We got a bank collapse y'all
- Thread starter garbagemanlb
- Start date
gimpshiznit
Totally not Larry
- Sep 16, 2003
- 52,942
ghost.prawn
OT Supporter
- May 11, 2006
- 52,739
NULL_bits
OT Supporter
- Feb 10, 2021
- 1,320
I'm kinda dumb with this kind of stuff. I understand the basic issue (I think) - SVB was backed primarily by government bonds which are generally seen as very low risk, but because interest rates have been rising and SVB's accounts were high risk accounts (primarily tech startups which fail constantly), it was a recipe for disaster.
What I don't quite understand is why this would cause a domino effect and create this widespread panic around a more systemic failure. It seems like SVB's situation is kinda unique, is it just because any sort of bank failure spooks the beast and people start acting all retarded?
Sorry, again, I'm just a paint-by-numbers coder who will be replaced by GPT in the next couple years so I don't understand this shit very well.
What I don't quite understand is why this would cause a domino effect and create this widespread panic around a more systemic failure. It seems like SVB's situation is kinda unique, is it just because any sort of bank failure spooks the beast and people start acting all retarded?
Sorry, again, I'm just a paint-by-numbers coder who will be replaced by GPT in the next couple years so I don't understand this shit very well.
Boing
OT Supporter
- Jun 30, 2007
- 66,752
TS
TS
garbagemanlb
OT Supporter
Do you understand how fucking stupid the average american is? Hundreds of thousands of hogs died of an avoidable disease by refusing covid vaccination. We are a stupid nation full of stupid people who are afraid of our shadows. A run on banks was absolutely a possibility if two banks (including the 16th largest bank in the country) failed in quick succession with no government action to protect deposits.
help the collapse of society along by withdrawing all your personal assets from banks comrades
Dylith
OT Supporter
- Jun 13, 2005
- 37,041
Joke's on you, I already do this on a monthly basis.
Menger
OT Supporter
- Nov 23, 2011
- 26,430
That bank
The key thing to know about bank runs is that it's a human psychology phenomenon more than anything else. Most people are rational and stupid at the same time. Rational because they don't want to be the last one holding the bag and stupid because they have no clue about anything. Once negative momentum starts, it's extremely difficult to reverse even for a bank that is otherwise solvent.
The key thing to know about bank runs is that it's a human psychology phenomenon more than anything else. Most people are rational and stupid at the same time. Rational because they don't want to be the last one holding the bag and stupid because they have no clue about anything. Once negative momentum starts, it's extremely difficult to reverse even for a bank that is otherwise solvent.
- Dec 30, 2004
- 69,706
Every Complex Banking Issue All At Once: The Failure of Silicon Valley Bank in One Brief Summary and Five Quick Implications
Financial crisis nerds have had quite a weekend. In short order the one-of-a-kind Silicon Valley Bank began to reportedly be experiencing losses, and large uninsured depositors began loudly and aggressively “pulling” their deposits.
www.crisesnotes.com
- Dec 30, 2004
- 69,706
Banking in very uncertain times
We may be in the early stages of a banking crisis: why, what we're doing to avoid it, and what we may not get about it.
www.bitsaboutmoney.com
fuqxyu
Thank you for the alpha
- Feb 2, 2004
- 47,838
Funny how SVB is the safest bank to hold your assets now 😂
SquirtRussel
OT Supporter
Netbastard
OT Supporter
stevezissou
OT Supporter
Dylith
OT Supporter
- Jun 13, 2005
- 37,041
Is that a "woke" conspiracy too?