Silicon Valley Bank crisis: SVB Financial as its share collapse rattles major stocks...

[Fred Bloggs]

Regulators have shut Silicon Valley Bank and taken control of its deposits.

SVB Financial Group\'s shares crashed 60% Thursday and were down another 45% in premarket trading Friday after the company said it would sell $2.3 billion worth of stock to cover massive losses on the lender\'s bond portfolio.

Wall Street\'s four biggest banks – JPMorgan, Bank of America, Wells Fargo, and Morgan Stanley – shed $55 billion in combined market value Thursday with investors rattled by the implosion of SVB and Silvergate, according to data from Refinitiv.

Billionaire investor Bill Ackman has called for the US government to bail out the company because of its important role in the world of venture capital.

https://markets.businessinsider.com/news/stocks/svb-silicon-valley-bank-collapse-jpmorgan-morgan-stanley-bank-stocks-2023-3

 

[John Larkin]

On Fri, 10 Mar 2023 10:24:31 -0800 (PST), Fred Bloggs
<bloggs.fredbloggs.fred@gmail.com> wrote:

Regulators have shut Silicon Valley Bank and taken control of its deposits.

SVB Financial Group\'s shares crashed 60% Thursday and were down another 45% in premarket trading Friday after the company said it would sell $2.3 billion worth of stock to cover massive losses on the lender\'s bond portfolio.

Wall Street\'s four biggest banks – JPMorgan, Bank of America, Wells Fargo, and Morgan Stanley – shed $55 billion in combined market value Thursday with investors rattled by the implosion of SVB and Silvergate, according to data from Refinitiv.

Billionaire investor Bill Ackman has called for the US government to bail out the company because of its important role in the world of venture capital.

https://markets.businessinsider.com/news/stocks/svb-silicon-valley-bank-collapse-jpmorgan-morgan-stanley-bank-stocks-2023-3

This is the dot.bomb thing all over again. People don\'t learn, even
though there are lots of hilarious books from about 2001-ish.

 

[Fred Bloggs]

On Friday, March 10, 2023 at 1:39:03 PM UTC-5, John Larkin wrote:

On Fri, 10 Mar 2023 10:24:31 -0800 (PST), Fred Bloggs
bloggs.fred...@gmail.com> wrote:

Regulators have shut Silicon Valley Bank and taken control of its deposits.

SVB Financial Group\'s shares crashed 60% Thursday and were down another 45% in premarket trading Friday after the company said it would sell $2.3 billion worth of stock to cover massive losses on the lender\'s bond portfolio.

Wall Street\'s four biggest banks – JPMorgan, Bank of America, Wells Fargo, and Morgan Stanley – shed $55 billion in combined market value Thursday with investors rattled by the implosion of SVB and Silvergate, according to data from Refinitiv.

Billionaire investor Bill Ackman has called for the US government to bail out the company because of its important role in the world of venture capital.

https://markets.businessinsider.com/news/stocks/svb-silicon-valley-bank-collapse-jpmorgan-morgan-stanley-bank-stocks-2023-3
This is the dot.bomb thing all over again. People don\'t learn, even
though there are lots of hilarious books from about 2001-ish.

In other news, the Biden administration has released a 2024 budget proposal of nearly $7 Trillion.

 

[John Larkin]

On Fri, 10 Mar 2023 10:49:29 -0800 (PST), Fred Bloggs
<bloggs.fredbloggs.fred@gmail.com> wrote:

On Friday, March 10, 2023 at 1:39:03?PM UTC-5, John Larkin wrote:
On Fri, 10 Mar 2023 10:24:31 -0800 (PST), Fred Bloggs
bloggs.fred...@gmail.com> wrote:

Regulators have shut Silicon Valley Bank and taken control of its deposits.

SVB Financial Group\'s shares crashed 60% Thursday and were down another 45% in premarket trading Friday after the company said it would sell $2.3 billion worth of stock to cover massive losses on the lender\'s bond portfolio.

Wall Street\'s four biggest banks – JPMorgan, Bank of America, Wells Fargo, and Morgan Stanley – shed $55 billion in combined market value Thursday with investors rattled by the implosion of SVB and Silvergate, according to data from Refinitiv.

Billionaire investor Bill Ackman has called for the US government to bail out the company because of its important role in the world of venture capital.

https://markets.businessinsider.com/news/stocks/svb-silicon-valley-bank-collapse-jpmorgan-morgan-stanley-bank-stocks-2023-3
This is the dot.bomb thing all over again. People don\'t learn, even
though there are lots of hilarious books from about 2001-ish.

In other news, the Biden administration has released a 2024 budget proposal of nearly $7 Trillion.

Why do we still have pennies?

 

[legg]

On Fri, 10 Mar 2023 10:24:31 -0800 (PST), Fred Bloggs
<bloggs.fredbloggs.fred@gmail.com> wrote:

Regulators have shut Silicon Valley Bank and taken control of its deposits.

SVB Financial Group\'s shares crashed 60% Thursday and were down another 45% in premarket trading Friday after the company said it would sell $2.3 billion worth of stock to cover massive losses on the lender\'s bond portfolio.

Wall Street\'s four biggest banks – JPMorgan, Bank of America, Wells Fargo, and Morgan Stanley – shed $55 billion in combined market value Thursday with investors rattled by the implosion of SVB and Silvergate, according to data from Refinitiv.

Billionaire investor Bill Ackman has called for the US government to bail out the company because of its important role in the world of venture capital.

https://markets.businessinsider.com/news/stocks/svb-silicon-valley-bank-collapse-jpmorgan-morgan-stanley-bank-stocks-2023-3

200 billion up in smoke?

