Silicon Valley Bank closes

Blasterbot

Well-known member

Apparently they handled a lot of Cali tech sector start ups. It got mentioned on TimcastIRL with Steve Bannon. Bannon was emphasizing that he believes that they will be going to congress for a bail out. if this bank does fail then a lot of multimillion dollar accounts are beyond FDIC insurance will need to fight over what is left of its corpse to recoup some of the loses. getting some real 2008 vibes here.
 
The banks used up all of their political capital during the last crisis.

If they need a mass bailout again at the publics expense....it wont be pretty.
I'm not sure that's true.

I'm wondering how much they "donate" to whom, and what connected groups have interests there. They might just get bailed out again.


Won't fix the underling issues, but that'd require either fixing our system or letting everything fall over and starting again. It'll most likely just get patched over while the hole is dug deeper.
 
I'm not sure that's true.

I'm wondering how much they "donate" to whom, and what connected groups have interests there. They might just get bailed out again.


Won't fix the underling issues, but that'd require either fixing our system or letting everything fall over and starting again. It'll most likely just get patched over while the hole is dug deeper.

The price for bailing them out gets a whole lot bigger.

People still have a lot of anger there and in the long run putting off the crisis just makes the ultiment one that much worse.
 
They will gladly bail them out. Its the perfect excuse to destroy more of the American economy while claiming to help.
 
of course they are. and they are going to say if we don't do it Silicon valley is doomed and innovation in the US will die out and china will overtake us making it a national security thing. establishment republicans will likely jump on it with the dems in that case.
 
Response, "Silicon Valley is overrated as the 'source of all innovation.' It is frankly the source of income for the state of California." California has amptly demonstrated their insanity to the rest of the US and the world. The US Government will no longer subsidize the insanity in California. Get your shit together."
I agree. will it sucker in the establishment of both parties and the lefties? probably. Left wing tends to stay in lockstep. if I were a betting man I would bet on the biden admin and congress making the incorrect decision and saddling us with yet another corperate bail out. how many republicans in the house do you think have the balls to stymie this?
 
The banks used up all of their political capital during the last crisis.

If they need a mass bailout again at the publics expense....it wont be pretty.
I'd agree with this one. I think fears of another bailout are overhyped currently, and I very much doubt those calling for one will be getting their way. Perhaps ESPECIALLY when this bank seems to have been very squarely focused upon big-money clients instead of the likes of JP Morgan and such in the 2008 meltdown---the clients in here keeping millions of dollars in these savings accounts in a specialized bank servicing them incites much less sympathy than does banks with more 'normal' clientele did. Not to mention more, bipartisan, suspicion of bailouts.

Something to watch out for and maybe even write congress-critters with baseball-bat subtlety messages of 'Don't do this you idiots', but so far I'd guesstimate the public response is going to be 'Well. FDIC Insurance covers your first 250K. Beyond that, tough titties'.
 

Fucking lol, eat shit 'royals'.
I feel a slight twinge of guilt at the (potential) schadenfreude, but...
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The banks used up all of their political capital during the last crisis.

If they need a mass bailout again at the publics expense....it wont be pretty.
We can only hope.

Now, I am hearing reeing about 'muh systemic failure' because of this banks and how the FED needs to cut interest rates and bail these fuckers out, pronto.

If you are focused on funding Silicon Valley's lunacy and vaporware then it is painfully obvious you will get stomped when the bubble pops.
And right now the Fed needs to keep rates higher for as long as it takes to lower the inflation they started with over a decade of loose money, near zero interest rates and huge money printing, particularly the money printing during the COVID hysteria.
 
Welp. I hope this isn't the start of the dominoes and just a messy but isolated incident.
Hate to break it to you but SBF was a big part of what was making Silicon valley work by the looks of things. without the venture capital going into these corporations that is a fair bit of the californian economy. looking at what is likely the second order effects of this we are going to see a lot of them folding. admittedly most of these corporations were very woke and unprofitable so this is more of a burning of already dead wood. still I would expect this to get worse.
 
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