I think the difference between the startup culture when SVB began and now, is that the vast majority of these companies have no interest and no idea how to make a profit. Their entire strategy is based on getting the next round of funding and an exit strategy. Metrics that support these goals such as future revenues or user numbers, which are often meaningless, are bandied around and used to create the illusion of success. And this continues as the organisations become ever larger. Look at Uber – it’s massive, allegedly successful but has never made a profit. I wonder if this is at the root of SVB’s troubles? Economically ignorant and disinterested tech bosses
Seems as if today’s startups are, more or less, ponzi schemes.
Jason Smith
1 year ago
I think the difference between the startup culture when SVB began and now, is that the vast majority of these companies have no interest and no idea how to make a profit. Their entire strategy is based on getting the next round of funding and an exit strategy. Metrics that support these goals such as future revenues or user numbers, which are often meaningless, are bandied around and used to create the illusion of success. And this continues as the organisations become ever larger. Look at Uber – it’s massive, allegedly successful but has never made a profit. I wonder if this is at the root of SVB’s troubles? Economically ignorant and disinterested tech bosses
Nicky Samengo-Turner
1 year ago
Both nu britn and America have been infected by a ” post entrepreneurial” success phenomenon, whereby entrepreneurs can sell out, rightly gaining their rewards, but are replaced by job security, obsessives, devoid of any decision making and taking responsibility desires.
The standard new middle class ” oooh what will the neighbours think” holy grail is no- risk, no decision making, no responsibility, boss prostrating, highly paid jobs, for them and their offspring: it is up to others to take the risks of starting and building businesses.
I think it is mega corps, and Blackrock and Vanguard own 95% of all companies; gobble up everything and then do as they will with it – which is the ESG-Diversity hire, weird kind of Globalist-Lizard people mechanism, and they are up to something which does not bode well for us Humans..
I think it is mega corps, and Blackrock and Vanguard own 95% of all companies; gobble up everything and then do as they will with it – which is the ESG-Diversity hire, weird kind of Globalist-Lizard people mechanism, and they are up to something which does not bode well for us Humans..
Nicky Samengo-Turner
1 year ago
Both nu britn and America have been infected by a ” post entrepreneurial” success phenomenon, whereby entrepreneurs can sell out, rightly gaining their rewards, but are replaced by job security, obsessives, devoid of any decision making and taking responsibility desires.
The standard new middle class ” oooh what will the neighbours think” holy grail is no- risk, no decision making, no responsibility, boss prostrating, highly paid jobs, for them and their offspring: it is up to others to take the risks of starting and building businesses.
Saul D
1 year ago
With US bailing out SVB and Signature Bank, will the depositors face some sort of hair-cut? The snippets I see suggest they are covered in full. I’m also wondering if any other banks will now seek shelter from the Fed under the same conditions? Either way, the brittleness of the financial institutions makes it much more difficult to tackle inflation which ultimately has a huge cost on the rest of us.
I don’t think deposits were covered in full, only up to $250000, but now the fed are saying they are going to protect deposits in full:
‘Signature Bank has been closed
All depositors of Silicon Valley Bank and Signature Bank will be fully protected
Shareholders and certain unsecured debtholders will not be protected
New Fed 13(3) facility announced with $25 billion from ESF to backstop bank deposits’
Yes, sorry, should have said its not a bail out as such. Different to what happened in 2008. Fundamentally as far as I can tell, they are protecting the deposits of businesses so that they can keep trading. I think they had no choice.
I will watch sacks.
If this had been a central Bank of Ohio Farmland then Biden would have assessed huge fines and penalties on it, closed it down and never helped anyone wile trying to keep the FDIC from even paying the $250,000.
But this Silicone Bank is for the ‘Correct Thinkers’, the Democrat Party Elites – so it is ‘Every one gets Everything’ The Government will just do some printing and all you lovely people will be fine. (and do not forget this when it comes to election campaign contribution times)
Mr Bjorn. I am not a banking expert. But i am an alt media nerd. I know a little bit about dollars and gold. Goes with the territory. What follows is what I have been able to figure out:
They had to back deposits for confidence. A bank run started because a whole load of shit went wrong with us treasuries held by the bank.
Deposits were only guaranteed to $250000, some companies had millions in deposits that were not insured. They were worried about contagious bank runs.
Some of the reasons the fed may have chosen to act as they did, explained by this financial guy who’s tweet was doing the rounds in other places because he went mental on Sunday:
HOWEVER.
I have read some people saying JPM is just eating up small banks, that they would be quite happy if the fed didn’t raise rates because of this debacle.
I have read its part of the cbdcs introduction.
I have read the dollar and the banks are in trouble and America has to choose between the dollar and the banks. That it is the dollar that is now under pressure.
Any clarification from people that are actually qualified in this sh*t would be great.
Mr Bjorn. I am not a banking expert. But i am an alt media nerd. I know a little bit about dollars and gold. Goes with the territory. What follows is what I have been able to figure out:
They had to back deposits for confidence. A bank run started because a whole load of shit went wrong with us treasuries held by the bank.
Deposits were only guaranteed to $250000, some companies had millions in deposits that were not insured. They were worried about contagious bank runs.
Some of the reasons the fed may have chosen to act as they did, explained by this financial guy who’s tweet was doing the rounds in other places because he went mental on Sunday:
HOWEVER.
I have read some people saying JPM is just eating up small banks, that they would be quite happy if the fed didn’t raise rates because of this debacle.