RL

 

[John Larkin]

On Sat, 11 Mar 2023 07:39:14 -0500, legg <legg@nospam.magma.ca> wrote:

On Fri, 10 Mar 2023 10:24:31 -0800 (PST), Fred Bloggs
bloggs.fredbloggs.fred@gmail.com> wrote:

Regulators have shut Silicon Valley Bank and taken control of its deposits.

SVB Financial Group\'s shares crashed 60% Thursday and were down another 45% in premarket trading Friday after the company said it would sell $2.3 billion worth of stock to cover massive losses on the lender\'s bond portfolio.

Wall Street\'s four biggest banks – JPMorgan, Bank of America, Wells Fargo, and Morgan Stanley – shed $55 billion in combined market value Thursday with investors rattled by the implosion of SVB and Silvergate, according to data from Refinitiv.

Billionaire investor Bill Ackman has called for the US government to bail out the company because of its important role in the world of venture capital.

https://markets.businessinsider.com/news/stocks/svb-silicon-valley-bank-collapse-jpmorgan-morgan-stanley-bank-stocks-2023-3

200 billion up in smoke?

RL

I really don\'t understand this, but apparently they loaned billions to
non-profit-making VCs and tech startups and wineries, so when the run
started they couldn\'t recover the money they loaned out, because the
borrowers didn\'t have any actual assets.

And they had a bunch of billions stashed in treasuries, whose value
plummeted when the morons running the fed decided to play with
interest rates.

We\'d be much better off without economists. And VCs. Maybe we can make
both illegal.

 

[Fred Bloggs]

On Saturday, March 11, 2023 at 12:28:41 PM UTC-5, John Larkin wrote:

On Sat, 11 Mar 2023 07:39:14 -0500, legg <le...@nospam.magma.ca> wrote:

On Fri, 10 Mar 2023 10:24:31 -0800 (PST), Fred Bloggs
bloggs.fred...@gmail.com> wrote:

Regulators have shut Silicon Valley Bank and taken control of its deposits.

SVB Financial Group\'s shares crashed 60% Thursday and were down another 45% in premarket trading Friday after the company said it would sell $2.3 billion worth of stock to cover massive losses on the lender\'s bond portfolio.

Wall Street\'s four biggest banks – JPMorgan, Bank of America, Wells Fargo, and Morgan Stanley – shed $55 billion in combined market value Thursday with investors rattled by the implosion of SVB and Silvergate, according to data from Refinitiv.

Billionaire investor Bill Ackman has called for the US government to bail out the company because of its important role in the world of venture capital.

https://markets.businessinsider.com/news/stocks/svb-silicon-valley-bank-collapse-jpmorgan-morgan-stanley-bank-stocks-2023-3

200 billion up in smoke?

RL
I really don\'t understand this, but apparently they loaned billions to
non-profit-making VCs and tech startups and wineries, so when the run
started they couldn\'t recover the money they loaned out, because the
borrowers didn\'t have any actual assets.

And they had a bunch of billions stashed in treasuries, whose value
plummeted when the morons running the fed decided to play with
interest rates.

We\'d be much better off without economists. And VCs. Maybe we can make
both illegal.

It\'s impossible to know anything for sure from reading the idiotic news articles on the matter. But this much is clear. The majority of SVB account holders are tech industry businesses. With the economic downturn and increased interest rates, the tech startups were no longer able to finance their operational costs through investments or going public (IPO), so they had to start drawing from their accounts at SVB. The bank could not handle the sudden demand for real cash and was forced to liquidate assets, of which it has over $200B. They started by selling a $21B \"portfolio\" of treasury notes. The notes in their portfolio were all 10-year at 1.9% and therefore had to be discounted to compete with buying from Treasury directly which is offering 3.8% on their 10-years. From what I gather they could only get $19B from the sale- this from the bank declaring a $2B \"capital loss\" from it. The bank had no other choice than to sell $2B of their stock to fix the loss. The big stock sale caused their stock value to crash by some huge amount- I think it\'s down to 25% of its value before the sale- I think. The stock exchange pulled their listing and stopped any further trading on their stock. The Federal Deposit Insurance Corporation (FDIC) then announced that SVB was shut down and placed under its receivership. The FDIC added that it would seek to sell SVB\'s assets and that future dividend payments may be made to uninsured depositors.

https://www.reuters.com/business/finance/what-caused-silicon-valley-banks-failure-2023-03-10/

The federal government bailed out this bank back in 2008 with $235M, which was completely repaid within a year or so. This time it\'s much more money. They should try to keep the bank alive and not just cannibalize all its assets to placate a bunch of panic stricken VC vultures, that would just be dumb, and they\'re saying a lot of other banks are vulnerable to this kind of thing too. Banks have an excellent track record of repaying government bailouts fairly quickly and with a healthy interest.

 

[John Larkin]

On Sat, 11 Mar 2023 10:09:08 -0800 (PST), Fred Bloggs
<bloggs.fredbloggs.fred@gmail.com> wrote:

On Saturday, March 11, 2023 at 12:28:41?PM UTC-5, John Larkin wrote:
On Sat, 11 Mar 2023 07:39:14 -0500, legg <le...@nospam.magma.ca> wrote:

On Fri, 10 Mar 2023 10:24:31 -0800 (PST), Fred Bloggs
bloggs.fred...@gmail.com> wrote:

Regulators have shut Silicon Valley Bank and taken control of its deposits.

