Silicon Valley Bank Shares Halted After Plunge Deepens UPDATE: The Silicon Valley Bank has been shut down by regulators

[PatMiles]

Silicon Valley Bank Shares Halted After Plunge Deepens

The bank is reportedly looking to sell itself to a larger financial institution. | Economy

www.breitbart.com

UPDATE: The Silicon Valley Bank has been shut down by regulators and the Federal Deposit Insurance Corporation will protect insured deposits.


CNBC reports:

Silicon Valley Bank has been closed by regulators, which have taken control of the bank’s deposits, the Federal Deposit Insurance Corporation announced Friday.
The California Department of Financial protection and Innovation closed SVB, and named the Federal Deoposit Insurace Corporation as the receiver.

The FDIC released this statement:

Silicon Valley Bank, Santa Clara, California, was closed today by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect insured depositors, the FDIC created the Deposit Insurance National Bank of Santa Clara (DINB). At the time of closing, the FDIC as receiver immediately transferred to the DINB all insured deposits of Silicon Valley Bank.
All insured depositors will have full access to their insured deposits no later than Monday morning, March 13, 2023. The FDIC will pay uninsured depositors an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds. As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to uninsured depositors.
Silicon Valley Bank had 17 branches in California and Massachusetts. The main office and all branches of Silicon Valley Bank will reopen on Monday, March 13, 2023. The DINB will maintain Silicon Valley Bank’s normal business hours. Banking activities will resume no later than Monday, March 13, including on-line banking and other services. Silicon Valley Bank’s official checks will continue to clear. Under the Federal Deposit Insurance Act, the FDIC may create a DINB to ensure that customers have continued access to their insured funds.
As of December 31, 2022, Silicon Valley Bank had approximately $209.0 billion in total assets and about $175.4 billion in total deposits. At the time of closing, the amount of deposits in excess of the insurance limits was undetermined. The amount of uninsured deposits will be determined once the FDIC obtains additional information from the bank and customers.
Customers with accounts in excess of $250,000 should contact the FDIC toll-free at 1-866-799-0959.
The FDIC as receiver will retain all the assets from Silicon Valley Bank for later disposition. Loan customers should continue to make their payments as usual.
Silicon Valley Bank is the first FDIC-insured institution to fail this year. The last FDIC-insured institution to close was Almena State Bank, Almena, Kansas, on October 23, 2020.

Read Breitbart News’ original report below:


Trading in shares of the holding company of Silicon Valley Bank was halted for pending news on Friday after premarket price indicators plunged by 63 percent.


SVB Financial Group said on Wednesday that it was issuing $2.25 billion of shares to bolster its capital position after a significant loss in its investment portfolio. Prominent venture capitalists, reportedly including Peter Thiel, have reportedly told portfolio companies to withdraw funds from the bank.

CNBC reported that the attempted capital raise has failed. Instead, the bank is now looking to sell itself, according to CNBC’s David Faber.

The bank said on Wednesday that it would book a $1.8 billion after-tax loss on sales of investments, sparking panic that has led some depositors to withdraw funds.

Rising rates hurt the value of bond portfolios held by banks. What’s more, customers are lured out of bank deposits seeking higher-yields in safe assets such as short-term Treasuries.

Pershing Square CEO Bill Ackman compared the collapse of SVB to Bear Stearns in a tweet on Friday, indicating that the government may need to step in to make sure depositors were safe in order to stem a broader bank run.

The gov’t could also guarantee deposits in exchange for a dilutive warrant issuance and other covenants and protections. If @SVB_Financial is indeed solvent, this would buy time to enable SVB to restore the franchise and raise new private capital.

THE SHIT IS STARTING TO GET REAL!!

 

[alamo5000]

From another source:

"SVB suffered from the rise in interest rates from the Federal Reserve because it hurt the value of its investment assets, especially bonds. As a result, the bank had to resort to a capital raise as many startups withdrew their deposits from the bank since they were burning a lot of cash.

SVB had to sell bonds, primarily U.S. Treasury securities, at a discount to cover these withdrawals. The rise in interest rates has made existing bonds less valuable. In selling these bond positions, SVB had to take a significant loss."

