If SVB goes under, there will be a lot of Startups that can’t make payroll in the next month 😱
A lot of startups are prepared to not make payroll next month. They call that payroll.
Imagine being laid off then you land a job at a cool startup with a solid runway only to get fucked by SVB and the folks in strategic finance
Thats me!
I still don’t fully understand what happened even after reading several articles.
What happened? I am seeing a lot of posts related to SVB here.
That's just startup funding. Now think commercial real estates. Then the cascading effects. The coming collapse will make 2008 look like a walk in the park.
This the real reason for RTO
Too late anyway. The financial system is collapsing and nobody is talking about it. This means one thing. There is no solution this time. The Fed is forced to raise interest rates not because of the economy doing too well but because of war. WW3 is well under way. It is just not obvious to the plebs yet.
Broader market implications?
Makes sense bank stocks would see some impact, wonder how much was algorithm driven. Interesting times...wonder if I should revolt against RTO or count blessings I am employed hmm 🧐🤔
Very clear. Svb has super mega leverage in the form of hold to maturity mortgages that they cannot get rid of a single one or they’d have to write down the entire 30b portfolio which would lead them to insolvency. Not to mention the current ongoing run on their deposits which are likely 10x leveraged as allows by the fractional reserve banking system. Not to mention the numerous assets they hold that have taken a 50% haircut in the last two years. SVB will be the first domino to fall. Then everyone else. I’ve been waiting for this for over a year 🤑
What startups use Silicon Valley Bank? Do big ones like Stripe, Databricks, etc use them? This is concerning.
Anyone with speculative equity positions
Nope and it is concerning for wider tech industry
Lehman had 600B in assets. In 2023 dollars that’s 833B. SVB is/was 1/4th in assets
Market impact != asset valuation
Ya other banks are exposed to similar interest rate risks
J Powell is killing Biden’s presidency and he’s too senile to see it…
Should have never re-upped him. Non-econ Fed Chairs are awful.
Only a super positive CPI read next week can save us
Hold on…
I have my Wilson, tight!