Reply to Market Crash

Forum Index » Money and Finances

Reply to "Market Crash"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]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. [/quote]

It will clear out unsustainable businesses. Thin the herd. [/quote]

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.[/quote]

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.[/quote]

20% loss on treasury holdings. [/quote]

1% of their assets[/quote]

That’s what they lost yesterday.  About half their holdings were in long dated treasuries. So if rates continued to rise and they continued to liquidate to raise capital as VC starved startups spend their reserves, they would be at least 10% short.

That’s why they were trying raise more cash selling equity. [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics