Having worked in finance and on Wall Street in 2000, 2008, and now 2023, I can say this time will be much worse. What is funny but sad is seeing all those on social media saying, “it won't be so bad.” Thirty public banks have halted stock trading as of today, and bank runs are only just beginning. I suspect companies will now use this as an excuse for massive, across-the-board layoffs well beyond with what has been seen. Most of the initial layoffs will target those making $100k or more per year. Banks will begin tightening credit to the point that mortgages and car loans will dry up, and most will continue to say, “it's not that bad” until they find themselves filing for unemployment. What always gets to me is those people who think, “it can't affect me,” only to find those are the hardest hit as they are least prepared mentally. I knew many people in 2008 with 7 figure portfolios who lost it all and today work a 9-5. Of course, my favorite part is those who've not been through any of the past collapses tell me why “this time isn't going to be as bad.” #finance #banks #svb #wallstreet
I can imagine it to be very very bad. You think they'll let it burn?
One can only hope
There is no “let.” The market ultimately dictates the direction, not the government. In 2008, to help free up the credit markets, the government introduced TARP over a weekend in the hopes banks would use the money to lend out and help Americans. The result? Banks kept the money on the sidelines to meet their cash obligations and used their reserves to buy up other assets, and banks and the American people got nothing. Banks ended up paying the money back early as it limited their bonuses and, as such, were able to make record payouts to executives. As in 2000 and 2008, more will change in the next two years than in the last 8. More wealth and innovation will be created in the next few years, but record poverty and downfall will impact an even more significant percentage of Americans. History repeats itself, and as the four times in the past, when the government tried to control inflation, unemployment always followed to the T. If you look at the numbers to get the numbers the feds want, six million people will need to be laid off. Millions more will be taken out just as a result. Going to get far worse before it gets better. Just look at history if you want the answers; the only difference is this time will happen much faster.
Jason xalacanis should absolutely be sued. He was calling for this over the weekend. Flunatic.
Hasn’t HSBC bought SVB for £1 and all the debts with it?
Only in UK
I thought FDIC took over both SVB and Signature
I own half of real estate in America I'll be fine
Miss a dose or two dozen of your Lithium, I see.
🤣
is there a source/list of these banks?
What’s your suggestion ? put money in GOLD, CD. How to be alive in this holocaust
I would like to know that too
CD is also at the bank. But US treasure bonds, bitcoin, if you don’t want cash at the bank. Unless you want to stash that much cash in your house.
Agree OP
Why would people lose their portfolio? Are you talking only about the cash deposits > 250K?
Do you think the massive drop in the financial sectors stock prices is a result of people selling at a massive gain? Countless reasons but start there.
Did your friends who lost their entire 7 figure portfolios sell everything they had in 2008? Was their entire portfolio Lehman Brothers stock? This is a bunch of nonsense
What are some recommended to-dos right now based on your hindsight?
Diversify your assets into multiple asset classes, maintain various streams of income, always be looking for the next stable job, reduce expenses heavily, everything from daily Starbucks to that gym membership, if you don’t need it to survive, you don’t need it, no matter how small, it adds up. Save as much as you can, don't add new expenses or debts, and don't be overly confident, no one is immune to a downfall. I hope this helps.
Cancel your gym membership. You are just full of good advice my friend.
Damm