Market Crash

[Anonymous]

https://www.nytimes.com/2023/03/10/business/silicon-valley-bank-stock.html

[Anonymous]

Anonymous wrote:SVB is not just a west coast problem. I’ve worked with 10 tech companies in the DC region and all use SVB. This is going to be detrimental to so many that don’t get a paycheck next week.

It will clear out unsustainable businesses. Thin the herd.

[Anonymous]

Anonymous wrote:

Anonymous wrote:SVB is not just a west coast problem. I’ve worked with 10 tech companies in the DC region and all use SVB. This is going to be detrimental to so many that don’t get a paycheck next week.

It will clear out unsustainable businesses. Thin the herd.

I mean, FDIC took over the bank. Funds shouldn’t be inaccessible unless accounts were above FDIC limits, which is the account holder’s fault.

[Anonymous]

Wait, what's that? Over there. Is it a black swan?!

[Anonymous]

Anonymous wrote:Wait, what's that? Over there. Is it a black swan?!

It aint a black swan if it just happened on a massive scale 12 years ago.

[Anonymous]

Time for all those startups to crack open “Lean Startup” and stretch $250k for a while.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:SVB is not just a west coast problem. I’ve worked with 10 tech companies in the DC region and all use SVB. This is going to be detrimental to so many that don’t get a paycheck next week.

It will clear out unsustainable businesses. Thin the herd.

I mean, FDIC took over the bank. Funds shouldn’t be inaccessible unless accounts were above FDIC limits, which is the account holder’s fault.

Do most multi-million businesses spread their accounts across dozens to hundreds of banks to stay below FDIC limits?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:SVB is not just a west coast problem. I’ve worked with 10 tech companies in the DC region and all use SVB. This is going to be detrimental to so many that don’t get a paycheck next week.

It will clear out unsustainable businesses. Thin the herd.

I mean, FDIC took over the bank. Funds shouldn’t be inaccessible unless accounts were above FDIC limits, which is the account holder’s fault.

Do most multi-million businesses spread their accounts across dozens to hundreds of banks to stay below FDIC limits?

There are deposit custody services that will do this for you. They'll even seek out highest yielding banks and shift around.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:SVB is not just a west coast problem. I’ve worked with 10 tech companies in the DC region and all use SVB. This is going to be detrimental to so many that don’t get a paycheck next week.

It will clear out unsustainable businesses. Thin the herd.

I mean, FDIC took over the bank. Funds shouldn’t be inaccessible unless accounts were above FDIC limits, which is the account holder’s fault.

Do most multi-million businesses spread their accounts across dozens to hundreds of banks to stay below FDIC limits?

PP obviously has never thought through the cash flow realities of running a business with employees.

[Anonymous]

Anonymous wrote:

Anonymous wrote:SVB is not just a west coast problem. I’ve worked with 10 tech companies in the DC region and all use SVB. This is going to be detrimental to so many that don’t get a paycheck next week.

It will clear out unsustainable businesses. Thin the herd.

DP: A lot of these are great sustainable businesses--you need to have a lot of cashflow for a start-up. The problem is with the bank, not the quality or payback of loans.

[Anonymous]

Biden’s donors are NOT losing money here.

All deposits will be backed “to prevent contagion.”

[Anonymous]

Anonymous wrote:Biden’s donors are NOT losing money here.

All deposits will be backed “to prevent contagion.”

Or, y’know, they’re backed because that’s what the FDIC is for.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:SVB is not just a west coast problem. I’ve worked with 10 tech companies in the DC region and all use SVB. This is going to be detrimental to so many that don’t get a paycheck next week.

It will clear out unsustainable businesses. Thin the herd.

DP: A lot of these are great sustainable businesses--you need to have a lot of cashflow for a start-up. The problem is with the bank, not the quality or payback of loans.

What is the problem with the bank? That they didn’t hedge their treasury investment and had to take 1% loss? It is not a big deal, they must be holding 10% reserves for that. But if the heard panics there is no stopping it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Biden’s donors are NOT losing money here.

All deposits will be backed “to prevent contagion.”

Or, y’know, they’re backed because that’s what the FDIC is for.

Actually that’s not what FDIC is for.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:SVB is not just a west coast problem. I’ve worked with 10 tech companies in the DC region and all use SVB. This is going to be detrimental to so many that don’t get a paycheck next week.

It will clear out unsustainable businesses. Thin the herd.

DP: A lot of these are great sustainable businesses--you need to have a lot of cashflow for a start-up. The problem is with the bank, not the quality or payback of loans.

What is the problem with the bank? That they didn’t hedge their treasury investment and had to take 1% loss? It is not a big deal, they must be holding 10% reserves for that. But if the heard panics there is no stopping it.

20% loss on treasury holdings.