SVB Financial Group\'s shares crashed 60% Thursday and were down another 45% in premarket trading Friday after the company said it would sell $2.3 billion worth of stock to cover massive losses on the lender\'s bond portfolio.

Wall Street\'s four biggest banks – JPMorgan, Bank of America, Wells Fargo, and Morgan Stanley – shed $55 billion in combined market value Thursday with investors rattled by the implosion of SVB and Silvergate, according to data from Refinitiv.

Billionaire investor Bill Ackman has called for the US government to bail out the company because of its important role in the world of venture capital.

https://markets.businessinsider.com/news/stocks/svb-silicon-valley-bank-collapse-jpmorgan-morgan-stanley-bank-stocks-2023-3

200 billion up in smoke?

RL
I really don\'t understand this, but apparently they loaned billions to
non-profit-making VCs and tech startups and wineries, so when the run
started they couldn\'t recover the money they loaned out, because the
borrowers didn\'t have any actual assets.

And they had a bunch of billions stashed in treasuries, whose value
plummeted when the morons running the fed decided to play with
interest rates.

We\'d be much better off without economists. And VCs. Maybe we can make
both illegal.

It\'s impossible to know anything for sure from reading the idiotic news articles on the matter. But this much is clear. The majority of SVB account holders are tech industry businesses. With the economic downturn and increased interest rates, the tech startups were no longer able to finance their operational costs through investments or going public (IPO), so they had to start drawing from their accounts at SVB. The bank could not handle the sudden demand for real cash and was forced to liquidate assets, of which it has over $200B. They started by selling a $21B \"portfolio\" of treasury notes. The notes in their portfolio were all 10-year at 1.9% and therefore had to be discounted to compete with buying from Treasury directly which is offering 3.8% on their 10-years. From what I gather they could only get $19B from the sale- this from the bank declaring a $2B \"capital loss\" from it. The bank had no other choice than to sell $2B of their stock to fix the loss. The big stock sale
caused their stock value to crash by some huge amount- I think it\'s down to 25% of its value before the sale- I think. The stock exchange pulled their listing and stopped any further trading on their stock. The Federal Deposit Insurance Corporation (FDIC) then announced that SVB was shut down and placed under its receivership. The FDIC added that it would seek to sell SVB\'s assets and that future dividend payments may be made to uninsured depositors.

https://www.reuters.com/business/finance/what-caused-silicon-valley-banks-failure-2023-03-10/

The federal government bailed out this bank back in 2008 with $235M, which was completely repaid within a year or so. This time it\'s much more money. They should try to keep the bank alive and not just cannibalize all its assets to placate a bunch of panic stricken VC vultures, that would just be dumb, and they\'re saying a lot of other banks are vulnerable to this kind of thing too. Banks have an excellent track record of repaying government bailouts fairly quickly and with a healthy interest.

We were just talking about how it\'s like the bank run in \"It\'s A
Wonderful Life\" but without the kindly people to rescue things.
There\'s not a lot of kindly in Silicon Valley.

 

[Fred Bloggs]

On Saturday, March 11, 2023 at 1:18:42 PM UTC-5, John Larkin wrote:

On Sat, 11 Mar 2023 10:09:08 -0800 (PST), Fred Bloggs
bloggs.fred...@gmail.com> wrote:
On Saturday, March 11, 2023 at 12:28:41?PM UTC-5, John Larkin wrote:
On Sat, 11 Mar 2023 07:39:14 -0500, legg <le...@nospam.magma.ca> wrote:

On Fri, 10 Mar 2023 10:24:31 -0800 (PST), Fred Bloggs
bloggs.fred...@gmail.com> wrote:

Regulators have shut Silicon Valley Bank and taken control of its deposits.

SVB Financial Group\'s shares crashed 60% Thursday and were down another 45% in premarket trading Friday after the company said it would sell $2..3 billion worth of stock to cover massive losses on the lender\'s bond portfolio.

Wall Street\'s four biggest banks – JPMorgan, Bank of America, Wells Fargo, and Morgan Stanley – shed $55 billion in combined market value Thursday with investors rattled by the implosion of SVB and Silvergate, according to data from Refinitiv.

Billionaire investor Bill Ackman has called for the US government to bail out the company because of its important role in the world of venture capital.

https://markets.businessinsider.com/news/stocks/svb-silicon-valley-bank-collapse-jpmorgan-morgan-stanley-bank-stocks-2023-3

200 billion up in smoke?

RL
I really don\'t understand this, but apparently they loaned billions to
non-profit-making VCs and tech startups and wineries, so when the run
started they couldn\'t recover the money they loaned out, because the
borrowers didn\'t have any actual assets.

And they had a bunch of billions stashed in treasuries, whose value
plummeted when the morons running the fed decided to play with
interest rates.

We\'d be much better off without economists. And VCs. Maybe we can make
both illegal.

