Silicon Valley Bank collapse

[Chuckles 2,541]

I've been following the news about SVB since the weekend. It seems like the Fed has stepped up after Biden's statement that "all deposits are safe" so it didn't fully collapsed. This brings me flashbacks to the 2008 housing crisis, albeit without all its closed door secrecy. Are we going to see a recession soon?

https://www.ft.com/content/56a8df6b-3466-4524-9f02-16bc3276c580

I found "material weaknesses" quite cryptic... from Credit Suisse:

I'm wondering why our good sis @Economy hasn't posted about it,  he's always on top of these news and keeping us fed! Hope you're doing well 

 

[Illuminati 14,600]

Afaik the important part was that the bank did have enough assets to cover everyone's deposits it's just that a lot of their money was invested and not readily available. So the bailout isn't as big as it sounds

[bionic 30,839]

1 hour ago, Illuminati said:

Afaik the important part was that the bank did have enough assets to cover everyone's deposits it's just that a lot of their money was invested and not readily available. So the bailout isn't as big as it sounds

how big in terms of $

[myluis617 4,796]

I saw the title of the thread and immediately thought economy posted this. 😅

[high culture 1,253]

Would love to see financial systems collapse and the government just decide it isn't going to collapse with numbers on the computer.. the world needs to wake up that the economy is just a social construct

[phantasmas 5,089]

funny how quickly the gov't stepped  in

priorities..... 

[PunkTheFunk 118,876]

Coming for @Economy's gig

[Economy 42,056]

1 hour ago, high culture said:

Would love to see financial systems collapse and the government just decide it isn't going to collapse with numbers on the computer.. the world needs to wake up that the economy is just a social construct

That would never be possible cuz every single moving part and every person would have to be in on that simultaneously at once 

[Economy 42,056]

31 minutes ago, PunkTheFunk said:

Coming for @Economy's gig

I'm surprised it took this long to get reported on world news lol. I was gonna make a thread on it and forgot

[Anveeroy 56,290]

1 hour ago, phantasmas said:

funny how quickly the gov't stepped  in

priorities..... 

Then what should have gov done? 

[Economy 42,056]

1 hour ago, phantasmas said:

funny how quickly the gov't stepped  in

priorities..... 

 

9 minutes ago, Anveeroy said:

Then what should have gov done? 

Biden made it clear they were protecting and guaranteeing deposits only not investors (although indirectly it ended up calming investor nerves too)

 

I think it's a perfectly reasonable stance

 

If the bank u had money in (assuming you had any savings) u might support the bank deposits being saved as well

[phantasmas 5,089]

1 hour ago, Anveeroy said:

Then what should have gov done? 

im not mad they stepped in.

im upset that they dont step in for other serious issues just as quickly.

[Economy 42,056]

2 minutes ago, phantasmas said:

im not mad they stepped in.

im upset that they dont step in for other serious issues just as quickly.

Fair.

 

But I think some of the other issues ppl want action on are more complex than a quick bailout. Subject to more government blocking from opposition, debates over how to go about it, logistics etc

 

This requires a few signatures basically to say ull back deposits. Fixing something like healthcare on the other hand is infinitely more complex