Silicon Valley Bank Collapses - Cannot Blame Crypto!

in crypto •  2 years ago 

Banking regulators shutter SVB, collapse unnerves investors

March 10 (Reuters) - California banking regulators on Friday moved quickly to close startup-focused lender SVB Financial Group (SIVB.O), the largest bank failure since the financial crisis, a sudden collapse that prompted the global banking sector to shed billions in market value.

Explainer: What caused Silicon Valley Bank's failure?

Worth reading the cascade of misery. This isn't a "crypto bank", but its clients are similar hitech startups and hence risky assets.

This is also telling: Analysis: Declining U.S. bank reserves add wrinkle to contentious debt ceiling issue

The US Fed is allowing all this shit to happen. Low reserves, highly leveraged lending, low interest rates... this all explodes in your face when the Fed hikes rates.

The dumbest thing I saw was that SVB was still holding onto crappy treasuries that will lose value as rates increase - the only smart thing to do is to swap in and out of short-term treasury bills.

And this is an FDIC insured bank!

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE BLURT!
Sort Order:  
  ·  2 years ago  ·  

Not so fast! crypto angle:

Scrutiny Falls on $43B USDC Stablecoin’s Cash Reserves at Failed Silicon Valley Bank

yet another useless headline!

Circle’s USDC, the second-largest stablecoin, with $43 billion market capitalization, held an undisclosed part of its $9.8 billion cash reserves at failed Silicon Valley Bank.

oops!!

  ·  2 years ago  ·  

This really all stinks of a similar cascade of banking failures in the 1900s that led to the Fed Res Act.

I can't rem the name of one very good book - made the links showing the synthetic crash of provincial banks.
"13 Bankers" is a good book, but doesn't go into so much detail about 1900s.

Banksters are the primary causes of global grief and slavery. The great reset is nothing more than SpyFi replacing debt-coins.

  ·  2 years ago  ·  

As I've been saying - just with mathematics, not even the law is needed - this shitshow was designed by the Fed and other brethren agencies.

Growing Banking Crisis Caused by Contagion from Silicon Valley Bank Failure Going to Get Worse, Inevitable Due to Federal Reserve Policies

and this report

BANKING REPORT
January 17, 2023
Federal Reserve Policies and Systemic Instability:
Decoupling Asset Pricing from Underlying Risks

It's a banksters banquet - and you're not invited.

Jeez, if you hold gov bonds and the base interest rate rises then the price of those bonds crashes. So all those banks not paying attention and holding long-dated bonds are screwing themselves.

Indeed, one way of doing it is to keep cycling through the short-dated t-bills, so you min losses and keep buying the higher interest paper.

Where tf were these banksters' brains? Obviously not part of the cartel... or, just playing along with the planned collapse. I mean, if you can withdraw in time, the rest of the money belongs to other people. Who cares, right!?