Bank Failure!...and what it means to us...

I'm too weary to delve too deep into this; but the world knows the key points, by now:

Silicon Valley Bank failed on Friday. A lot of Woke small-business owners kept huge amounts of money in that one bank, which "reflected their values."

Hell of it is, it wasn't even really insolvent - just hadn't a hedge against short-term runs. Its money was tied into long-term investments, and couldn't be liquidated.

Vulture-capital firms using the bank, began panicking on Thursday, emptying the bank of liquid funds. So a run was started.

Meantime...First Republic Bank, which has a lot of Napa Valley winery business, is likewise seeing a weekend run.

And, in Me-Tooism, Signature Bank of NY, was shut down over the weekend (when it was closed, ferchrissakes) for reasons known only to regulators.

So. Just an hour ago, the Deep State, er, regulators, announced that SVB customers would ALL...be MADE WHOLE. Nobody loses nothing - except shareholders of the bank, who will be wiped out.

What this is, is another case of dealing with a problem by flooding it with money. CTRL+PRNT.

What THAT is going to do, is turn our four-alarm inflation conflagration, into Hell. EVERYTHING will be burnt to gases.

Now...THAT is going to be the excuse the Bidenistas use to launch Central Bank Digital Currency. Which is not currency - it's electronic scrip; it's a charge account at the Federal Reserve. Which can be infinitely controlled by algorithms - your money will be only good for allowed purchases, allowed territories, perhaps to expire in a certain time.

You become a slave to the Federal Reserve...to the government...to the Elites who run both.

We have just gotten a whole lot closer to Armageddon.

That's what I seem to understand, too.

Starting tomorrow, all FDIC accounts of $250,000 will be addressed . I understand they will also settle non insured amounts over the limit.

Would this have happened if there was Glass Steagall legislation in place...

billy the kid wrote:Would this have happened if there was Glass Steagall legislation in place...

Not sure.

I don't fully understand the mechanics of this bank's investment. Perhaps prohibiting house stock accounts, would have prevented some of the losses.

On the other hand, it's tough for even a well-run bank to endure a bank run. This was one of the original missions of the Federal Reserve - the bank of bankers; the backstop. Theoretically, when a bank run is launched, for whatever reason, the Fed is there to provide liquidity (in return for pledged collateral) until things return to normal.

There is no normal, now. The Fed is a conduit to launder money-printing, through buying Treasury bonds.

What this is, is a corrupt system of money-printing and debt, coming apart.

Several companies in NZ had moneys in this bank 2,3,4million from what I understand their deposits have been guaranteed

My betting is that Powell will cut rates next time...
In other words...its a shambolic mess......
What will Lowe do in Oz.....
Probably follow suit...
No more hikes....
If they dont....it proves that they dont know what theyre doing....
Sheer incompetence...one way or the other....

Lowe should be stood down and tarred and feathered and definitely NOT re-appointed.

Back in the day,...the Lehman collapse wasn't about Lehman, it was about the housing market and mortgage backed securities.  The Long Term Capital collapse wasn't about LTC but leverage and the extensive use of derivatives.  This has little to do with SVB, but rather the inability of the financial system to operate in anything other than a zero interest rate QE world.  This has been going on for 12 plus years now and all the risk models and Millennial bankers don't now how to function in any other environment....

I have never been very good at this stuff, but how do they commit money anew that is already committed? Isn't that like double jeopardy or something?

thats NOT the real story. what happened is Barons was extolling that bank as late as mid febuary. its a coverup as bad as enron was. all the rich people needed time to dump their shares.