Trump was instrumental in all of this. He started the ppp and all the covid relief. They're all snakes.

Damit… now we gotta listen about this in his next book “Woe is Me” pic.twitter.com/frcT0iXdi9

— Paul Faulk (@pnfaulk) March 11, 2023

Dan Scott said:

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If you're a big corporate, why aren't you banking with a bank designated too big to fail? Anybody for that matter

Big banks about to get bigger

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or at least spread out all your accounts to be a max of $300K

for the individual citizen, it's going to be pretty rare that you will ever have $250K sitting in a cash bank account unless you are a business owner.

but it's pretty great advice:

1. Don't keep your crypto on an exchange but transfer it to a cold wallet
2. don't keep more than $250,000 in an FDIC approved bank

I'd also like to see companies disclose in their 10K who they are banking with. Shareholders should know if their money is being held at risky banks.

CM Trump Voter said:

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Trump was instrumental in all of this. He started the ppp and all the covid relief. They're all snakes.

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agreed, his actual fiscal policy was not conservative but populist

adding trillions to the debt and saddling us with very bad COVID policies including the PPP, the bailouts and payouts which then the leftists cranked to 100.

Dan Scott said:

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I'd also like to see companies disclose in their 10K who they are banking with. Shareholders should know if their money is being held at risky banks.

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the problem is that "no one" thought that SVB was a risky bank

annie88 said:

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ChiefKiefton said:

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Would this affect banks like Wells Fargo? My account went to zero this morning and it seems to be happening to a lot of people.

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WTF?

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Oh.

Biden was the last straw to fall. I'm really starting but this wef stuff (more than I was)

HumpitPuryear said:

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Too many important liberals are crying thus the fed is going to be all in on trying to bail in and limit the damage. That's not hard to predict. I don't pretend to know enough to predict if they will successfully stop the bleeding though. It might be a great time to buy the bank stocks that got hammered on Friday, or not. Your welcome.

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I bought a lot of major big bank stocks late Friday afternoon

because if THEY all collapse- the only thing that will matter is:

how much ammo you have

how much arable land you have

I have accounts with several banks...personal and business.

They all have issues. If I'm looking for a 'clean' bank...I'd be sticking cash under my mattress.

I've never used Wells Fargo.

30 years ago they were a client of a PR firm where I worked.

Interesting stat I read, besides the previous 2 years, only 2005 is the other year there was not a bank failure in the United States.

bmks270 said:

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Stat Monitor Repairman said:

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So what happens on Monday?

Predictions?

What's the trickle down. What don't we know about?

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Monday people get bridge capital lined up. By the end of the week I think SVB depositors have enough of their funds accessible to make it through to the end of the FDIC process and get the rest of their funds in a few weeks. If SVB asset sales aren't enough to make depositors whole I do think the government will fund the difference or the accounts get sold/assigned to another bank who can take meet deposit withdrawals.

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Thats textbook, and you might be right. That would be ideal,

I think you got a bunch of people on Monday trying to look at their exposure.

Presumably most people in finance and accounting are thinking about these types of issues, but probably not.

What to do in the even of a bank failure probably wasn't on the top of these folks to-do list. This is one of those things you think about in theory as opposed to a risk you are gonna have to deal with one day.

Some people are gonna show up at work on Monday completely hamstrung. Blindsided buy a bunch of questions they ain't event thought of. On the flip side, there's also people losing sleep over this right now.

I guess the question everybody is asking is; will there be a panic ... or won't there be a panic?

And if there is a panic, ... how bad will it be?

Will additional cracks in the system get exposed?

We'll have a better feel for it on Sunday afternoon. If we see signs of the media pumping panic on Sunday afternoon, then I think we got a problem,. So we'll see.

Bitcoin isn't collapsing and the weekend Wallstreet index as the DOW up 100 right now.

These clowns will bailout everything right now until the country is bankrupt and insolvent.

jt2hunt said:

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until the country is bankrupt and insolvent.