It\'s impossible to know anything for sure from reading the idiotic news articles on the matter. But this much is clear. The majority of SVB account holders are tech industry businesses. With the economic downturn and increased interest rates, the tech startups were no longer able to finance their operational costs through investments or going public (IPO), so they had to start drawing from their accounts at SVB. The bank could not handle the sudden demand for real cash and was forced to liquidate assets, of which it has over $200B. They started by selling a $21B \"portfolio\" of treasury notes. The notes in their portfolio were all 10-year at 1.9% and therefore had to be discounted to compete with buying from Treasury directly which is offering 3.8% on their 10-years. From what I gather they could only get $19B from the sale- this from the bank declaring a $2B \"capital loss\" from it. The bank had no other choice than to sell $2B of their stock to fix the loss. The big stock sale
caused their stock value to crash by some huge amount- I think it\'s down to 25% of its value before the sale- I think. The stock exchange pulled their listing and stopped any further trading on their stock. The Federal Deposit Insurance Corporation (FDIC) then announced that SVB was shut down and placed under its receivership. The FDIC added that it would seek to sell SVB\'s assets and that future dividend payments may be made to uninsured depositors.

https://www.reuters.com/business/finance/what-caused-silicon-valley-banks-failure-2023-03-10/

The federal government bailed out this bank back in 2008 with $235M, which was completely repaid within a year or so. This time it\'s much more money. They should try to keep the bank alive and not just cannibalize all its assets to placate a bunch of panic stricken VC vultures, that would just be dumb, and they\'re saying a lot of other banks are vulnerable to this kind of thing too. Banks have an excellent track record of repaying government bailouts fairly quickly and with a healthy interest.
We were just talking about how it\'s like the bank run in \"It\'s A
Wonderful Life\" but without the kindly people to rescue things.
There\'s not a lot of kindly in Silicon Valley.

I bet the Peter Thiel types took a big loss if their so-called investment in SVB was stock shares- maybe recovered 50 cents on the dollar if they hit it early. People should think about pulling their investment in his investment fund after showing such bad judgement.

 

[Joe Gwinn]

On Fri, 10 Mar 2023 16:18:30 -0800, John Larkin
<jlarkin@highlandSNIPMEtechnology.com> wrote:

On Fri, 10 Mar 2023 10:49:29 -0800 (PST), Fred Bloggs
bloggs.fredbloggs.fred@gmail.com> wrote:

On Friday, March 10, 2023 at 1:39:03?PM UTC-5, John Larkin wrote:
On Fri, 10 Mar 2023 10:24:31 -0800 (PST), Fred Bloggs
bloggs.fred...@gmail.com> wrote:

Regulators have shut Silicon Valley Bank and taken control of its deposits.

SVB Financial Group\'s shares crashed 60% Thursday and were down another 45% in premarket trading Friday after the company said it would sell $2.3 billion worth of stock to cover massive losses on the lender\'s bond portfolio.

Wall Street\'s four biggest banks – JPMorgan, Bank of America, Wells Fargo, and Morgan Stanley – shed $55 billion in combined market value Thursday with investors rattled by the implosion of SVB and Silvergate, according to data from Refinitiv.

Billionaire investor Bill Ackman has called for the US government to bail out the company because of its important role in the world of venture capital.

https://markets.businessinsider.com/news/stocks/svb-silicon-valley-bank-collapse-jpmorgan-morgan-stanley-bank-stocks-2023-3
This is the dot.bomb thing all over again. People don\'t learn, even
though there are lots of hilarious books from about 2001-ish.

In other news, the Biden administration has released a 2024 budget proposal of nearly $7 Trillion.

Why do we still have pennies?

For the children? Penny for your thoughts?

Joe

 

[John Larkin]

On Sat, 11 Mar 2023 10:30:57 -0800 (PST), Fred Bloggs
<bloggs.fredbloggs.fred@gmail.com> wrote:

On Saturday, March 11, 2023 at 1:18:42?PM UTC-5, John Larkin wrote:
On Sat, 11 Mar 2023 10:09:08 -0800 (PST), Fred Bloggs
bloggs.fred...@gmail.com> wrote:
On Saturday, March 11, 2023 at 12:28:41?PM UTC-5, John Larkin wrote:
On Sat, 11 Mar 2023 07:39:14 -0500, legg <le...@nospam.magma.ca> wrote:

On Fri, 10 Mar 2023 10:24:31 -0800 (PST), Fred Bloggs
bloggs.fred...@gmail.com> wrote:

Regulators have shut Silicon Valley Bank and taken control of its deposits.

SVB Financial Group\'s shares crashed 60% Thursday and were down another 45% in premarket trading Friday after the company said it would sell $2.3 billion worth of stock to cover massive losses on the lender\'s bond portfolio.

Wall Street\'s four biggest banks – JPMorgan, Bank of America, Wells Fargo, and Morgan Stanley – shed $55 billion in combined market value Thursday with investors rattled by the implosion of SVB and Silvergate, according to data from Refinitiv.

Billionaire investor Bill Ackman has called for the US government to bail out the company because of its important role in the world of venture capital.

https://markets.businessinsider.com/news/stocks/svb-silicon-valley-bank-collapse-jpmorgan-morgan-stanley-bank-stocks-2023-3

200 billion up in smoke?

RL
I really don\'t understand this, but apparently they loaned billions to
non-profit-making VCs and tech startups and wineries, so when the run
started they couldn\'t recover the money they loaned out, because the
borrowers didn\'t have any actual assets.

And they had a bunch of billions stashed in treasuries, whose value
plummeted when the morons running the fed decided to play with
interest rates.

We\'d be much better off without economists. And VCs. Maybe we can make
both illegal.

