Posted on 03/11/2023 9:45:22 AM PST by SeekAndFind
Yesterday, along with many, many others, I mentioned a major financial concern:
The problems of two small banks on the West Coast are rippling across markets and causing new investor concerns about some of the country’s largest financial institutions.
Why? Three words: rising interest rates [italics added].
The Federal Reserve’s aggressive campaign to bring down inflation helped set the stage for major problems at two California lending institutions — SVB Financial (SIVB) and Silvergate Capital (SI) — as an outflow of deposits forced both to sell assets at a loss. Those assets were bonds.
BOOM! BOOM! POW! Friday it happened: Silicon Valley Bank (SVB), the U.S.'s 16th largest according to the Federal Reserve, collapsed — the second largest failure in U.S. banking history.
Silicon Valley is not a real geographical valley, but the area in northern California that is home to many high-tech, low-tech, middle-tech companies ranging from start-ups to established companies, many financed by SVB.
And many companies parked their money in SVB for such business basics as making payroll. And then they couldn't because the bank had their money. Warned, many of the companies had attempted to withdraw their funds. Some succeeded; others didn't.
Because of its narrow niche — financing technology companies — SVB's problems are unique. Other financial institutions are not quite as vulnerable. Hopefully.
As I advised yesterday, stay tuned.
(Excerpt) Read more at americanthinker.com ...
I will just be happy if the Duchess of Suck-It lost all or Harry’s money in SVB as is being reported.
What? Wow!
The upside though is that those getting jobbed are mostly democrats.
Yes that’s a pretty graph. It’s always nice when people decorate threads with graphs and people who see it can play the game of “What does this graph signify?” It would be nice if you would explain a little about why you think this graph should fill my screen as I scroll through the comments.
“What does this graph signify?”
Share price change percentage.
Second chart.
> Yes that’s a pretty graph.
Nothing to worry about. Just flip it upside down.
I miss the Golden Years of the Carter administration.
A bank in one local area with only very limited public market profile. It is known for high risk investmrnt deals.
Maybe such entities should not be entrusted with public depositors funds.
Let’s go back to the former jaws and have a great walk
If separation (as it was called) veteran investment firms and regular banking that takes normal public savings and checking accounts.
Why should the public be placed at this unnecessary risk! Why should we the taxpayers be placed at risk ?
Charles Schwab lost 25% of its value yesterday.
How much TANGIBLE value was lost?
Most Billionaire are “Paper” billionaires.
Bill Gates is the only rich, famous guy, that buys land
albeit so he can take out of productive uses.
Stock price is very subjective.
Land can objectively produce wealth.
Dems may bring down the Country.....
I saw some posts about Harry & Megan lost millions and Oprah lost $590 million. Do not have any other details.
Go Woke Go Broke!
the second largest failure in U.S. banking history.A bank that most people, me included, never heard of.
bkmk
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