While I don't have any inside information, this to me looks like bad management more than anything.

 

[stemikel]

Wondering how contagious this is going to be.

 

[eddie102870]

me too

 

[JLP83]

Coincidence or related?

Missing a direct deposit in your Wells Fargo account? Here's what we know.

Some Wells Fargo customers posted online that their direct deposits and scheduled paychecks were missing from their online banking accounts Friday.

www.wfaa.com

 

[Short-bus]

There were 3 other bank stocks who's stocks were halted in trading this morning. Silvergate Capital, Signature Bank, and First Republic Bank.

Branden

 

[Clob McStrunk]

Cliffs Notes?

 

[Short-bus]

Cliffs Notes?

Bank announced they were taking a big loss on bonds that they're having to sell to raise capital because another firm said SVD was bad, so customers started to withdraw their money from it to move to other banks. SVD said they were selling more assets in order to get funds to cover the withdrawals, and the customers really didn't like that. Stock dropped 60%, then another 60% this morning before trading was halted, and the FDIC stepped in and shut their doors.

Branden

 

[Short-bus]

Oh yeah, and I forgot one small detail, It's probly Trumps fault.

Branden

 

[HeavyAssault]

I'm preeeety sure you are supposed to buy low, sell high. It's not supposed to be an estate sale.

 

[Bigfatcock]

Cliffs Notes?

Weekly chart

 

[E. Bryant]

Wondering how contagious this is going to be.

Depends upon how many institutions hold long-dates securities (specifically Treasuries and MBS) that were purchased during ZIRP. Pretty sure the answer to this is "most, if not all".

Now ponder the fact that the Federal Reserve holds about $9 trillion in assets that fit this description.

 

[Lightning8]

Depends upon how many institutions hold long-dates securities (specifically Treasuries and MBS) that were purchased during ZIRP. Pretty sure the answer to this is "most, if not all".

Now ponder the fact that the Federal Reserve holds about $9 trillion in assets that fit this description.

I wonder how that $9 trillion influences the FED - that must bias their decisions.

 

[Franko]

Looking forward to being told by Wall Street and the Government that we need to bail out banks to save America again...

 

[stemikel]

I did not realize that this was the 18th biggest bank in the US and the second largest bank failure in U.S. history.

 

[BCP]

Depends upon how many institutions hold long-dates securities (specifically Treasuries and MBS) that were purchased during ZIRP. Pretty sure the answer to this is "most, if not all".

Now ponder the fact that the Federal Reserve holds about $9 trillion in assets that fit this description.

They'll just throw a tantrum and fire up the money printer.

 

[nikonNUT]

Of Silicon Valley Bank...
"The bank had about $209 billion in total assets and about $175.4 billion in total deposits at the end of last year, the FDIC said Friday."

 

[Cardboard55]

Management was doing great the last few years, at least for themselves

Silicon Valley Bank CEO Greg Becker cashed out $2 million just before the collapse

The chief executive of Silicon Valley Bank cashed out stock and options for a $2.27 million net gain in the weeks before Friday's collapse, public filings show.

www.marketwatch.com

Daniel Beck Net Worth (2023) – wallmine.com

Daniel has made over <b>11 trades</b> of the SVB stock since 2020, according to the Form 4 filled with the SEC. Most recently he sold <b>2,000 units of SIVB stock worth $575,180 on 27 February 2023</b>.

wallmine.com

Fmr. Silicon Valley Bank VP Convicted Of Insider Trading Charged With Forging Sentencing References

A former Silicon Valley bank vice-president convicted of insider trading and securities scam is facing new criminal charges for tampering, identity theft and criminal contempt after allegedly forging several character references to get a lighter sentence.

www.cbsnews.com

Cramer, as usual, was wrong:

Jim Cramer Urges Investors to Buy Silicon Valley Bank Stock One Month Before Regulators Shut it Down (VIDEO) - News Fall Out

Jim Cramer Urges Investors to Buy Silicon Valley Bank Stock One Month Before Regulators Shut it Down (VIDEO) CNBC's Jim Cramer urged investors to buy Silicon Valley Bank stock $SIVB last month, saying it was "cheap" and has "room to run" – SVB on Friday was shut

newsfallout.com

Anytime Cramer pumps something, you know he's doing it for insiders so they can get out.