It\'s impossible to know anything for sure from reading the idiotic news articles on the matter. But this much is clear. The majority of SVB account holders are tech industry businesses. With the economic downturn and increased interest rates, the tech startups were no longer able to finance their operational costs through investments or going public (IPO), so they had to start drawing from their accounts at SVB. The bank could not handle the sudden demand for real cash and was forced to liquidate assets, of which it has over $200B. They started by selling a $21B \"portfolio\" of treasury notes. The notes in their portfolio were all 10-year at 1.9% and therefore had to be discounted to compete with buying from Treasury directly which is offering 3.8% on their 10-years. From what I gather they could only get $19B from the sale- this from the bank declaring a $2B \"capital loss\" from it. The bank had no other choice than to sell $2B of their stock to fix the loss. The big stock sale
caused their stock value to crash by some huge amount- I think it\'s down to 25% of its value before the sale- I think. The stock exchange pulled their listing and stopped any further trading on their stock. The Federal Deposit Insurance Corporation (FDIC) then announced that SVB was shut down and placed under its receivership. The FDIC added that it would seek to sell SVB\'s assets and that future dividend payments may be made to uninsured depositors.

https://www.reuters.com/business/finance/what-caused-silicon-valley-banks-failure-2023-03-10/

The federal government bailed out this bank back in 2008 with $235M, which was completely repaid within a year or so. This time it\'s much more money. They should try to keep the bank alive and not just cannibalize all its assets to placate a bunch of panic stricken VC vultures, that would just be dumb, and they\'re saying a lot of other banks are vulnerable to this kind of thing too. Banks have an excellent track record of repaying government bailouts fairly quickly and with a healthy interest.
We were just talking about how it\'s like the bank run in \"It\'s A
Wonderful Life\" but without the kindly people to rescue things.
There\'s not a lot of kindly in Silicon Valley.

I bet the Peter Thiel types took a big loss if their so-called investment in SVB was stock shares- maybe recovered 50 cents on the dollar if they hit it early. People should think about pulling their investment in his investment fund after showing such bad judgement.

Reports say that Thiel bailed early.

 

[Joe Gwinn]

On Sat, 11 Mar 2023 09:28:27 -0800, John Larkin
<jlarkin@highlandSNIPMEtechnology.com> wrote:

On Sat, 11 Mar 2023 07:39:14 -0500, legg <legg@nospam.magma.ca> wrote:

On Fri, 10 Mar 2023 10:24:31 -0800 (PST), Fred Bloggs
bloggs.fredbloggs.fred@gmail.com> wrote:

Regulators have shut Silicon Valley Bank and taken control of its deposits.

SVB Financial Group\'s shares crashed 60% Thursday and were down another 45% in premarket trading Friday after the company said it would sell $2.3 billion worth of stock to cover massive losses on the lender\'s bond portfolio.

Wall Street\'s four biggest banks – JPMorgan, Bank of America, Wells Fargo, and Morgan Stanley – shed $55 billion in combined market value Thursday with investors rattled by the implosion of SVB and Silvergate, according to data from Refinitiv.

Billionaire investor Bill Ackman has called for the US government to bail out the company because of its important role in the world of venture capital.

.<https://markets.businessinsider.com/news/stocks/svb-silicon-valley-bank-collapse-jpmorgan-morgan-stanley-bank-stocks-2023-3

200 billion up in smoke?

RL

I really don\'t understand this, but apparently they loaned billions to
non-profit-making VCs and tech startups and wineries, so when the run
started they couldn\'t recover the money they loaned out, because the
borrowers didn\'t have any actual assets.

And they had a bunch of billions stashed in treasuries, whose value
plummeted when the morons running the fed decided to play with
interest rates.

It\'s an oft-told tale in Finance, allowing the time period of loans
and obligations to become mismatched. When something global like
interest rates changes substantially, one side or the other is
\"embarrassed\". Here is the fuller story:

..<https://www.wsj.com/articles/silicon-valley-bank-silvergate-capital-markets-fdic-federal-reserve-c66be86a?st=6iob9hipp0n26nn&reflink=desktopwebshare_permalink>

Ref: \"And Now for a Little Bank Panic -- After the credit mania, the
monetary reckoning takes two casualties, WSJ, 10 March 2023. The
above link is claimed to bypass their paywall.

We\'d be much better off without economists. And VCs. Maybe we can make
both illegal.

Economists are useful for telling one exactly what not to believe.

VCs are actually useful, because they fund the high-risk, high-return
projects. Some 80% of what they fund fails, 10% neither lives nor
dies, and 10% is wildly successful, and pays for the failed 80%, with
much profit remaining. Which only encourages the VCs.

Joe Gwinn

 

[John Larkin]

On Sat, 11 Mar 2023 14:17:56 -0500, Joe Gwinn <joegwinn@comcast.net>
wrote:

On Sat, 11 Mar 2023 09:28:27 -0800, John Larkin
jlarkin@highlandSNIPMEtechnology.com> wrote:

On Sat, 11 Mar 2023 07:39:14 -0500, legg <legg@nospam.magma.ca> wrote:

On Fri, 10 Mar 2023 10:24:31 -0800 (PST), Fred Bloggs
bloggs.fredbloggs.fred@gmail.com> wrote:

Regulators have shut Silicon Valley Bank and taken control of its deposits.

SVB Financial Group\'s shares crashed 60% Thursday and were down another 45% in premarket trading Friday after the company said it would sell $2.3 billion worth of stock to cover massive losses on the lender\'s bond portfolio.

Wall Street\'s four biggest banks – JPMorgan, Bank of America, Wells Fargo, and Morgan Stanley – shed $55 billion in combined market value Thursday with investors rattled by the implosion of SVB and Silvergate, according to data from Refinitiv.

Billionaire investor Bill Ackman has called for the US government to bail out the company because of its important role in the world of venture capital.

.<https://markets.businessinsider.com/news/stocks/svb-silicon-valley-bank-collapse-jpmorgan-morgan-stanley-bank-stocks-2023-3

200 billion up in smoke?

