the banks are going to need liquidity, so they will need to liquidate their bond holdings at a loss.
Fuck dem jabronis
Insiders knew long before that this will happen:
https://twitter.com/unusual_whales/status/1634555021487480834
Then CEO tweeted “stay calm” days before the collapse.
https://youtu.be/-DT7bX-B1Mg
Found on net:
Billionaire investor Bill-Ackman says feds ‘screwed up’ handling of Silicon Valley Bank
collapse, warns they have ’48 hours to fix a soon-to-be-irreversible mistake’
You could have seen the banks problems for at least 2 weeks (because i have).
Imagine storing BILLIONS in that bank (as a customer/firm), taking home 6-7 figure paychecks and acting like that.
“Silicon Valley Bank profit squeeze in tech downturn attracts short sellers”
https://archive.vn/xMscB
>At the time, the bank piled much of its customer deposits into long-dated mortgage-backed securities issued by US government agencies, effectively locking away half of its assets for the next decade in safe investments that earn, by today’s standards, little income.
*Grabs popcorn
meanwhile I am grabbing some popcorn and petting my cat