To investors, Silicon Valley Bank’s failure on Friday afternoon left the business and finance industries scrambling in uncertainty. Would depositors get their money back? What would happen to the equity and bond holders? How would so many startups meet their payroll requirements in the coming week?
They say no bailouts, and now they say all will be made whole;
The problem is not the $250k FDIC insurance, the problem is 97% of SVB accounts had over $250K balance, so what in the hell we're they thinking?
I think they have had it so good for +30 years so many billionaires that they just assumed that the SVB was like the FED-RES bank, where you could just print to infinity
Some say $30B short, others say $300B short; Lots of the money on the books isn't there, as it was real-estate collateral now gone with high-tech layoffs and course up to a week ago, COVID MTG losses were off the books, & now they're on the books so real assets plummeted, which triggered the FDIC.
So the panic is all these stupid companys that kept un-insurance payroll, because checking-accounts were paying almost 3%, its the old canard like SBF on crypto, if its too good to be true, its probably not true; But hey this is SV, everybody is doing it,
Can they be made good? There are no assets to sell to raise cash the more Real Estate they sell more property in SV collapses, there only IOU's and with a bank-run the IOU is worthless;
The problem is FDIC can only care for the insured, they take care of the stupid then the entire racket collapses, some say that's what they want; CBDC -crypto's
This is really about woke management, last week Peter Thiel advised all to pull their money, which led to the bank run, Thiel a Trump 2024 election manager has every reason to bring down Biden's woke SV racket, funny thing is that Thiel however is also GAY, but conservative;
What we have learned is that there are no little $250k depositors in SVB, only big $100M which is insane when you consider they were notorious for loaning anybody with a breath money, which means most of their loans are non-collectible.
SV has had a hell of a party now +40 years of making BIllionaires and only hiring woke altruistic grifters, and now its all coming down;
Well Janet Yellen bail-out the richest and most spoiled area of USA? During a time where OHIO can't get help?? Even Ukraine $100 BIllion to date, but really $300 Billion to SV just to keep appearance of a woke san-fran is working? Keeping the SBF's of SV in their entitled lifestyle?
The problem is also there are SVB offices all over the world, including Israel; Almost all of the high-tech western world sucks the tit of this one bank the bank of the CIA, called inQtel;
Biden already has $30 trillion USD debt, now with SVB do we make it $32T? We all knew these bullshit uni-corns in SV were going to go bust, low interest money kept everyone alive, and now their cheap an easy money is gone.
Still not sure about Bitcoin only because I cant comprehend these crooked governments allowing it. The concepts make sense of course but these people are dirtbags and I don't see them saying "Hey Joe so glad your bitcoin went from 20K to 200K, good for you"
"This is the equivalent of you buying a house for $100, the house value falls to $70, and you go to the bank to take out a mortgage and demand they honor the original $100 value."
I think this line needs attention. Right now it makes no sense.
Another excellent post. One comment though, you misused the word pontificate. I think you may have meant ponder and contemplate. I don't believe you want us to express our opinions dogmatically on here. ;)
just a question ... Custodia ... business model? If they can not use your money (no fractional system), than you have to "pay" them for the custody service ... or do I miss something..?
I just wanted to thank you again for reading the audio yourself! I love the trillionaire energy 🏦🎉
Your commentary is consistent and unbiased which is rare and refreshing. When do you find time to sleep brother?
Build back better!
Bang bang ❗️
Wallets lock your account so your Bitcoin is just as risky.
Well I'm pretty sure he meant what I said. But whatever. DYOR 😂 have a good day and but BTC
THANK YOU SGT POMP 🫡
They say no bailouts, and now they say all will be made whole;
The problem is not the $250k FDIC insurance, the problem is 97% of SVB accounts had over $250K balance, so what in the hell we're they thinking?
I think they have had it so good for +30 years so many billionaires that they just assumed that the SVB was like the FED-RES bank, where you could just print to infinity
Some say $30B short, others say $300B short; Lots of the money on the books isn't there, as it was real-estate collateral now gone with high-tech layoffs and course up to a week ago, COVID MTG losses were off the books, & now they're on the books so real assets plummeted, which triggered the FDIC.
So the panic is all these stupid companys that kept un-insurance payroll, because checking-accounts were paying almost 3%, its the old canard like SBF on crypto, if its too good to be true, its probably not true; But hey this is SV, everybody is doing it,
Can they be made good? There are no assets to sell to raise cash the more Real Estate they sell more property in SV collapses, there only IOU's and with a bank-run the IOU is worthless;
The problem is FDIC can only care for the insured, they take care of the stupid then the entire racket collapses, some say that's what they want; CBDC -crypto's
This is really about woke management, last week Peter Thiel advised all to pull their money, which led to the bank run, Thiel a Trump 2024 election manager has every reason to bring down Biden's woke SV racket, funny thing is that Thiel however is also GAY, but conservative;
What we have learned is that there are no little $250k depositors in SVB, only big $100M which is insane when you consider they were notorious for loaning anybody with a breath money, which means most of their loans are non-collectible.
SV has had a hell of a party now +40 years of making BIllionaires and only hiring woke altruistic grifters, and now its all coming down;
Well Janet Yellen bail-out the richest and most spoiled area of USA? During a time where OHIO can't get help?? Even Ukraine $100 BIllion to date, but really $300 Billion to SV just to keep appearance of a woke san-fran is working? Keeping the SBF's of SV in their entitled lifestyle?
The problem is also there are SVB offices all over the world, including Israel; Almost all of the high-tech western world sucks the tit of this one bank the bank of the CIA, called inQtel;
Biden already has $30 trillion USD debt, now with SVB do we make it $32T? We all knew these bullshit uni-corns in SV were going to go bust, low interest money kept everyone alive, and now their cheap an easy money is gone.
What's a mother to do??
Still not sure about Bitcoin only because I cant comprehend these crooked governments allowing it. The concepts make sense of course but these people are dirtbags and I don't see them saying "Hey Joe so glad your bitcoin went from 20K to 200K, good for you"
"This is the equivalent of you buying a house for $100, the house value falls to $70, and you go to the bank to take out a mortgage and demand they honor the original $100 value."
I think this line needs attention. Right now it makes no sense.
Thanks Pomp - I am enjoying this analysis and think you are correct. Keep up the good work!
Another excellent post. One comment though, you misused the word pontificate. I think you may have meant ponder and contemplate. I don't believe you want us to express our opinions dogmatically on here. ;)
just a question ... Custodia ... business model? If they can not use your money (no fractional system), than you have to "pay" them for the custody service ... or do I miss something..?