 

[Spock]

The thing with investments banks hold as assets that aren’t loans they can only hold very risk free such as t bills bonds certain triple a MBS etc. losses an the face value are already factored into income (gain or loss)as a mark to market adjustment each quarter so looking at the quarterly reports of income should already factor in these paper losses. Investments continue to provide cash flow and if held to maturity no gain or loss is realized. These investments are held as on balance sheet liquidity. As deposits rapidly pull out these may need to be liquidated to provide said liquidity. For banks deposits are the liability and loans and investments are the assets so as deposits leave they must be covered by sale of investments or loans or raise additional capital. Once a deposit run starts it’s a bad deal. SVB was a bank used by hedge funds to help facilitate investment in high tech start ups so it was a very volitile market. They were darlings before tech started it downward slide and the hedge funds advised all there clients to pull there money out cause they didn’t want to take the loses themselves.

 

[NCHillbilly]

Don't worry, I'm sure the top officers and largest investors will come out ok. It's the little guys that'll take it in the ass, as usual.

 

[Emerson0311]

Well, looks like it has begun. Can “they” put a cork in it for a while yet??? We will see. I am not confident the “great reset crew” can properly coordinate the planned meltdown to occur when they are ready for it.

 

[BCP]

Anytime Cramer pumps something, you know he's doing it for insiders so they can get out.

I'm not a fan of him either.

What Spock says above makes sense, it had to be massive investment groups pulling money out.

 

[Spock]

Silver gate was a facilitator for Crypto deposits with FTX being one of there largest competitors. Most smaller community banks are well capitalized and low loan to deposit ratios. It’s the mark to market hits to income that are hitting there bottom lines but again to real losses unless they actually have to sell the investment.

 

[Cardboard55]

Next domino

Fears Silicon Valley Bank collapse could hit First Republic Bank

First Republic Bank, the the 16th largest in the US, saw its shares plummet 50 percent on Friday. The concern was due to the collapse of similarly-positioned Silicon Valley Bank.

www.dailymail.co.uk

Insider summary at bottom:

Michael Roffler Net Worth (2024) – wallmine.com

Michael J. Roffler serves as Executive Vice President and Chief Financial Officer of the Company. Mr. Roffler joined First Republic in 2009 as Deputy Chief F...

wallmine.com

List of Top 50 Banks in the United States

www.advratings.com

If this goes as usual, the collapse will continue until the top 5 are threatened, then the bailout will arrive, and everyone from Goldman on up will buy the smaller fish for pennies on the dollar.

Why Goldman? The revolving door and campaign contributions from G-S are massive.

Goldman Sachs Profile: Summary

Goldman Sachs organization profile. Contributions in the 2022 cycle: $3,351,512. Lobbying in 2021: $2,360,000. Outside Spending in the 2022 cycle: $0.

www.opensecrets.org

Donor Lookup

www.opensecrets.org

The revolving door always spins for Goldman Sachs — by design

For many, the ties between investment bank Goldman Sachs and the government (particularly the Trump Administration) is very worrisome.

www.opensecrets.org

Of course that was 2017, in 2020, G-S joined the Biden Team:

Goldman Sachs vets quietly added to Biden transition

www.politico.com

 

[NoDopes]

Most smaller community banks are well capitalized and low loan to deposit ratios.

Are you sure?

In March 2020 the FED dropped reserve requirements for bank deposits to zero. $0!

 

[Spock]

Are you sure?

In March 2020 the FED dropped reserve requirements for bank deposits to zero. $0!

