Silicon Valley Bank collapse (among others), more than just a small private bank collapses and has implications for tech and media.

FAST6191 · Mar 31, 2023

Jayro said:
Every time a bank fails, things just end up benefiting actual people. We need more of this please, and on a larger scale.

If everybody pulled 20% of their money out of a bank it would be done (see fractional reserve), everybody pulls 100% out to stick in some money market account making 6% or whatever (compared to the basically 0 of most consumer stuff) or cash under the mattress and actually does not need to be everybody but will go that much faster.
There are ways you could further increase their pain as well but those will cost you, especially with interest rates being what they are and probably impact your credit score.
Equally on "but up to 250000 is insured" then yeah and ignoring that it does not have the funds to do much if many more do go pop then have you ever dealt with an insurance company? Moreover you have presumably also dealt with government bureaucracy and when their powers combine...

They are very aware of this as well so are looking to prevent that

You might then have to get a bit creative with your approaches to get money out.

Seems SVB had a lot of warning signs a month before the deed (as well as far further back than that) with it being played down so those truly in the know could get it sorted.

Anyway it is spreading to other banks still so people are looking for the second wave to happen. Been waiting to see what will happen before making another post but Charles Schwab is high on the list

https://uk.news.yahoo.com/charles-schwab-stock-declines-morgan-134700704.html

More fun beyond headlines which seem to opt for best case scenario

Foxi4 · Mar 31, 2023

Jayro said:
Every time a bank fails, things just end up benefiting actual people. We need more of this please, and on a larger scale.

…what are you talking about? People are at risk of losing their life savings (including retirement) and even in the scenario of a bank surviving/off-loading their debt on the government, the hole is patched with tax money that could’ve been spent on something better. A bank failure is a nightmare scenario.

FAST6191 · Mar 31, 2023

Foxi4 said:
…what are you talking about? People are at risk of losing their life savings (including retirement) and even in the scenario of a bank surviving/off-loading their debt on the government, the hole is patched with tax money that could’ve been spent on something better. A bank failure is a nightmare scenario.

While I teeter towards the "some men want to watch the world burn" side of the spectrum I would take a slightly different tack here.

All this fractional reserve (money printing by any other name) stuff might have been like steroids for the economy the decades of abuse of it are now coming due. If this can plonk us back into something sensible where sure there might be an issue but chances are not really as 80% is in as good as cash assets then yeah. Watching the really early stuff where you might look at your bank, figure out which one trains its people, interfaces with the community (granted computers are better than classical bank managers), upgrades its buildings and such rather than being a flash in the pan money funnel/extraction operation that might tease you with a silly rate like all those "stablecoins".

Now the small local banks acting as loan origination (more money printing courtesy of the fractional reserve aspect) to be bundled up (how is that auto loan thing coming by the way, for those unaware the next great debt bubble probably won't be housing or commercial real estate, though they are not so far away, but actually car loans and made even worse with those using stimmy cheques as downpayments on massively overpriced things) for the big boys is an interesting one in this current debate.

Likewise there is going to be a crash. Is tomorrow better than 6 months from now (though best would probably have been back when kung flu was set to pop, it having been given CPR for several years now and recession being technically avoided by propaganda and money printing for that nice Ukraine proxy war with China, presumably as it is the ticket for the next election)?

Foxi4 · Mar 31, 2023

FAST6191 said:
While I teeter towards the "some men want to watch the world burn" side of the spectrum I would take a slightly different tack here.

All this fractional reserve (money printing by any other name) stuff might have been like steroids for the economy the decades of abuse of it are now coming due. If this can plonk us back into something sensible where sure there might be an issue but chances are not really as 80% is in as good as cash assets then yeah. Watching the really early stuff where you might look at your bank, figure out which one trains its people, interfaces with the community (granted computers are better than classical bank managers), upgrades its buildings and such rather than being a flash in the pan money funnel/extraction operation that might tease you with a silly rate like all those "stablecoins".

Now the small local banks acting as loan origination (more money printing courtesy of the fractional reserve aspect) to be bundled up (how is that auto loan thing coming by the way, for those unaware the next great debt bubble probably won't be housing or commercial real estate, though they are not so far away, but actually car loans and made even worse with those using stimmy cheques as downpayments on massively overpriced things) for the big boys is an interesting one in this current debate.

Likewise there is going to be a crash. Is tomorrow better than 6 months from now (though best would probably have been back when kung flu was set to pop, it having been given CPR for several years now and recession being technically avoided by propaganda and money printing for that nice Ukraine proxy war with China, presumably as it is the ticket for the next election)?

My point is that celebrating a bank collapse is silly when the bank is not playing games with its own money - this is all about using Monopoly money that represent people’s assets. It’s no different than celebrating that a child burnt its fingers playing with matches. Admittedly, it is funny when a kid is getting hoisted by their own petard, however it’s significantly less funny when they’re doing it next to an open barrel of gasoline and inside your living room.

FAST6191 · Mar 31, 2023

Foxi4 said:
My point is that celebrating a bank collapse is silly when the bank is not playing games with its own money - this is all about using Monopoly money that represent people’s assets. It’s no different than celebrating that a child burnt its fingers playing with matches. Admittedly, it is funny when a kid is getting hoisted by their own petard, however it’s significantly less funny when they’re doing it next to an open barrel of gasoline and inside your living room.

Who are you and what have you done with the far more Darwinistic Foxi4 of previous years? Though yeah nobody involved at high levels for anything here will likely do any time (or equivalent, much less in something other than a minimum security country club) or suffer a career setback that will actually hurt at a real* level (oh no I am in a private bank that saw I worked for a big one, paid fortunes by some stupid charity and now earn only 100000 (or inflation adjusted equivalent) where living wage is a fraction of that) compared to a builder that just fucked his back up or something.

*I have seen the studies on the normalisation of wealth and rich kid syndrome, and have been enjoying almost uncomfortable levels of schadenfreude at the "my day as a non tech ~~worker~~ parasite in a tech company... I have had all inclusive holidays with less perks than this" types that have been slammed into the real world by the recent layoffs.

Maybe China was right with its execution of wayward politicos and business wonks...

Foxi4 · Mar 31, 2023

FAST6191 said:
Who are you and what have you done with the far more Darwinistic Foxi4 of previous years? Though yeah nobody involved at high levels for anything here will likely do any time (or equivalent, much less in something other than a minimum security country club) or suffer a career setback that will actually hurt at a real* level (oh no I am in a private bank that saw I worked for a big one, paid fortunes by some stupid charity and now earn only 100000 (or inflation adjusted equivalent) where living wage is a fraction of that) compared to a builder that just fucked his back up or something.

*I have seen the studies on the normalisation of wealth and rich kid syndrome, and have been enjoying almost uncomfortable levels of schadenfreude at the "my day as a non tech ~~worker~~ parasite in a tech company... I have had all inclusive holidays with less perks than this" types that have been slammed into the real world by the recent layoffs.

Maybe China was right with its execution of wayward politicos and business wonks...

Oh, don’t worry - I have no qualms about separating idiots from their money, that wasn’t exactly the point.

Silicon Valley Bank collapse (among others), more than just a small private bank collapses and has implications for tech and media.

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