SVB Failed! Silicon Valley Bank.

[CB750F]

Yeah, it was a rhetorical question. lol

To me crypto is just a play. Look like the Gmen will be giving the crypto boys a hard time.
& were green now, all is fixed I guess.

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[TXRangerTim]

A coalition of large banks have decided to help First Republic Bank by putting in $30B. FRC stock is now up over 16%.

 

[TJC]

Why? Are banks now altruistic?

My humble opinion...

The FED can put an end to inflation anytime they want, but they don't want that.

You can't stop inflation by raising interest rates then injecting $2 trillion dollars into the banks. It's all for show.

The goal is to consolidate banks then drop the CBDC hammer on America.

It's coming. I wish it wasn't, but it's coming.

 

[dtech]

I never comment regards crypto - it's way above my ability of comprehension. I do know a couple of people that took heavy losses investing in it , one 1.5 yrs back was bragging how much money he was making. Anything that takes that much power to produce makes me suspicious that it's another play by utility companies.

We'll see how the Fed proceeds next week with respect to rate increases - does anybody really know how much exposure the banking system has to rising interest rates ? I have way more confidence in the banks than I do in the Fed.

 

[TXRangerTim]

I'm sure there are ulterior motives in the background. FRC only has a value of $6B.

 

[dtech]

I'm sure there are ulterior motives in the background. FRC only has a value of $6B.

Brothers in arms, more failures or potential failures = more investigations, more focus on the banking industry and their practices/investments and the likelihood of more regulations - and we all know they love regulations.

 

[TJC]

I never comment regards crypto - it's way above my ability of comprehension. I do know a couple of people that took heavy losses investing in it , one 1.5 yrs back was bragging how much money he was making. Anything that takes that much power to produce makes me suspicious that it's another play by utility companies.

We'll see how the Fed proceeds next week with respect to rate increases - does anybody really know how much exposure the banking system has to rising interest rates ? I have way more confidence in the banks than I do in the Fed.

The Fed has the ace in the hole. They create money out of thin air and then loan it to the US government, who then pays them interest on the loan. It's a great gig if you can get it!

"Honest" Money no longer exists.

There once was a time when dollars were nothing more than receipts for the gold and silver you had stored in a bank. It is difficult to print gold and silver. Not so much paper. Even less in virtual currency.

 

[TJC]

 

[TJC]

Well, this didn't take long at all ! Follow the link to read the entire article.

The Federal Reserve Announces Its First Big Step Towards a Digital Dollar

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The Federal Reserve Bank of the United States has announced that it is launching an instant payment transfer service called “FedNow Service,” which has features of a Central Bank Digital Currency (CBDC) and some analysts believe is the first big step towards a “digital dollar.”
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“We couldn’t be more excited about the forthcoming FedNow launch, which will enable every participating financial institution, the smallest to the largest and from all corners of the country, to offer a modern instant payment solution,” said Ken Montgomery, first vice president of the Federal Reserve Bank of Boston and FedNow program executive. “With the launch drawing near, we urge financial institutions and their industry partners to move full steam ahead with preparations to join the FedNow Service.”
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“With the FedNow Service, the Federal Reserve is creating a leading-edge payments system that is resilient, adaptive, and accessible,” said Tom Barkin, president of the Federal Reserve Bank of Richmond and FedNow Program executive sponsor. “The launch reflects an important milestone in the journey to help financial institutions serve customer needs for instant payments to better support nearly every aspect of our economy.”
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As noted by Steve Kaaru of CoinGeek, FedNow has been in the works since 2019 and is “touted to be the fastest way to make payments by financial institutions in the U.S. around the clock, every day of the year. Banks, payment services, and individual users will receive and have instant access to payments made through the service.”

 

[Synfulz]

I never comment regards crypto - it's way above my ability of comprehension. I do know a couple of people that took heavy losses investing in it , one 1.5 yrs back was bragging how much money he was making. Anything that takes that much power to produce makes me suspicious that it's another play by utility companies.

We'll see how the Fed proceeds next week with respect to rate increases - does anybody really know how much exposure the banking system has to rising interest rates ? I have way more confidence in the banks than I do in the Fed.

In regards to power consumption that is doing blockchain processing to mine Bitcoin for example. They set up huge server farms to do the hash rate calculations for transaction processing. These farms use huge amounts of power. Most of your basic cryptos can be created and managed through the communities laptops or phones. I used to forge crypto through my laptop. All in all I am ahead on my investments. I haven't been lucky enough for the insane percentage gains. I am holding quite a few hoping for one of those crazy gains, if so quick cash out.

