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

[John Larkin]

On Sun, 12 Mar 2023 07:04:35 -0700 (PDT), Ed Lee
<edward.ming.lee@gmail.com> 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.

VCs need to be occasionally crushed to make the point that there is no
free money. Just step back and let them do that to themselves.

Silicon Valley had two literally parallel paths of evolution. Page
Mill Road had the constructive, patriotic, moral companies like HP and
Varian. Sand Hill road was the hangout of vulture capitalists
descended from the Traitorous Eight. The VCs won.

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.

Dumb (ie, advanced) economic theory assumes that there is only one
giant knob to turn, interest rate, and that it controls inflation.
That concept is stupid and cruel; economists love to slam that knob;
let\'s make unemployed another, say, 7 million working people to keep
our pals on Wall Street happy.

It was capitalist class struggle, to undermine the workers recent
advantages to negotiate wages.

Workers can always negotiate wages. Each one of us, employees or
employers, can shop around for the best deal.

https://www.amazon.com/Free-Choose-Statement-Milton-Friedman/dp/0156334607

We can also buy Chinese oscilloscopes.

 

[bitrex]

On 3/13/2023 10:55 AM, John Larkin wrote:

On Sun, 12 Mar 2023 07:04:35 -0700 (PDT), Ed Lee
edward.ming.lee@gmail.com> 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.

VCs need to be occasionally crushed to make the point that there is no
free money. Just step back and let them do that to themselves.

Silicon Valley had two literally parallel paths of evolution. Page
Mill Road had the constructive, patriotic, moral companies like HP and
Varian. Sand Hill road was the hangout of vulture capitalists
descended from the Traitorous Eight. The VCs won.


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.

Dumb (ie, advanced) economic theory assumes that there is only one
giant knob to turn, interest rate, and that it controls inflation.
That concept is stupid and cruel; economists love to slam that knob;
let\'s make unemployed another, say, 7 million working people to keep
our pals on Wall Street happy.

The Feds never let 2008 unwind properly, instead they pumped the better
part of 10 trillion into the banking system so The Ruling Class never
had to lose, and actually mostly made out on the crisis.

But the Feds painted itself into a corner in the process. However it
unwinds tho the Feds are unlikely to do bail-outs in the same fashion,
under the 2010 Dodds-Frank act \"bail-outs\" became \"bail-ins\", all bank
customers are now creditors of last resort and all the assets in bank
accounts will be seized to ensure there\'s an \"orderly resolution\" before
the federal government would ever supply a penny.

They want to stay out of the next 2008, or at least only be on the hook
to provide tanks, troops & firepower should anybody get uppity about
said forfeiture.

It was capitalist class struggle, to undermine the workers recent
advantages to negotiate wages.

Workers can always negotiate wages. Each one of us, employees or
employers, can shop around for the best deal.

Hah! Spoken like someone whose never had to \"negotiate wages\" in the
modern era. For 30 years you\'ve needed a BA and make it through three
rounds of interviews to answer phones and an associate\'s degree to
shovel shit for 20. Part of the reason The Ruling Class is freaking out
at this juncture is that for the first time in a while lots of people
really have been able to legitimately shop around.

There is at the very least for the moment no reason to stick around at
e.g. a restaurant or other service industry job paying $15/hr that
starts missing payroll \"We need to pull together for the good of the
team!\" Yeah, right, those employees are outta there the first time a
check bounces. Then the same small business owners start griping \"nobody
wants to work anymore..\"

https://www.amazon.com/Free-Choose-Statement-Milton-Friedman/dp/0156334607

We can also buy Chinese oscilloscopes.

 

[bitrex]

On 3/10/2023 7:18 PM, John Larkin 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?

So items can be priced at $9.99 instead of $10

 

[John Larkin]

On Mon, 13 Mar 2023 11:54:04 -0400, bitrex <user@example.net> wrote:

On 3/13/2023 10:55 AM, John Larkin wrote:
On Sun, 12 Mar 2023 07:04:35 -0700 (PDT), Ed Lee
edward.ming.lee@gmail.com> 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.

