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Banking shares COLLAPSE - Is it happening?


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HOLA441
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HOLA447

I think some on here need to do a bit more research before predicting the end of the world.

SVB were a complete basket case in the banking world and 95% of the banking industry are completely free of their nonsense business plan. Could be a bit of contagion with a couple more local banks in US but it’s a limited situation. Certainly not a black swan.

Biggest issue is anyone even remotely connected to fintech and crypto could be seriously messed up. These guys were the key lender for them and there will be some serious pain in that area.

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2 hours ago, NoHPCinTheUK said:

Janet Yellen: “Let me be clear that during the financial crisis, there were investors and owners of systemic large banks that were bailed out... and the reforms that have been put in place means we are not going to do that again”

 

'Bailout' confirmed .... or more accurately, 'Bail-in' confirmed.

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2 hours ago, NoHPCinTheUK said:

Janet Yellen: “Let me be clear that during the financial crisis, there were investors and owners of systemic large banks that were bailed out... and the reforms that have been put in place means we are not going to do that again”

Yeh but what difference does it make?

They will end up bailing out depositors above the limits here and in the US.

 

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2 hours ago, Huggy said:

I know. There are a few more people who I hope had money tied up here. It seems the most progressive bank of them all :lol:

Pretty funny isn't it. They got all the woke Californians to put their money in a single bank and then they ran it into the ground and all went broke.

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50 minutes ago, PalmerEldritch said:

I think some on here need to do a bit more research before predicting the end of the world.

SVB were a complete basket case in the banking world and 95% of the banking industry are completely free of their nonsense business plan. Could be a bit of contagion with a couple more local banks in US but it’s a limited situation. Certainly not a black swan.

Biggest issue is anyone even remotely connected to fintech and crypto could be seriously messed up. These guys were the key lender for them and there will be some serious pain in that area.

I agree.

But I also think this is an indication of how many businesses and financial institutions could be in trouble due to IRs rising and QE being reversed, 

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4 hours ago, henry the king said:

That might be fine in the short term, but longer term society cannot survive with that philosophy. People working 8 hours a day to get £30k whilst others get £30k in a minute for an Instagram post is not sustainable. 

It is sustainable the people getting £30k in a minute get it from a high number of those on £30K a year all paying a few £ each to a tick tock or Instagram account. 

There are 70 million people in this country and billions world wide , the number of people on the very high number is minuscular in comparison. Now if a few million people in the UK were on £30k a minute then that would be unsustainable. 

 

 

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7 minutes ago, henry the king said:

I agree.

But I also think this is an indication of how many businesses and financial institutions could be in trouble due to IRs rising and QE being reversed, 

For sure, the entire financial ecosystem has to come to terms with the new normal (which is just the historical normal) rather than 0.5% IR.

Biggest losers are clearly the over indebted and idiots who didn’t hedge risk. Going to be a wild ride next 2-3 years. This shit is just starting…

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5 hours ago, Wampus Cat said:

Looks like the SVB 'Risk Manager' wasn't spending much time managing risk. :o

Come on at least she ticked the right boxes which is the most important requisite. 

Was she doing this job full time as she looks young enough to still be at college? 

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On 10/03/2023 at 22:53, Warlord said:

The schemes have never been fully tested @Ah-so

Closest they came was in 2008 I guess where they gov't bailed the whole system out to the tune of £800billion and managed to sweep it all under the rug.  That won't be happening this time.

We've never seen anything like this before. The amount of debt, money creation and potential for a complete meltdown that makes '08 look small .

I'd like to see how your beloved system/scheme acts under those circumstances. My guess it won't go well.

A central bank can always find the money for bailouts, although the act of finding it may of course devalue that money. 

 

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2 minutes ago, Confusion of VIs said:

A central bank can always find the money for bailouts, although the act of finding it may of course devalue that money. 

 

May? You mean will.

They would have to print the money .They dont have any. So yeah, they'll cause hyper-inflation. 

 

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8 minutes ago, Orb said:

I can't understand queues at banks and ATMs. Wouldn't it be easier to go online and move their money into safer assets? Or are these just average Joes taking out their last few hundred? 

I think America has quite primitive banking technologies. Online banking not so prevalent there? You still often have to sign paper to use a credit card!

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29 minutes ago, Insane said:

Come on at least she ticked the right boxes which is the most important requisite. 

Was she doing this job full time as she looks young enough to still be at college? 

She spent a lot of her time on LGBTQ programmes but none of them seemed to involve much time looking after her LGBTQ customers money.

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6 hours ago, msi said:

From what I'm told, there are 2 issues coming out - both have wider impacts.

1) There is a list of UK Tech companies directly affected. I'm not mentioning names as this info is 2nd hand.  The companies and their backers are running around to ensure they don't have to reach for any emergency funding that would put the companies at risk or dilute existing equity stakes. 

2) UK VC funds are trying to make it look like it's all good with them. The problem is regulators on both sides want a more accurate appraisal so they can put a line on any formal 'support' needed (Yes, I'm raging that Governments and CBs already have the chequebook out).  The VCs are stuck as they want the extra cash but don't want to admit to suffering losses as this starts contagion as others then have to crystalise losses. (IMO that would then trigger more cheques)

Looks like my sources were spot on....

Janet Yellen confirms help for SVB depositors but dismisses bailout

UK prepares cash lifeline for tech companies hit by Silicon Valley Bank collapse

UK scrambles to help tech firms after Silicon Valley Bank collapse

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1 hour ago, PalmerEldritch said:

For sure, the entire financial ecosystem has to come to terms with the new normal (which is just the historical normal) rather than 0.5% IR.

Biggest losers are clearly the over indebted and idiots who didn’t hedge risk. Going to be a wild ride next 2-3 years. This shit is just starting…

I've been predicting a bottom up crisis this time, where businees cannot refinance and go under which then transitions to wider economic issues

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