Actually capital minimums were increased for the mega banks and still at historical norms for smaller banks. Loan to deposit is at historical lows for community banks due to the massive influx of cash because of Covid relief. This is slowly going up as inflation is eating into the cash stock piles. These banks above are way outside the norm business model and where inherently much higher risk profiles. Grew incredibly fast thinking they were smarter than the rest of us. Capital and liquidity are what keep banks solvent and able to weather storms in the economy. Usually it is credit issues that lead to failure. These banks thought these deposits were everything and because of the massive amounts of liabilities they thought they had a safe bet in the investment portfolio and but because mark to market (paper losses only) the investment community advised their clients to move their deposits and not then having a market for a capital raise, dooming SVP. Bad management and a completely niche bank strategy not a good long term business strategy. Any banker with a brain saw the danger with Silvergates strategy. Crypto is a virtual house of cards with players like FTX the norm. Community banks have a good local loyal deposit base and try to make solid loans in their local communities where they intimately know the local conditions. The thing that scares me is due to the regulatory costs more and more small banks get gobbled up by large institutions leaving small communities with fewer and fewer options. Small banks under $250-500MM literally can’t keep the doors open with the cost of CFPB compliance. I’ve been through few banking downswings and the only ones that benefit are the too big too fail banks that just get bigger. SVP will be gobbled up out of receivership by one of them. Although JP Morgan did get the shaft when they bailed out Bear Sterns so this one might get a bit more interesting. Even during the 2008 crash remaking depositors of the closed banks were made while they just need to wait until it comes out of receivership. Other than the all banks getting lumped together as happens in these kind of situations as a traditional banker I would say these banks were kinda asking for it with their business models.

 

[Short-bus]

Looking forward to being told by Wall Street and the Government that we need to bail out banks to save America again...

After the 2008 crash, lawmakers passed a bill that would prohibit US taxpayer money from being used to bail out banks in the future. Odds are the next bank will do a bail-in if FDIC is unable to find a buyer for the remaining assets. FDIC apparently only has enough capital to cover roughly 4% of all insured deposits in the US (about $800B). So a bank here or there goes down, and they can manage it, liquidate it, and only have a fraction of the insured deposits actually have to be covered in the end. If SVB going down causes another decent sized bank or 2 to go down soon, then it could get dicey. Check out the bail-in's in Cyprus, where they took 56% of all the deposits over the insured 150K euros, and 6% of insured deposits (balances under 150k euros)...from EVERYONE in order to save the bank from a complete, and total collapse. What they did on the deposits they took, was they issued new bank stock (worthless stock in a failing bank) in the amount they took. When they reopened trading on those stocks, the price got pushed down to .25 cents a share from folks trying to liquidate that stock and recover their cash. It stayed around 25 to 40 cents for a few years until it was withdrawn from the markets, and a few days later, new stock was issued that was priced at over $100/share. I didn't spend a ton of time looking into it, I can only assume they were bought, but who knows.

What i'm saying, is the US govt will no longer be in the business of bailing out private banks, there isn't too big to fail anymore....well at least until they quickly repeal that law in order to bail out private industry again.

Branden

 

[Franko]

After the 2008 crash, lawmakers passed a bill that would prohibit US taxpayer money from being used to bail out banks in the future. Odds are the next bank will do a bail-in if FDIC is unable to find a buyer for the remaining assets. FDIC apparently only has enough capital to cover roughly 4% of all insured deposits in the US (about $800B). So a bank here or there goes down, and they can manage it, liquidate it, and only have a fraction of the insured deposits actually have to be covered in the end. If SVB going down causes another decent sized bank or 2 to go down soon, then it could get dicey. Check out the bail-in's in Cyprus, where they took 56% of all the deposits over the insured 150K euros, and 6% of insured deposits (balances under 150k euros)...from EVERYONE in order to save the bank from a complete, and total collapse. What they did on the deposits they took, was they issued new bank stock (worthless stock in a failing bank) in the amount they took. When they reopened trading on those stocks, the price got pushed down to .25 cents a share from folks trying to liquidate that stock and recover their cash. It stayed around 25 to 40 cents for a few years until it was withdrawn from the markets, and a few days later, new stock was issued that was priced at over $100/share. I didn't spend a ton of time looking into it, I can only assume they were bought, but who knows.

What i'm saying, is the US govt will no longer be in the business of bailing out private banks, there isn't too big to fail anymore....well at least until they quickly repeal that law in order to bail out private industry again.