RL

I really don\'t understand this, but apparently they loaned billions to
non-profit-making VCs and tech startups and wineries, so when the run
started they couldn\'t recover the money they loaned out, because the
borrowers didn\'t have any actual assets.

And they had a bunch of billions stashed in treasuries, whose value
plummeted when the morons running the fed decided to play with
interest rates.

It\'s an oft-told tale in Finance, allowing the time period of loans
and obligations to become mismatched. When something global like
interest rates changes substantially, one side or the other is
\"embarrassed\". Here is the fuller story:

.<https://www.wsj.com/articles/silicon-valley-bank-silvergate-capital-markets-fdic-federal-reserve-c66be86a?st=6iob9hipp0n26nn&reflink=desktopwebshare_permalink

Ref: \"And Now for a Little Bank Panic -- After the credit mania, the
monetary reckoning takes two casualties, WSJ, 10 March 2023. The
above link is claimed to bypass their paywall.


We\'d be much better off without economists. And VCs. Maybe we can make
both illegal.

Economists are useful for telling one exactly what not to believe.

VCs are actually useful, because they fund the high-risk, high-return
projects. Some 80% of what they fund fails, 10% neither lives nor
dies, and 10% is wildly successful, and pays for the failed 80%, with
much profit remaining. Which only encourages the VCs.

Joe Gwinn

The \"better\" VCs make money even when the businesses fail. They get
rich and get out at IPO time and let mere mortals lose money. I\'ve
been on the inside of a big deal like that and fortunately just lost
some time.

 

[Anthony William Sloman]

On Sunday, March 12, 2023 at 4:28:41 AM UTC+11, John Larkin wrote:

On Sat, 11 Mar 2023 07:39:14 -0500, legg <le...@nospam.magma.ca> wrote:

On Fri, 10 Mar 2023 10:24:31 -0800 (PST), Fred Bloggs
bloggs.fred...@gmail.com> wrote:

Regulators have shut Silicon Valley Bank and taken control of its deposits.

SVB Financial Group\'s shares crashed 60% Thursday and were down another 45% in premarket trading Friday after the company said it would sell $2.3 billion worth of stock to cover massive losses on the lender\'s bond portfolio.

Wall Street\'s four biggest banks – JPMorgan, Bank of America, Wells Fargo, and Morgan Stanley – shed $55 billion in combined market value Thursday with investors rattled by the implosion of SVB and Silvergate, according to data from Refinitiv.

Billionaire investor Bill Ackman has called for the US government to bail out the company because of its important role in the world of venture capital.

https://markets.businessinsider.com/news/stocks/svb-silicon-valley-bank-collapse-jpmorgan-morgan-stanley-bank-stocks-2023-3

200 billion up in smoke?

I really don\'t understand this, but apparently they loaned billions to
non-profit-making VCs and tech startups and wineries, so when the run
started they couldn\'t recover the money they loaned out, because the
borrowers didn\'t have any actual assets.

And they had a bunch of billions stashed in treasuries, whose value
plummeted when the morons running the fed decided to play with
interest rates.

We\'d be much better off without economists. And VCs. Maybe we can make both illegal.

John Larkin doesn\'t know anything about economics, and imagines that this means that it is a virtue.

It\'s the kind of thing that egomaniacs do.

Venture capitalists are prepared to invest in companies with about a 5% chance of doing what they promise if the payoff can be more than twenty times the investment. People have been doing it for decades, so it seems to be a viable business model, even if John Larkin can\'t follow the logic.

Making stuff illegal doesn\'t stop it happening. Back-street economists and venture capitalist would do well, as do back-street abortionists when abortion is illegal.
Their customers have a harder time finding good ones, but John Larkin wouldn\'t care about that.

--
Bill Sloman, Sydney

 

[none]

In article <6udp0i1mte9gg8lgfsatagbe910ls665o8@4ax.com>,
John Larkin <xx@yy.com> wrote:

On Sat, 11 Mar 2023 07:39:14 -0500, legg <legg@nospam.magma.ca> wrote:

On Fri, 10 Mar 2023 10:24:31 -0800 (PST), Fred Bloggs
bloggs.fredbloggs.fred@gmail.com> wrote:

Regulators have shut Silicon Valley Bank and taken control of its deposits.

SVB Financial Group\'s shares crashed 60% Thursday and were down another 45% in premarket trading Friday after the
company said it would sell $2.3 billion worth of stock to cover massive losses on the lender\'s bond portfolio.

Wall Street\'s four biggest banks – JPMorgan, Bank of America, Wells Fargo, and Morgan Stanley – shed $55 billion in
combined market value Thursday with investors rattled by the implosion of SVB and Silvergate, according to data from
Refinitiv.

Billionaire investor Bill Ackman has called for the US government to bail out the company because of its important role
in the world of venture capital.

https://markets.businessinsider.com/news/stocks/svb-silicon-valley-bank-collapse-jpmorgan-morgan-stanley-bank-stocks-2023-3

200 billion up in smoke?

RL

I really don\'t understand this, but apparently they loaned billions to
non-profit-making VCs and tech startups and wineries, so when the run
started they couldn\'t recover the money they loaned out, because the
borrowers didn\'t have any actual assets.

And they had a bunch of billions stashed in treasuries, whose value
plummeted when the morons running the fed decided to play with
interest rates.

We\'d be much better off without economists. And VCs. Maybe we can make
both illegal.

