Worried about SVB crash - worried if this is going to trigger a larger financial collapse
Just recover(ing) from a layoff and the SVB crash ; everyone is saying it’s going to be 2008 all over again or some larger crash , this is getting me worried a lot, since I’m about to move to a startup . Don’t want to get laid off again on a visa , this is just horrible . https://www.cnbc.com/2023/03/10/silicon-valley-bank-is-shut-down-by-regulators-fdic-to-protect-insured-deposits.html TC : 0 #tech #mentalhealth #recession
It is quite a disaster
Canary in a coal mine
It won’t. Banks are required to run through the theoretical test of a bank going bankrupt every year since 2011: https://www.federalreserve.gov/supervisionreg/stress-tests-capital-planning.htm This is considered a contingency scenario that has ample planning behind it
The system is built on confidence “full faith and credit in the United States”. Bank runs are scenarios of confidence. If people don’t feel “confident” in the overall banking sector, then yes OP - you should be scared.
Do you know how these stress tests work? It doesn’t appear like you do
Tech Startups screwed more. Banks are fine.
If a bank doesn’t get bailed out, it means “””they””” are planning to start a war in the coming years based on history pattern. I hope you still have your jobs by then
US default is the black swan as the BoA CEO warned last month. That comment didn't get enough attention.
It is unlikely that it will result in a major financial turmoil but will likely cause many startups to have short termed liquidity issues
I don’t think it will to be honest. The reason behind this is different than 2008.
1:1 comparison might not be good. 2021 extreme cheap rates and borrowing by all shitty R&D (crypto, AV) startups(that still burn cash) will have the same effects of unqualified mortgage borrowing .
Wait for more of these startups to declare bankruptcy, banks won’t get their money back… Run on Bank will happen