Silicon Valley Bank (SVB) Collapses

[PWMDMD]

I've been telling everyone I know for years, all this fake fiat is worthless. If you can just print more with impunity indefinitely it's of no value. Turn it in to hard assets b/c it's all going away. All the macro economic evidence is there if you care to look. It's all unsustainable. This bank is just the first of many... mark my words.

The US dollar has a definite value and while the devaluation of the dollar is constant, so is the devaluation of all other currencies, and since many financial transactions in the US require investors to buy US dollars, it doesn't really matter what the absolute value of the US dollar is and all that matters is its value relative to the value of all of the other devalued currencies.

When interest rates rise in the US and foreign investors want in on that sweet US yield or they want to buy US treasuries, they have to sell their local currency and buy US dollars. Since the Federal funds rate basically sets the interest rates for the world and since inflation is basically highein nearly every other major market compared to the US, the US dollar is and will for the foreseeable future remain the currency of choice and thus not "worthless".

Inflation in other countries:
United Kingdom = 10.1%
Australia = 7.8%
Japan = 4.3%
Germany = 8.7%
France = 6.2%
India = 6.2%
China is a special case and has low inflation due to their tight CV-19 restrictions but their economy is struggling with a GDP of only 3% and a target of 5%. They are currently where we and the rest of the world were just after the CV-19 shutdown in mid to late 2020 when demand dropped off a cliff.

The US dollar is far from worthless and the world is stil very much dependent on it.

 

[LDB]

Insurance can cover much more than $250k. John and Mary Doe bank with Oak Bank. They have accounts John Doe ($250k), Mary Doe ($250k), John and Mary Doe ($250k), John Doe IRA ($250k), Mary Doe IRA ($250k) and potentially trust and other accounts. Just those specific accounts are insured for $1.25M though.

 

[NiwradND]

Insurance can cover much more than $250k. John and Mary Doe bank with Oak Bank. They have accounts John Doe ($250k), Mary Doe ($250k), John and Mary Doe ($250k), John Doe IRA ($250k), Mary Doe IRA ($250k) and potentially trust and other accounts. Just those specific accounts are insured for $1.25M though.

I was told 250K per person per bank.....Not 100 percent sure but I figured John 250K and Mary 250K.

 

[leadcounsel]

The US dollar is far from worthless and the world is stil very much dependent on it.

The US economic strength, and the global petro dollar, is on the verge of collapse. I'm sorry if some people cannot accept this. The worlds 8 billion people have grown tired of the 5% US controlling their lives, manipulating currency, seizing accounts, etc. It is what it is. I cannot fault them.

Research project.
Look at the BRICS nations are aligning (representing over 50% of the worlds' population). Look at what the national debt of China, Russia, etc. are compared to the US. Do some studying. I cannot spoon feed others. People get paid for that. Those sitting on mountains of cash or equivalents, like these bank accounts, might wake up to be insolvent or lost a lot of money. Bummer.

If you disagree, I care not.
If you are just learning of this, you are years behind the curve. A tidal wave is coming. Brace.

 

[leadcounsel]

If you think FDIC is going to protect you, over $250k, type is this: "Bank Bail Ins." Enjoy.

We get what we allowed.

 

[leadcounsel]

Good idea but I think it’s going to be used to scare people into digital currency. The government is here to protect you, just let them track your money for your own good.

100% agree. We will see a trial digital currency probably this year, with an eye to roll out across the economy within years to totally control, fix "all issues," and so many other concerns too lengthy to capture here. Anyone interested should do research.

This is a really bad problem, grand scheme, macro sense.

 

[LDB]

I was told 250K per person per bank.....Not 100 percent sure but I figured John 250K and Mary 250K.

$250k per person per account category. Single account is a category, joint account is a category, certain retirement accounts is a category plus a few others more iffy. But those I listed are definite and bring the total up.

https://www.fdic.gov/resources/deposit-insurance/brochures/documents/deposit-insurance-at-a-glance-english.pdf

 

[Pablo]

I’m surprised gold wasn’t up more today.

 

[PWMDMD]

The US economic strength, and the global petro dollar, is on the verge of collapse. I'm sorry if some people cannot accept this. The worlds 8 billion people have grown tired of the 5% US controlling their lives, manipulating currency, seizing accounts, etc. It is what it is. I cannot fault them.

Research project.
Look at the BRICS nations are aligning (representing over 50% of the worlds' population). Look at what the national debt of China, Russia, etc. are compared to the US. Do some studying. I cannot spoon feed others. People get paid for that. Those sitting on mountains of cash or equivalents, like these bank accounts, might wake up to be insolvent or lost a lot of money. Bummer.