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we are past that point.

we're just shuffling chairs on deck.

pretty much

annie88 said:

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ChiefKiefton said:

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Would this affect banks like Wells Fargo? My account went to zero this morning and it seems to be happening to a lot of people.

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WTF?

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Overhead somebody at dinner talking about missing money out of a Wells Fargo account.

Dan Scott said:

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Big banks about to get bigger

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I think that's what's probably about to happen.

Businesses flock to the too-big-to-fail banks.

And this causes a crisis in-and-of itself.

time to buy some big bank stock.....

LMCane said:

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Dan Scott said:

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I'd also like to see companies disclose in their 10K who they are banking with. Shareholders should know if their money is being held at risky banks.

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the problem is that "no one" thought that SVB was a risky bank

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Except the insiders that sold shares before the crash.

Worst case scenario is that a panic spills over into the general populous.

Random people start showing up at their bank withdrawing cash. 'just in case.'

There's not enough cash in circulation. So if a significant number of people start doing this, they'll have to limit withdrawals.

Withdrawal limits will cause further panic. You gonna have a JG Wentworth situation. 'its my money and I want it now!' People with no real need for cash show up and start demanding cash.

How's that gonna play out on social media? ... We saw what happened during covid. People go bat **** crazy.

ATMs go dry and they can't be restocked in a timely manner due to lack of paper currency causing even more panic.

The MSM could easily create a panic. The media got a tremendous amount of power here. Social media got a tremendous amount of power here. A couple of viral videos could trigger a panic.

Anything could happen, but that's worst case scenario.

Does that make the case for 100% digital currency?

Doesn't take much. We had a run on gas here in Dallas a few years ago when Houston got hit with weather. Gas stations were running out of gas and the weather never even impacted us. Complete panic driven shortage.

idiots already on twitter asking "who is hitting the bank first thing Monday".

Dan Scott said:

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Does that make the case for 100% digital currency?

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yes, but not in the way you're thinking

C@LAg said:

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idiots already on twitter asking "who is hitting the bank first thing Monday".

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are they idiots? there is more than $22T in the US banking system and the FDIC has about $125B in assets and another $100B in credit from the treasury. you feeling confident that the money you have in the bank is real? now imagine you have 100x or 1000x that much in a bank.

All this could result in businesses and individuals scrambling to buy up tangible assets.

Which would result in higher prices on durable goods.

Wages continue lag behind inflation.

Lower middle class and middle class start to feel the squeeze.

People start to panic.

Panic begets more panic.

People stop spending money.

The economy stagnates out of fear.

Economic gridlock.

Once that happens it'll be real slow to get things moving again.

Keep your powder dry if you have it and be prepared to do some buying… or lending.

Regarding banks and having at risk positions. They make folks whose living it is to watch out for where you money is and in the case of cash where that. Money is "banked".

For business purposes, I will keep over the FDIC limit from time to time. But I try and hedge that with a line of credit with same bank.

But back on SVB… I do not think I will be shedding any tears for customer balances that may not be fully honored.

I mean, you did choose to bank with "Silicon Valley Bank"…

no one has posted in the last hour....

We'll this thread has derailed nicely

Barnes has posted about a page of nonsense TDS rants

& now the Bitcoin bot is spamming away

Good Bull!

I wouldn't go so far as to say that a lot of companies didn't have a choice but to bank with SVB, but for an asset-light recurring revenue business there weren't a lot of options for credit. Generally, the SVB credit agreements required banking exclusivity. I haven't done the research on it, but my bet would be that a credit facility was behind Roku having close to $500MM there in a deposit account.

Janet Yellen came out and said the Feds will not be bailing out SVB. Rumor is another bank will acquire them. Maria B expects a sell off tmrw on the stock exchange.

I am just glad we have someone has competent as Yellen and her boss Biden, somewhat of a banking industry expert himself, in leadership through this banking crisis.

That should make everyone rest easier.