Branden

The law prohibiting bailouts was passed but my belief is that that law will be repealed or just plain ignored when the time comes. Imagine what will happen when the bankers and government regulators have to go on TV and tell millions of regular Americans that their life savings are being stolen to fix the mistakes made by greedy bankers, inept regulators, and corrupt politicians. Things could go off the rails real fast.

 

[Short-bus]

The law prohibiting bailouts was passed but my belief is that that law will be repealed or just plain ignored when the time comes. Imagine what will happen when the bankers and government regulators have to go on TV and tell millions of regular Americans that their life savings are being stolen to fix the mistakes made by greedy bankers, inept regulators, and corrupt politicians. Things could go off the rails real fast.

The government is likely to back the FDIC however it has to in order to ensure that FDIC itself doesn't fail to cover the insured deposits. If the .gov is going to fuck us, remember they have the media in their pockets right now, they can sell it however they want. They will blame china, or russia, or something else of causing all the problems that we know about. They will then sell our childrens children further down the road because they know they aren't going to be around to personally deal with the fallout of fucking them over. Whatever they do, we will be told a story about how it's someone elses fault, and not our bankers, investors, and certainly not the governments fault. They're already starting to bring up UFO stories again, which means look over here, not over there. They have something big planned when big stories come up to distract us. The china balloon was a big distraction.

Branden

 

[E. Bryant]

It may be educational to re-watch GW Bush's speech on the 2008 Global Financial Crisis from September of that year:



This ride will be different, but many of the same lessons will be reinforced.

 

[atepointer]

From another source:

"SVB suffered from the rise in interest rates from the Federal Reserve because it hurt the value of its investment assets, especially bonds. As a result, the bank had to resort to a capital raise as many startups withdrew their deposits from the bank since they were burning a lot of cash.

SVB had to sell bonds, primarily U.S. Treasury securities, at a discount to cover these withdrawals. The rise in interest rates has made existing bonds less valuable. In selling these bond positions, SVB had to take a significant loss."

While I don't have any inside information, this to me looks like bad management more than anything.

Hugely. No risk officer and no hedges in place. None. This is basic risk management 101 in a rising rate environment. Someone will own SIVB by Monday morning. What's amazing is the assets v liabilites on long term unrealized was made available on Feb 24's 10k from SIVB, but it wasn't until 2 VC firms yelled fire last week that the wheels of withdraw madness ensued.

 

[Cardboard55]

CEO of Silicon Valley Bank lobbied Congress to avoid scrutiny

Greg Becker in 2015 asked Congress reduce the oversight of banks of his size. He won the argument three days later. On Friday the bank where he was president, SVB, collapsed.

www.dailymail.co.uk

 

[BCP]

The law prohibiting bailouts was passed but my belief is that that law will be repealed or just plain ignored when the time comes. Imagine what will happen when the bankers and government regulators have to go on TV and tell millions of regular Americans that their life savings are being stolen to fix the mistakes made by greedy bankers, inept regulators, and corrupt politicians. Things could go off the rails real fast.

They've already fucked us several times over the past 20 years, most recently with massive inflation and gas prices, yet people voted them back in for the most part. Even if say 10% of the vote was fraudulent that still means 40% of voters are fine with expensive gas, sky high rents, wars overseas.

 

[Franko]

Hugely. No risk officer and no hedges in place. None. This is basic risk management 101 in a rising rate environment. Someone will own SIVB by Monday morning. What's amazing is the assets v liabilites on long term unrealized was made available on Feb 24's 10k from SIVB, but it wasn't until 2 VC firms yelled fire last week that the wheels of withdraw madness ensued.

I didn't really dive into the details but just wanted to confirm; they didn't have a risk officer? This is a huge commercial bank, how on earth did regulators and their business partners allow this? I consult for a large insurance brokerage and have outside auditors crawling up my ass about once a month and we are not even a risk bearing entity...

