Silicon Valley Bank Collapse

[Vintage]

lulz waiting for the collapse can't wait longer, come on?

 

[h00]

Here ya go, haven't watched this yet. Is it any good? With how bad NPR is these days I'm a bit hesitant to expect PBS to do a quality job.

Frontline is rather independent and still puts out quality content

 

[SolidStateSurvivor]

I've been a bit out of the loop, but haven't two more major banks collapsed recently?

 

[Jade]

I've been a bit out of the loop, but haven't two more major banks collapsed recently?

yep

Another Bank On The Brink: PacWest Stock Crashes 53% As It Reportedly Weighs Sale

PacWest's valuation was cut in half in a matter of minutes in after-hours trading Wednesday after a Bloomberg report suggested it could be the next regional bank to fail.

www.forbes.com

In an Unsteady Banking Industry, First Republic’s Problems Stood Out

The bank's rivals appear on firmer footing this time, in contrast with the widespread panic after the failures of Silicon Valley Bank and Signature Bank in March.

www.nytimes.com

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Fed faces bank collapse and debt ceiling fears as it prepares to raise interest rates for the 10th time

The wide range of potential outcomes could provoke divisions among Fed officials, even as they're expected on Wednesday to raise their benchmark rate to 5.1%, the highest level in 16 years.

fortune.com

 

[Natalia Simp]

There's more on the chopping block.

View: https://twitter.com/TheInsiderPaper/status/1653438002029527040

 

[SolidStateSurvivor]

Economics isn't my strong point at all, but all signs are pointing to us getting another 2008 (but even worse) right?

Are there any ways for an average/poor individual to effectively minimize the damage all of this might cause? Or better yet, something to capitalize upon when the crash hits? I've seen people hype up this new Apple bank account thing with 5% APY but aren't you still going to be losing the value of what you're putting in a year from now with how bad inflation is (in other words, better off spending/investing the money while it still offers greater spending power?)

Or is this the one where getting a gun and ammo is the best investment?

 

[Natalia Simp]

all signs are pointing to us getting another 2008 (but even worse) right?

Yes, but that's because 2008 never ended. Everyone tried to print their way out, but the money printer can only go on as far as the economy is elastic.

The bank failures are not due to slowing economic output in the US, but because any bonds a bank buys will be useless the next time the Fed raises rates, which can be in a couple of days, or a few weeks. There's a whole rabbit hole in how banks invest the money they hold, including leveraging their investments to get more money, but an actual banker will do a better job explaining that.

What that means in a nutshell: if you're under 250K in a bank, per bank, you're safe; if you're a small bank that leverages investments to get more loans, you're finished; if you're a large bank that does all types of fuckery, you'll get bailed out since you're the intermediary for the corporate account holders, but that means sacrificing the middle class account holders since they no longer hold faith in you. Credit unions should be safer, but laws and regulations around them vary state by state, IIRC.

From a federal perspective, the US should be fine, IMO. Raise interest rates, get people to stop spending money, slow down the economy, tamper inflation. At the same time, build new avenues for growth: bring back high margin manufacturing, already happening for chips; build your military might to get lower income families making money and foster some love/faith/pride in the country, which should happen because of China; stop exporting natrual resources, especially to economic rivals, this could be a fail since the drive for short-term success is too entrenched; and make sure your neighbours are stable, non-economic rivals, this won't happen since the cartels in Mexico and LATAM are far too powerful.

Are there any ways for an average/poor individual to effectively minimize the damage all of this might cause?

Realistically, nothing. That doesn't have anything with the economic conditions, but everything to do with being middle class. If you're genuinely poor, there are usually programs and work offered, but that only gets you above the line.

If you have space, plant some vegetables or fruit. If you have land get some chickens, or cows. Substinence farming is very common in poor countries because it is cheap in the long haul, and provides life's necessities.

I've seen people hype up this new Apple bank account thing with 5% APY but aren't you still going to be losing the value of what you're putting in a year from now with how bad inflation is (in other words, better off spending/investing the money while it still offers greater spending power?)

It's a bear market, everything will be bad against inflation. This is the time your parents have been telling you to save for (hopefully). Savings will get reduced, life comforts will get torn down. Families will have to scale down and start sharing bathrooms again (the horror).

Or is this the one where getting a gun and ammo is the best investment?

Ammo currencies are a meme if you're in the west. If it ever gets that bad, even the guns won't save you.

True, real, and lasting economic engines are land, and communities. If you have land you can work it, build something with it, create something on it, a number of different options. As for communities, you can't do everything on your own, there will be some shared work in your local region. And communities are built around a shared experience, and usually share some greater-than-life ideals and goals. Religions aren't some magical, la-la land ideas that >reddit loves to mock. Religion is a strong binding force when times are tough, and communities will automatically gravitate towards one. Build relationships, share work, look past skin-deep and superficial differences and help each other.

Maybe consider getting a 3D printer, or CNC, if nobody you know has one. Those are useful to create small replacement parts for machines no longer supported.

That's why everyone hates [da Jooo] landlords and globohomos, it's a very crude way to use land and labour that only works because law enforcement isn't that corrupt, or there isn't a competing mafia in the region. If you're not going to use the land to do something, sell it, there's someone out there who will make something with it.

The west has largely forgotten how to create, since boomers transformed it into a service economy. Hopefully this time the shock will be short and hard enough to teach everyone the drawbacks of having no local production, and retaining knowledge. Even something simple like growing trees around a farming patch, to prevent the top soil form blowing away and creating another dust bowl. Looking at your corpo farms, run by MBAs in office towers, always hunting the next revenue growth target.

 

[Some_porcupine]

hell if they go down then all our rich overlords will be in serious trouble, every millionaire and above keeps their money in either swiss banks or Cayman island banks. Maybe I'll be proven wrong, and SVB will cascade into more and more bank failures as people realize they're total frauds.

Just a note, are you still there?
Otherwise RIP thread

 

[Some_porcupine]

If you're not going to use the land to do something, sell it, there's someone out there who will make something with it.

Don't
Causes housing crisis