There was no good reason to increase the interest rate.
It was capitalist class struggle, to undermine the workers recent
advantages to negotiate wages. The result is intended to diminish
the job opportunities.
So much for the administrations intent to keep the economy floating.
The companies you mentioned go belly up.
Increasing inflation in this way each year steals a few (or more) percent of
each workers wages where each tiny raise has to battled fiercely.

Groetjes Albert
--
Don\'t praise the day before the evening. One swallow doesn\'t make spring.
You must not say \"hey\" before you have crossed the bridge. Don\'t sell the
hide of the bear until you shot it. Better one bird in the hand than ten in
the air. First gain is a cat spinning. - the Wise from Antrim -

 

[Ed Lee]

On Sunday, March 12, 2023 at 6:00:52 AM UTC-7, none albert wrote:

In article <6udp0i1mte9gg8lgf...@4ax.com>,
John Larkin <x...@yy.com> wrote:
On Sat, 11 Mar 2023 07:39:14 -0500, legg <le...@nospam.magma.ca> wrote:

On Fri, 10 Mar 2023 10:24:31 -0800 (PST), Fred Bloggs
bloggs.fred...@gmail.com> wrote:

Regulators have shut Silicon Valley Bank and taken control of its deposits.

SVB Financial Group\'s shares crashed 60% Thursday and were down another 45% in premarket trading Friday after the
company said it would sell $2.3 billion worth of stock to cover massive losses on the lender\'s bond portfolio.

Wall Street\'s four biggest banks – JPMorgan, Bank of America, Wells Fargo, and Morgan Stanley – shed $55 billion in
combined market value Thursday with investors rattled by the implosion of SVB and Silvergate, according to data from
Refinitiv.

Billionaire investor Bill Ackman has called for the US government to bail out the company because of its important role
in the world of venture capital.

https://markets.businessinsider.com/news/stocks/svb-silicon-valley-bank-collapse-jpmorgan-morgan-stanley-bank-stocks-2023-3

200 billion up in smoke?

RL

I really don\'t understand this, but apparently they loaned billions to
non-profit-making VCs and tech startups and wineries, so when the run
started they couldn\'t recover the money they loaned out, because the
borrowers didn\'t have any actual assets.

And they had a bunch of billions stashed in treasuries, whose value
plummeted when the morons running the fed decided to play with
interest rates.

We\'d be much better off without economists. And VCs. Maybe we can make
both illegal.

There was no good reason to increase the interest rate.

Inflation is the main reason to increase interest rate. Property and stock bubbles are side effects of inflation.

It was capitalist class struggle, to undermine the workers recent
advantages to negotiate wages. The result is intended to diminish
the job opportunities.
So much for the administrations intent to keep the economy floating.
The companies you mentioned go belly up.
Increasing inflation in this way each year steals a few (or more) percent of
each workers wages where each tiny raise has to battled fiercely.

You are explaining the problem better than I do.

 

[Anthony William Sloman]

On Monday, March 13, 2023 at 1:04:39 AM UTC+11, Ed Lee wrote:

On Sunday, March 12, 2023 at 6:00:52 AM UTC-7, none albert wrote:
In article <6udp0i1mte9gg8lgf...@4ax.com>,
John Larkin <x...@yy.com> wrote:
On Sat, 11 Mar 2023 07:39:14 -0500, legg <le...@nospam.magma.ca> wrote:

On Fri, 10 Mar 2023 10:24:31 -0800 (PST), Fred Bloggs
bloggs.fred...@gmail.com> wrote:

Regulators have shut Silicon Valley Bank and taken control of its deposits.

SVB Financial Group\'s shares crashed 60% Thursday and were down another 45% in premarket trading Friday after the
company said it would sell $2.3 billion worth of stock to cover massive losses on the lender\'s bond portfolio.

Wall Street\'s four biggest banks – JPMorgan, Bank of America, Wells Fargo, and Morgan Stanley – shed $55 billion in
combined market value Thursday with investors rattled by the implosion of SVB and Silvergate, according to data from
Refinitiv.

Billionaire investor Bill Ackman has called for the US government to bail out the company because of its important role
in the world of venture capital.

https://markets.businessinsider.com/news/stocks/svb-silicon-valley-bank-collapse-jpmorgan-morgan-stanley-bank-stocks-2023-3

200 billion up in smoke?

RL

I really don\'t understand this, but apparently they loaned billions to
non-profit-making VCs and tech startups and wineries, so when the run
started they couldn\'t recover the money they loaned out, because the
borrowers didn\'t have any actual assets.

And they had a bunch of billions stashed in treasuries, whose value
plummeted when the morons running the fed decided to play with
interest rates.

We\'d be much better off without economists. And VCs. Maybe we can make
both illegal.

There was no good reason to increase the interest rate.

Inflation is the main reason to increase interest rate. Property and stock bubbles are side effects of inflation.

They aren\'t. Both depend on the irrational pursuit of a finite resource, which can also drive inflation. Raising interest rates discourages people from borrowing money to try to get assets which happen to be in short supply.

It was capitalist class struggle, to undermine the workers recent
advantages to negotiate wages. The result is intended to diminish
the job opportunities.

Twaddle. The trade union movement is doing badly pretty much everywhere. Capital is now busy reducing the number of competing firms to make it easier to push up prices

So much for the administrations intent to keep the economy floating.

The companies you mentioned go belly up.

Name one. Venture capitalist outfits fail a lot, but they are intended to.

Increasing inflation in this way each year steals a few (or more) percent of
each workers wages where each tiny raise has to battled fiercely.

It also steals from what the companies get back on each item they sell. Raising prices isn\'t easy either.

> You are explaining the problem better than I do.