VCs need to be occasionally crushed to make the point that there is no
free money. Just step back and let them do that to themselves.

Silicon Valley had two literally parallel paths of evolution. Page
Mill Road had the constructive, patriotic, moral companies like HP and
Varian. Sand Hill road was the hangout of vulture capitalists
descended from the Traitorous Eight. The VCs won.


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.

Dumb (ie, advanced) economic theory assumes that there is only one
giant knob to turn, interest rate, and that it controls inflation.
That concept is stupid and cruel; economists love to slam that knob;
let\'s make unemployed another, say, 7 million working people to keep
our pals on Wall Street happy.

The Feds never let 2008 unwind properly, instead they pumped the better
part of 10 trillion into the banking system so The Ruling Class never
had to lose, and actually mostly made out on the crisis.

But the Feds painted itself into a corner in the process. However it
unwinds tho the Feds are unlikely to do bail-outs in the same fashion,
under the 2010 Dodds-Frank act \"bail-outs\" became \"bail-ins\", all bank
customers are now creditors of last resort and all the assets in bank
accounts will be seized to ensure there\'s an \"orderly resolution\" before
the federal government would ever supply a penny.

They want to stay out of the next 2008, or at least only be on the hook
to provide tanks, troops & firepower should anybody get uppity about
said forfeiture.



It was capitalist class struggle, to undermine the workers recent
advantages to negotiate wages.

Workers can always negotiate wages. Each one of us, employees or
employers, can shop around for the best deal.

Hah! Spoken like someone whose never had to \"negotiate wages\" in the
modern era.

I certainly have. The ultimate way to negotiate wages is to walk away
and get a better job, or start your own business.

For 30 years you\'ve needed a BA and make it through three
rounds of interviews to answer phones and an associate\'s degree to
shovel shit for 20.

One interview and a whiteboard is all an electronic designer needs. If
the interviewer doesn\'t get it, you don\'t want to work there.

Part of the reason The Ruling Class is freaking out
at this juncture is that for the first time in a while lots of people
really have been able to legitimately shop around.

We\'ve been able to do that for about the last hundred years, since
steetcars let us take jobs past walking distance from home. Affordable
transit changed employment and leisure both. The Internet expands the
concept of distance not dominating employment.

Do we have a Ruling Class? I mean, aside from government.

There is at the very least for the moment no reason to stick around at
e.g. a restaurant or other service industry job paying $15/hr that
starts missing payroll \"We need to pull together for the good of the
team!\" Yeah, right, those employees are outta there the first time a
check bounces. Then the same small business owners start griping \"nobody
wants to work anymore..\"

https://www.amazon.com/Free-Choose-Statement-Milton-Friedman/dp/0156334607

We can also buy Chinese oscilloscopes.

 

[bitrex]

On 3/12/2023 2:49 PM, Lamont Cranston wrote:

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

Lol @ boomers discovering just how much of their \"shrewd investing
strategies\" the past 25 years was actually just low interest rates.

Try making any serious dough with your prosperity gospel woo-woo
bullshit in a real market now, that\'s not high on dot com mania or
quantitative easing crack cocaine.

 

[Ed Lee]

On Monday, March 13, 2023 at 12:35:55 PM UTC-7, bitrex wrote:

On 3/12/2023 2:49 PM, Lamont Cranston wrote:
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
Lol @ boomers discovering just how much of their \"shrewd investing
strategies\" the past 25 years was actually just low interest rates.

Low rate and excess liquidity drive up stocks and properties to unreasonable values. When people run out of place to park their excess wealth, they spend money on stuffs at higher price (inflation).

Try making any serious dough with your prosperity gospel woo-woo
bullshit in a real market now, that\'s not high on dot com mania or
quantitative easing crack cocaine.

Fed had to finance QE with huge amount of 3% T-Bonds, which is worth around 50% with today\'s 6% rate. Guess who\'s holding these under-water T-bonds.

 

[John Larkin]

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.

Speaking of morons, see graph:

https://www.bankrate.com/banking/federal-reserve/history-of-federal-funds-rate/#1981

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