 

[7.62willdo]

The law prohibiting bailouts was passed but my belief is that that law will be repealed or just plain ignored when the time comes. Imagine what will happen when the bankers and government regulators have to go on TV and tell millions of regular Americans that their life savings are being stolen to fix the mistakes made by greedy bankers, inept regulators, and corrupt politicians. Things could go off the rails real fast.

if they pay no attention to the constitution what makes you think they will care about a meaningless law?

 

[Franko]

if they pay no attention to the constitution what makes you think they will care about a meaningless law?

Because I continue to hope that our institutions aren't entirely rotted to the core. I'm not yet willing to throw in the towel and join all the other shitstains in trying to destroy this country for my own benefit.

 

[PatMiles]

that still means 40% of voters are fine with expensive gas, sky high rents, wars overseas.

I don't think that 40% is fine with expensive gas, sky high rents and war overseas. I think they are just too stupid to realize that is being purposely foisted on them. We have raised two consecutive generations of idiots!
The latest generation is so focused on racism, the LGBTXYZ movement and every other movement that is foisted on them that they don't see what kind of country they will be living in when they get older and then, of course, they will blame it on somebody else. They will still be living hand to mouth, 12 people in a run down apartment with 15 kids screaming and yelling. They will teach those kids that all of the woes of the world are the "mans" doing just like the hippies of the 60's did. With every new generation this country is going to devolve more and more.
The worst is yet to come.

 

[atepointer]

I didn't really dive into the details but just wanted to confirm; they didn't have a risk officer? This is a huge commercial bank, how on earth did regulators and their business partners allow this? I consult for a large insurance brokerage and have outside auditors crawling up my ass about once a month and we are not even a risk bearing entity...

Their RO voluntarily stepped down last April and by the time the shit hit the fan on the last 10k the liabilities with respect to the long term unrealized losses on Treasuries acquired at much higher prices were nearly equal to the assets. I believe they appointed someone earlier this year, but regardless to have that much time with no one monitoring....insane.

Once Peter Thiel and a few others put out the smoke alarm they had to start selling them at horrible losses....and you know the rest of the story. I have a feeling that lady saw the storm brewing. No idea how any bank is allowed to have a vacuum in that capacity for even a day.

As far as regulators go I do not believe SIVB has ever been subjected to any regulator stress tests I think that was for the top 25 largest. I believe I read sometime on the last go around it was 33 banks?

Copy of 10k

https://d18rn0p25nwr6d.cloudfront.net/CIK-0000719739/e0b8bb11-3b21-4348-826f-7370b93d5b5c.html

 

[Franko]

Their RO voluntarily stepped down last April and by the time the shit hit the fan on the last 10k the liabilities with respect to the long term unrealized losses on Treasuries acquired at much higher prices were nearly equal to the assets. Once Peter Thiel and a few others put out the smoke alarm they had to start selling them at horrible losses....and you know the rest of the story. I have a feeling that lady saw the storm brewing. No idea how any bank is allowed to have a vacuum in that capacity for even a day.

This looks like confirmation that the entire C-suite knew what was coming and didn't appoint a new RO to buy time to cash out and delay in the hopes that something might happen to cause the Fed to cut rates and save the company.

The lack of a new RO or an interim RO should have triggered all kinds of audits. My guess is the financial press and regulators are already preparing their "nobody could have seen this coming" speeches to save face. The whole incident will be spun as bad decisions or bad luck but this looks like another case of rich dishonest assholes stealing everything that isn't nailed down.

 

[UKDslayer]

Testing 1,2,3,...testing...

 

[BCP]

I don't think that 40% is fine with expensive gas, sky high rents and war overseas. I think they are just too stupid to realize that is being purposely foisted on them. We have raised two consecutive generations of idiots!
The latest generation is so focused on racism, the LGBTXYZ movement and every other movement that is foisted on them that they don't see what kind of country they will be living in when they get older and then, of course, they will blame it on somebody else. They will still be living hand to mouth, 12 people in a run down apartment with 15 kids screaming and yelling. They will teach those kids that all of the woes of the world are the "mans" doing just like the hippies of the 60's did. With every new generation this country is going to devolve more and more.
The worst is yet to come.

