Posted on 03/13/2023 12:47:52 PM PDT by cuz1961
https://rumble.com/v2cydo2-charles-payne-on-silicon-valley-bank-bailout-this-is-a-bailout-of-the-elite.html
Video at link
Runtine 2 min 58 sec
Exactly. Your point that the $250K limit on FDIC insurance per bank account backs up my point that it's not truly a savings bank if the bank is invested in nothing but 3 fairly risky asset classes: techs, startups, and U.S. treasuries (especially if treasuries are what the bank was considering their "safe" asset class). For Ford to not have to put their $440M in cash reserves (using your numbers as 88,000 ÷ 50 X $250,000) in 1,760 banks (to insure each account at $250K each), they have to choose one or a few banks that are truly savings banks with some risky investments for growth, but not completely in risky investments.
If I understood it correctly, most of the big customers at Silicone Valley Bank knew the bank was invested heavily in risky assets. They banked there as a way of helping themselves.
Exactly.
Biden has no. problem screwing Americans but he and BO will look out for the .01%.
SVB is a money laundering bank for the bidens.
Wow! Charles is pi$$ed!
Charles Payne is a voice of sanity. I watch his show daily.
That’s not an outlandish scenario. See the AIG debacle in 2008, for example.
Your point would make more sense if SVB’s failure was tied to its risky lending. That’s not what happened. They simply couldn’t raise enough cash to meet the demands of large-scale withdrawals by its customers.
bmp
It’s a big club, and you ain’t in it.
You and I are not in the big club! ~ George Carlin
(Warning! Typical George Carlin language!) May 4, 2014
“But there’s a reason. There’s a reason. There’s a reason for this, there’s a reason education sucks, and it’s the same reason that it will never, ever, ever be fixed. It’s never gonna get any better. Don’t look for it. Be happy with what you got.
Because the owners of this country don’t want that. I’m talking about the real owners now, the real owners, the big wealthy business interests that control things and make all the important decisions.
Forget the politicians. The politicians are put there to give you the idea that you have freedom of choice. You don’t.
You have no choice. You have owners. They own you. They own everything. They own all the important land. They own and control the corporations. They’ve long since bought and paid for the senate, the congress, the state houses, the city halls, they got the judges in their back pockets and they own all the big media companies so they control just about all of the news and information you get to hear. They got you by the balls.
They spend billions of dollars every year lobbying, lobbying, to get what they want. Well, we know what they want. They want more for themselves and less for everybody else, but I’ll tell you what they don’t want:
They don’t want a population of citizens capable of critical thinking. They don’t want well informed, well educated people capable of critical thinking. They’re not interested in that. That doesn’t help them.
That’s against their interests. That’s right. They don’t want people who are smart enough to sit around a kitchen table to figure out how badly they’re getting ***ked by a system that threw them overboard 30 ***king years ago.
They don’t want that. You know what they want? They want obedient workers. Obedient workers. People who are just smart enough to run the machines and do the paperwork, and just dumb enough to passively accept all these increasingly shittier jobs with the lower pay, the longer hours, the reduced benefits, the end of overtime and the vanishing pension that disappears the minute you go to collect it, and now they’re coming for your Social Security money.
They want your retirement money. They want it back so they can give it to their criminal friends on Wall Street, and you know something?
They’ll get it. They’ll get it all from you, sooner or later, ‘cause they own this ***king place.
It’s a big club, and you ain’t in it. You and I are not in the big club. And by the way, it’s the same big club they use to beat you over the head with all day long when they tell you what to believe. All day long beating you over the head in their media telling you what to believe, what to think and what to buy. The table is tilted folks.
The game is rigged, and nobody seems to notice, nobody seems to care. Good honest hard-working people — white collar, blue collar, it doesn’t matter what color shirt you have on — good honest hard-working people continue — these are people of modest means — continue to elect these rich ************s who don’t give a ***k about them. They don’t give a ***k about you.
They don’t give a ***k about you. They don’t care about you at all — at all — at all. And nobody seems to notice, nobody seems to care. That’s what the owners count on; the fact that Americans will probably remain willfully ignorant of the big red, white and blue dick that’s being jammed up their ********** everyday. Because the owners of this country know the truth: it’s called the American Dream, because you have to be asleep to believe it.”
― George Carlin////May 4, 2014
https://www.goodreads.com/quotes/964648-but-there-s-a-reason-there-s-a-reason-there-s-a-reason
https://media.tenor.com/HhA-coxG7gAAAAAC/plan-planned.gif
They simply couldn’t raise enough cash to meet the demands of large-scale withdrawals by its customers.
- - - - - - -
Did they do something wrong? Other banks are not having that problem.
Yes, all those woke, hi-tech firms, that donate to Democrats and hate conservatives with a passion. Screw them all.
Anyone that thinks these banks should be bailed out is an eff’n commie and does not believe in capitalism.
The VC’s are kicking back today laughing their asses off and saying, “Suckers, I don’t have to reduce my gain in my startups by loaning them money to make payroll. Isn’t it great to have suckers to foot the bill.”
A bailout would require stock and bond holders of SVB’s securities to get rescued. I haven’t seen any evidence that investors are getting bailed out.
Rescuing the foolhardy who had balances in excess of FDIC is a different matter. It’s arguably unwise and rewards a bank customer’s indifference to risk but it isn’t a bailout.
They had a relatively small number of big depositors that were startups experiencing a cash crunch that needed withdrawals. Most banks don’t have that situation.
They are actually bailing out the state of California.
It appears that most of the “way above FDIC” accounts were business accounts.
Roku had a balance of over $400 million at SVB. Completely irresponsible and you wonder who is running the show there.
Imploding these accounts could collapse otherwise healthy businesses. Rescue them, but require the summary execution of their CFOs.
“Did they do something wrong? Other banks are not having that problem.”
SVB didn’t properly manage their risk and the rise in interest rates devalued their bond holdings. Maybe due to spending their time applauding themselves on ESG and DEI and not paying attention to their actual business.
Other banks with very large long bond holdings could be at similar risk. Hopefully most have had better judgement than the clowns in charge of SVB.
“it’s not truly a savings bank if the bank is invested in nothing but 3 fairly risky asset classes: techs, startups, and U.S. treasuries”
US Treasuries are considered the world’s safest asset. Even countries hostile to us own them.
SVB’s problem was owning too many long term bonds and not being prepared for interest rate hikes that would diminish their present value if they were forced to mark them to market.
Who Killed Silicon Valley Bank?
Mortgage backed securities???
They bought mortgage backed securities??
Holy guacamole!
Next thing you know they will try to purchase Solyndra stock!
This FReeper spent the weekend meeting with his senior management to figure out how to pay their employees, and determine if they could even open for business today.
Are you telling me you don't use banks at all?
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