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If You’re Paying Attention, Biden Just Told Us How Democrats Plan to Rig & Steal 2024 Election.
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Newborn born today, already struggling with sleep
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Is this enough weight for bench press
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Change my mind: skydiving is the pumpkin spice latte of ‘living your life to the fullest’
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I ruined my life
I have no idea why it’s down 60% and banks got killed
Banks keep lot of cash in bonds. Due to rising rates, banks are sitting on unrealized losses on bonds which is ok as long as banks can hold them to maturity. Problem with SVB is that incoming deposits are not coming (mostly VC drought) and they need to sell bonds at loss for cash withdrawal requests.
And Peter Thiel told the start ups he invested in to withdraw their money from them? 😆 GREAT
Something with 🇨🇳? They had dealings there.
What startups use Silicon Valley Bank? Do big ones like Stripe, Databricks, etc use them? This is concerning.
Rising interest rates creates a condition where bonds held by SVB are taking on paper losses. Customers mainly startups and are burning up cash so they need to withdraw deposits, forcing SVB to sell bonds at realized loss to meet withdrawal obligations. People panic and pull out more money, making things worse.
Silicon valley Bank's primary depositors are vc's and other start ups. Cash burn is quite high for them which in turn results in deposit drops for thr bank. And other reason Bank held alot of mbs which has gone bust, resulting in unrealized loss until they start selling which they have to do to maintain cash deposite levels. They are unable to raise new capital is another problem. Banks have to continuously keep raising capital.