Current generations are "fucked" because of monetary and social policies that were decided long before they were born & the things that would fix it are things that neither political party has the will to do.

 

[atepointer]

This looks like confirmation that the entire C-suite knew what was coming and didn't appoint a new RO to buy time to cash out and delay in the hopes that something might happen to cause the Fed to cut rates and save the company.

The lack of a new RO or an interim RO should have triggered all kinds of audits. My guess is the financial press and regulators are already preparing their "nobody could have seen this coming" speeches to save face. The whole incident will be spun as bad decisions or bad luck but this looks like another case of rich dishonest assholes stealing everything that isn't nailed down.

I was listening to CNBC radio driving yesterday and they were knuckled down pretty hard on trying to pin blame. I think there is a bit of CYA going on since Cramer said SIVB was a smoking undervalued buy a couple of weeks earlier. I don't typically listen to CNBC, but when in the car it's one of the few financial shows I can get on the fly. They had on an SIVB apologist then another throwing javelins. Will be quite the story to watch this week. In the meantime I used the 'baby out withe the bathwater' to grab more shares of my favorite BDCs during the panicspaz.

 

[Smitty192]

Manufactured drama.

Test driving the economy kill switch.

 

[Rthur]

Once one understands privatizing of the profits and publicizing the losses you can predict future moves.
The bailout was the largest farce perpetrated until the Rona.
Some can see a pattern.

R

 

[sirhrmechanic]

It may be educational to re-watch GW Bush's speech on the 2008 Global Financial Crisis from September of that year:



This ride will be different, but many of the same lessons will be reinforced.

Should also be remembered that the 2008 Crisis was kicked off by none other than Chuck Schumer... who started the whole bank run thing Labor Day weekend 2008... Ensuring that BHO won the election.

No... left hasn't crashed economy multiple times to get elected. 1992 anyone? 2008? 1976....

Sirhr

 

[E. Bryant]

Should also be remembered that the 2008 Crisis was kicked off by none other than Chuck Schumer... who started the whole bank run thing Labor Day weekend 2008... Ensuring that BHO won the election.

No... left hasn't crashed economy multiple times to get elected. 1992 anyone? 2008? 1976....

Sirhr

The 2008 crisis was rolling way before that point. Schumer exploited the situation for his party's benefit, but also recall that a couple months before this, McCain rolled out Phil Gramm (the same man that cosponsored Gramm-Leach-Bliley) to proclaim that there were no problems with the economy. That pretty much handled the issue to Obama.

The current crisis will be another one with bipartisan roots that each party will attempt to exploit. Really looking forward to the hypocritical finger-pointing phase, which will be used as a distraction from the looting-the-Treasury phase.

 

[sirhrmechanic]

The 2008 crisis was rolling way before that point. Schumer exploited the situation for his party's benefit, but also recall that a couple months before this, McCain rolled out Phil Gramm (the same man that cosponsored Gramm-Leach-Bliley) to proclaim that there were no problems with the economy. That pretty much handled the issue to Obama.

The current crisis will be another one with bipartisan roots that each party will attempt to exploit. Really looking forward to the hypocritical finger-pointing phase, which will be used as a distraction from the looting-the-Treasury phase.

Agreed... but I will argue that the 'crisis' probably could have been either Soft-Landed or avoided if Schumer had not kicked the stool out in a very public display... designed to tank the economy before the election.

The fundamentals of the mortgage economy were, indeed, a mess. But I'll assert that the whole 'mess' could have been managed downwards into, say, a minor kerfuffle. Or at least would not have become a massive crisis... if not egged on by Schumer.

But it's water under the bridge. Every 20 years or so the economy has to get crashed in order to steal the savings of small investors and wipe out savings with inflation. So nothing new going on.

Sirhr

 

[stemikel]

It is all going ahead according to the plan.

 

[BurtG]

Looking forward to being told by Wall Street and the Government that we need to bail out banks to save America again...

Another f ing theft scheme by the organized crime oligarchy and @Bender s people

 

[n2ishun]

Some bank called "Silvergate" is allegedly shut down too.
Can anyone confirm or deny ?
Having trouble finding more on it.