True, but neither of you is exactly well-informed, and the \"explanation\" is rubbish.

--
Bill Sloman, Sydney

 

[Ed Lee]

On Sunday, March 12, 2023 at 7:38:36 AM UTC-7, Anthony William Sloman wrote:

On Monday, March 13, 2023 at 1:04:39 AM UTC+11, Ed Lee wrote:
On Sunday, March 12, 2023 at 6:00:52 AM UTC-7, none albert wrote:
In article <6udp0i1mte9gg8lgf...@4ax.com>,
John Larkin <x...@yy.com> wrote:
On Sat, 11 Mar 2023 07:39:14 -0500, legg <le...@nospam.magma.ca> wrote:

On Fri, 10 Mar 2023 10:24:31 -0800 (PST), Fred Bloggs
bloggs.fred...@gmail.com> wrote:

Regulators have shut Silicon Valley Bank and taken control of its deposits.

SVB Financial Group\'s shares crashed 60% Thursday and were down another 45% in premarket trading Friday after the
company said it would sell $2.3 billion worth of stock to cover massive losses on the lender\'s bond portfolio.

Wall Street\'s four biggest banks – JPMorgan, Bank of America, Wells Fargo, and Morgan Stanley – shed $55 billion in
combined market value Thursday with investors rattled by the implosion of SVB and Silvergate, according to data from
Refinitiv.

Billionaire investor Bill Ackman has called for the US government to bail out the company because of its important role
in the world of venture capital.

https://markets.businessinsider.com/news/stocks/svb-silicon-valley-bank-collapse-jpmorgan-morgan-stanley-bank-stocks-2023-3

200 billion up in smoke?

RL

I really don\'t understand this, but apparently they loaned billions to
non-profit-making VCs and tech startups and wineries, so when the run
started they couldn\'t recover the money they loaned out, because the
borrowers didn\'t have any actual assets.

And they had a bunch of billions stashed in treasuries, whose value
plummeted when the morons running the fed decided to play with
interest rates.

We\'d be much better off without economists. And VCs. Maybe we can make
both illegal.

There was no good reason to increase the interest rate.

Inflation is the main reason to increase interest rate. Property and stock bubbles are side effects of inflation.
They aren\'t. Both depend on the irrational pursuit of a finite resource,

with flexible resource (cash) that is a function of interest rate. If you (Erdonomic) lower rate, there are less interests in holding cash, more interest in holding properties and stocks, and thus more inflation.

 

[John Larkin]

On Sun, 12 Mar 2023 14:00:44 +0100, albert@cherry.(none) (albert)
wrote:

In article <6udp0i1mte9gg8lgfsatagbe910ls665o8@4ax.com>,
John Larkin <xx@yy.com> wrote:
On Sat, 11 Mar 2023 07:39:14 -0500, legg <legg@nospam.magma.ca> wrote:

On Fri, 10 Mar 2023 10:24:31 -0800 (PST), Fred Bloggs
bloggs.fredbloggs.fred@gmail.com> wrote:

Regulators have shut Silicon Valley Bank and taken control of its deposits.

SVB Financial Group\'s shares crashed 60% Thursday and were down another 45% in premarket trading Friday after the
company said it would sell $2.3 billion worth of stock to cover massive losses on the lender\'s bond portfolio.

Wall Street\'s four biggest banks – JPMorgan, Bank of America, Wells Fargo, and Morgan Stanley – shed $55 billion in
combined market value Thursday with investors rattled by the implosion of SVB and Silvergate, according to data from
Refinitiv.

Billionaire investor Bill Ackman has called for the US government to bail out the company because of its important role
in the world of venture capital.

https://markets.businessinsider.com/news/stocks/svb-silicon-valley-bank-collapse-jpmorgan-morgan-stanley-bank-stocks-2023-3

200 billion up in smoke?

RL

I really don\'t understand this, but apparently they loaned billions to
non-profit-making VCs and tech startups and wineries, so when the run
started they couldn\'t recover the money they loaned out, because the
borrowers didn\'t have any actual assets.

And they had a bunch of billions stashed in treasuries, whose value
plummeted when the morons running the fed decided to play with
interest rates.

We\'d be much better off without economists. And VCs. Maybe we can make
both illegal.


There was no good reason to increase the interest rate.

There certainly was. It was a mandatory, panicked reaction to their
forcing interest rates to zero.

Economists should have to study basic control theory, at least as far
as \"limit-cycle oscillation.\"

It was capitalist class struggle, to undermine the workers recent
advantages to negotiate wages. The result is intended to diminish
the job opportunities.
So much for the administrations intent to keep the economy floating.
The companies you mentioned go belly up.
Increasing inflation in this way each year steals a few (or more) percent of
each workers wages where each tiny raise has to battled fiercely.

Groetjes Albert

Inflation will be the only way to manage $50 trillion in government
debt. The debt was no problem when interest rates were zero.

 

[Lamont Cranston]

On Saturday, March 11, 2023 at 11:28:41 AM UTC-6, John Larkin wrote:

And they had a bunch of billions stashed in treasuries, whose value
plummeted when the morons running the fed decided to play with
interest rates.

Those interest rate hikes also hurt many retirees that had went to the \"safer\" Bond
investments. I have a friend that is about 10 years older than I am, he has a mix of stocks and bonds
in his portfolio, taking the age old advice of moving into more bonds as you age. He keeps telling
me how poorly his mixed portfolio is doing, as both stocks and bonds are dropping. I was lucky to be a
little younger and could not see buying bonds that were paying such a low interest rate when I retired.

Mikek