 

[AzScorpion]

And just like that Bank of America received 15 Billion in new deposits in a matter of days. Some are panicking and transferring their money to these larger banks that are "to big to fail". Pretty soon these larger banks will control all the wealth if people are not careful. If they just did their homework they'd find that Credit Unions are usually much more safer. They're non profit and owned by the members (not investors like banks) and have much lower fees. I haven't used a bank for over 20 years except for my business account. These were held at small local banks (1-3 branches) which had tighter guidelines. I know nothing is foolproof and not long ago SVB had an A+ rating.

https://www.spokesman.com/stories/2...har Natarajan and Katherine Doherty Bloomberg

Bank of America mopped up more than $15 billion in new deposits in a matter of days, emerging as one of the big winners after the collapse of three smaller banks dented confidence in the safety of regional lenders.

The inflows offer a first glimpse into the deluge of deposits that made its way to the country’s largest banks as customers fearful of a spreading crisis sought refuge in the firms seen as too big to fail. The money flowing into the second-largest U.S. bank was described by people with direct knowledge of the matter, who asked not to be identified as the information isn’t public.

Other banks like JPMorgan Chase, Citigroup and Wells Fargo also raked in billions in new deposits, though the figures have not been disclosed yet.

 

[Fordup]

And just like that Bank of America received 15 Billion in new deposits in a matter of days. Some are panicking and transferring their money to these larger banks that are "to big to fail". Pretty soon these larger banks will control all the wealth if people are not careful. If they just did their homework they'd find that Credit Unions are usually much more safer. They're non profit and owned by the members (not investors like banks) and have much lower fees. I haven't used a bank for over 20 years except for my business account. These were held at small local banks (1-3 branches) which had tighter guidelines. I know nothing is foolproof and not long ago SVB had an A+ rating.

https://www.spokesman.com/stories/2023/mar/15/bank-of-america-gets-over-15-billion-in-deposits-a/#:~:text=Bank of America gets over $15 billion in,Moon/Bloomberg) By Sridhar Natarajan and Katherine Doherty Bloomberg

I think that is a drop in the bucket compared to the cash withdrawals the last couple days.

 

[AzScorpion]

I think that is a drop in the bucket compared to the cash withdrawals the last couple days.

You're right Ed. On the Fidelity site there was a large amount of really good 5%+ CD's earlier this week by many different banks. My guess is they had a run of withdrawals and needed to shore up some long term capital. These weren't small amounts either they were in the tens of millions, each one has the amount of shares available next to it. Every time one would become available it would sell out quickly then a few more would pop back up, sometimes from the same bank. People are also trying to to get these great long term rates because we haven't seen them in a long time.

 

[dtech]

Seems like the gov acted appropriately in forestalling a run on the smaller banks and a crisis confidence in the US banking system, can't blame investors from pulling out of smaller banks. US dollar has remained strong and confidence in the US stability allowing debt to be sold, albeit rising interests rates costs more to service the debt. A full blown banking crisis would come at a bad time given the debt ceiling wrangling with possible default . And we will likely see a more moderate move by the Fed - there is already increasing downward pressure in prices in many sectors, and I see the stock market is back to it's swinging to and fro, have to believe a lot of investors are seeking safe havens in treasury notes and other fixed income instruments - I am.
But the US needs to stop it's reliance on deficit spending, it's unsustainable.

 

[AzScorpion]

Seems like the gov acted appropriately in forestalling a run on the smaller banks and a crisis confidence in the US banking system, can't blame investors from pulling out of smaller banks. US dollar has remained strong and confidence in the US stability allowing debt to be sold, albeit rising interests rates costs more to service the debt. A full blown banking crisis would come at a bad time given the debt ceiling wrangling with possible default . And we will likely see a more moderate move by the Fed - there is already increasing downward pressure in prices in many sectors, and I see the stock market is back to it's swinging to and fro, have to believe a lot of investors are seeking safe havens in treasury notes and other fixed income instruments - I am.
But the US needs to stop it's reliance on deficit spending, it's unsustainable.

Actually the time to buy treasuries was before the SVB collapse. That's why there was such a run on CD's this week because they were paying more than T bills and for longer terms. The 5 year Treasury today is only at 3.72% down from 4.16 last month. With 5 year CD's paying 5% and I even saw a few at 5.25% people were scooping these up as fast as they became available.

https://www.barchart.com/economy/interest-rates

As far as big banks go some find comfort in them but I never did. Everyones comfort level is different and I always say do what makes YOU sleep better at night. Credit Unions are my go to and always will be.

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