If you disagree, I care not.
If you are just learning of this, you are years behind the curve. A tidal wave is coming. Brace.

I know about BRICS...and Japan was going to take over the world in the 1980s...and China was going to take over the world in the 2000s. It's been +20 years and BRICS has done nothing substantial. Much like Russia's totally over-estimated army, I think BRICS is over-estimated in much the same way. Looks like a threat on paper and should be formitable but in reality not much there. Should we take our eyes off them? Certainly not, but is the US dollar on the brink of collapse? Certainly not.

I've been reading about the immenent crash of the US dollar for +20 years now, every author claiming it was "immenent". It is still here and you are no different than the rest of these authors.

 

[PimTac]

This saga is just starting.

• Tech companies that held deposits at SVB are wondering when they’re going to be able to pay employees and their bills after the bank’s collapsed.

Companies scramble to meet payroll, pay bills after SVB's swift failure

Tech companies that banked at SVB are wondering when they're going to be able to pay employees and their bills after Friday's collapse.

www.cnbc.com

 

[PimTac]

Roku says 26% of its cash reserves are stuck in Silicon Valley Bank​

Roku says 26% of its cash reserves are stuck in Silicon Valley Bank

Around $487 million of Roku's cash reserves are stuck at Silicon Valley Bank, the streaming media company said Friday.

www.cnbc.com

 

[PWMDMD]

The US Treasury has auctions to sell treasuries that are purchased by individuals, investors, and countries. The goal of the Treasury is to fund US government operations. In exchange for money, the Treasury pays back the principal plus interest over a certain period of time. This is essentially just a contract. The fear is that China could "call its debt". The problem is contractually it can not call it all at once due to varying maturity dates. Our debt is also a very sound investment for China and calling the debt would be very painful for them too. Don't forget the Yuan is tied to the US dollar. Selling our debt also allows us to continue our own economic development further putting us ahead.

So what other countries own a significant amount of our debt?

Japan owns $1.2T or 4%
China owns $980B or 3.2%

The other countries that hold the most U.S. debt include the U.K., with $634 billion owed; Switzerland, holding $294.1 billion in debt securities; and the Cayman Islands, slightly behind Switzerland with $293.2 billion of the United States' debt.

Now it can't happen but say China could call all its debt at once...the US Treasury would have NO PROBLEM finding buyers for $980B of debt. The idea that "China owns" the US is hyperbole. We use that money for our own economic activity, China stills owns a relatively small % of our debt, and maturity dates on that debt matter.

 

[leadcounsel]

I've been reading about the immenent crash of the US dollar for +20 years now, every author claiming it was "immenent". It is still here and you are no different than the rest of these authors.

So, it's your opinion $32,000,000,000,000 in national debt, $180 trillion in unfunded liabilities, and a negative 25% debt to GDP is healthy.

It's my highly educated professional opinion to disagree.

 

[PWMDMD]

So, it's your opinion $32,000,000,000,000 in national debt, $180 trillion in unfunded liabilities, and a negative 25% debt to GDP is healthy.

It's my highly educated professional opinion to disagree.

No, but it's not as dire as some believe, and even though it's not good it still doesn't result in us being on the brink of collapse. BTW...I heard the same thing growing up watching the national debt counter in Times Square which according to everyone back then we should've already collapsed a decade ago. Here we are...

We have a spending problem...that's for sure...but this is still correctable. Whether we do it or not...well, I'm no psychic but neither are you. As long as the debt payments are serviceable we are ok.

 

[The Critic]

Sums up the situation pretty well:

“
One venture capitalist said it was as if someone screamed “fire in a crowded theater where there is no fire.”

“And then when everyone rushes to the door, they knock over the oil lamp and there is a fire and it burns down the building,” the venture capitalist said. “And then that same person [is] standing outside being like, ‘See, I told you so.’””

Silicon Valley investors and founders express shock over SVB's collapse, describe struggles to get money out

As Silicon Valley Bank was taken over by the FDIC on Friday, investors and start-ups with money there struggled to make sense of the situation.

www.cnbc.com

IMO this really did not have to happen. Sad situation for a lot of folks.

 

[leadcounsel]

One venture capitalist said it was as if someone screamed “fire in a crowded theater where there is no fire.”

“And then when everyone rushes to the door, they knock over the oil lamp and there is a fire and it burns down the building,” the venture capitalist said. “And then that same person [is] standing outside being like, ‘See, I told you so.’””

LOL.

I have economics undergrad coursework and an MBA. I'm also a combat veteran and lawyer. I say this with a high degree of professional, academic, and personal knowledge.

$32,000,000,000,000 national debt.
$175,000,000,000,000 unfunded liabilities.
NEGATIVE GDP by 25% year over year.
Trillions in consumer debt, Trillions in student loan debt, 50 million living in poverty, etc. etc. etc. We, literally, have no ability to pay the money due, we make nothing, we have an entertainment and service economy (pushing papers between banks), we don't have the assets or abilities to pay, and are ramping up interest rates to fight our own collapsing economic inflation at staggering levels. Is there another nation with even close to our debt? I doubt it. The era of 0% interest and easy money is over. Banks are going to collapse, and much along with it. Our economy is going to collapse. All the indications are there. Mark it. We barely survived in 2001, then in 2008... we printed and borrowed our way out of those crises when we had only $1T and $8T debts. Now we have $32T debt.... do the math. From border issues and drugs, we have more problems than we could hope to solve if we had a functional government, which we don't.

If someone thinks there's not a fire, that person is living in delusion. The FED has tripled interest rates to stop inflation with no end in sight. We make nothing, we borrow and print everything. Every societal metric is bad. If you disagree, name a positive metric and I'm all ears. We have a three front global war looming, that we cannot afford economically and based on prior performance of 0-5 cannot win militarily. It's all collapsing, and there is literally not a single strong economic metric in this nation. The house of cards is imminently collapsing. All the metrics are there. Mark it.

If this hurts your feelings, do some soul searching. Decades of completely irresponsible leadership have steered us into the gates of collapse as a superpower. Sorry to be the bearer of bad news if you haven't opened a newspaper in decades. I say this, sadly, as a patriotic combat veteran. It stinks. But this is the penalty of fraud, corruption, and bad leadership decade upon decade. It appears, time to pay the piper is upon us.

 

[Bjornviken]

Watch out for bail-in

 

[bbhero]

Get ready for digital currency…

And…..

That equals exceptionally bad, bad results….

Guarantee on that.

 

[bbhero]

LOL.

I have economics undergrad coursework and an MBA. I'm also a combat veteran and lawyer. I say this with a high degree of professional, academic, and personal knowledge.

$32,000,000,000,000 national debt.
$175,000,000,000,000 unfunded liabilities.
NEGATIVE GDP by 25% year over year.
Trillions in consumer debt, Trillions in student loan debt, 50 million living in poverty, etc. etc. etc. We, literally, have no ability to pay the money due, we make nothing, we have an entertainment and service economy (pushing papers between banks), we don't have the assets or abilities to pay, and are ramping up interest rates to fight our own collapsing economic inflation at staggering levels. Is there another nation with even close to our debt? I doubt it. The era of 0% interest and easy money is over. Banks are going to collapse, and much along with it. Our economy is going to collapse. All the indications are there. Mark it. We barely survived in 2001, then in 2008... we printed and borrowed our way out of those crises when we had only $1T and $8T debts. Now we have $32T debt.... do the math. From border issues and drugs, we have more problems than we could hope to solve if we had a functional government, which we don't.

If someone thinks there's not a fire, that person is living in delusion. The FED has tripled interest rates to stop inflation with no end in sight. We make nothing, we borrow and print everything. Every societal metric is bad. If you disagree, name a positive metric and I'm all ears. We have a three front global war looming, that we cannot afford economically and based on prior performance of 0-5 cannot win militarily. It's all collapsing, and there is literally not a single strong economic metric in this nation. The house of cards is imminently collapsing. All the metrics are there. Mark it.

If this hurts your feelings, do some soul searching. Decades of completely irresponsible leadership have steered us into the gates of collapse as a superpower. Sorry to be the bearer of bad news if you haven't opened a newspaper in decades. I say this, sadly, as a patriotic combat veteran. It stinks. But this is the penalty of fraud, corruption, and bad leadership decade upon decade. It appears, time to pay the piper is upon us.

I agree with you 1000 percent.

I will add one thing…

This collapse is being driven to happen…. On purpose….

 

[bbhero]

Good idea but I think it’s going to be used to scare people into digital currency. The government is here to protect you, just let them track your money for your own good.

It’s not just going to be used for tracking…

No… these individuals will utilize it to take away certain peoples ability to use money.
That’s where this is meant to go. And planned to go.

This is a extraordinarily dangerous path to go down.