I have read its part of the cbdcs introduction.
I have read the dollar and the banks are in trouble and America has to choose between the dollar and the banks. That it is the dollar that is now under pressure.
Any clarification from people that are actually qualified in this sh*t would be great.
If this had been a central Bank of Ohio Farmland then Biden would have assessed huge fines and penalties on it, closed it down and never helped anyone wile trying to keep the FDIC from even paying the $250,000.
But this Silicone Bank is for the ‘Correct Thinkers’, the Democrat Party Elites – so it is ‘Every one gets Everything’ The Government will just do some printing and all you lovely people will be fine. (and do not forget this when it comes to election campaign contribution times)
Yes, sorry, should have said its not a bail out as such. Different to what happened in 2008. Fundamentally as far as I can tell, they are protecting the deposits of businesses so that they can keep trading. I think they had no choice.
I will watch sacks.
I don’t think deposits were covered in full, only up to $250000, but now the fed are saying they are going to protect deposits in full:
‘Signature Bank has been closed
All depositors of Silicon Valley Bank and Signature Bank will be fully protected
Shareholders and certain unsecured debtholders will not be protected
New Fed 13(3) facility announced with $25 billion from ESF to backstop bank deposits’
Don’t worry. Biden’s Inflation Reduction Act will sort it all out.
Saul D
1 year ago
With US bailing out SVB and Signature Bank, will the depositors face some sort of hair-cut? The snippets I see suggest they are covered in full. I’m also wondering if any other banks will now seek shelter from the Fed under the same conditions? Either way, the brittleness of the financial institutions makes it much more difficult to tackle inflation which ultimately has a huge cost on the rest of us.
rob drummond
1 year ago
Somehow I doubt very much this will be the end of Silicon Valley
I think the difference between the startup culture when SVB began and now, is that the vast majority of these companies have no interest and no idea how to make a profit. Their entire strategy is based on getting the next round of funding and an exit strategy. Metrics that support these goals such as future revenues or user numbers, which are often meaningless, are bandied around and used to create the illusion of success. And this continues as the organisations become ever larger. Look at Uber – it’s massive, allegedly successful but has never made a profit. I wonder if this is at the root of SVB’s troubles? Economically ignorant and disinterested tech bosses
And the ” reality” that Tesla is more valuable than Toyota?!!! That just says it all….
Seems as if today’s startups are, more or less, ponzi schemes.
And the ” reality” that Tesla is more valuable than Toyota?!!! That just says it all….
Seems as if today’s startups are, more or less, ponzi schemes.
I think the difference between the startup culture when SVB began and now, is that the vast majority of these companies have no interest and no idea how to make a profit. Their entire strategy is based on getting the next round of funding and an exit strategy. Metrics that support these goals such as future revenues or user numbers, which are often meaningless, are bandied around and used to create the illusion of success. And this continues as the organisations become ever larger. Look at Uber – it’s massive, allegedly successful but has never made a profit. I wonder if this is at the root of SVB’s troubles? Economically ignorant and disinterested tech bosses
Both nu britn and America have been infected by a ” post entrepreneurial” success phenomenon, whereby entrepreneurs can sell out, rightly gaining their rewards, but are replaced by job security, obsessives, devoid of any decision making and taking responsibility desires.
The standard new middle class ” oooh what will the neighbours think” holy grail is no- risk, no decision making, no responsibility, boss prostrating, highly paid jobs, for them and their offspring: it is up to others to take the risks of starting and building businesses.
I think it is mega corps, and Blackrock and Vanguard own 95% of all companies; gobble up everything and then do as they will with it – which is the ESG-Diversity hire, weird kind of Globalist-Lizard people mechanism, and they are up to something which does not bode well for us Humans..
I think it is mega corps, and Blackrock and Vanguard own 95% of all companies; gobble up everything and then do as they will with it – which is the ESG-Diversity hire, weird kind of Globalist-Lizard people mechanism, and they are up to something which does not bode well for us Humans..
Both nu britn and America have been infected by a ” post entrepreneurial” success phenomenon, whereby entrepreneurs can sell out, rightly gaining their rewards, but are replaced by job security, obsessives, devoid of any decision making and taking responsibility desires.
The standard new middle class ” oooh what will the neighbours think” holy grail is no- risk, no decision making, no responsibility, boss prostrating, highly paid jobs, for them and their offspring: it is up to others to take the risks of starting and building businesses.
With US bailing out SVB and Signature Bank, will the depositors face some sort of hair-cut? The snippets I see suggest they are covered in full. I’m also wondering if any other banks will now seek shelter from the Fed under the same conditions? Either way, the brittleness of the financial institutions makes it much more difficult to tackle inflation which ultimately has a huge cost on the rest of us.
I don’t think deposits were covered in full, only up to $250000, but now the fed are saying they are going to protect deposits in full:
‘Signature Bank has been closed
All depositors of Silicon Valley Bank and Signature Bank will be fully protected
Shareholders and certain unsecured debtholders will not be protected
New Fed 13(3) facility announced with $25 billion from ESF to backstop bank deposits’
https://www.zerohedge.com/markets/svb-latest-developments-live-blog-fdic-auction-failed-svb-assets-underway
I found David Sacks’s argument in his interview with Freddie Sayers to be convincing. What do I know? Worth a listen.
Yes, sorry, should have said its not a bail out as such. Different to what happened in 2008. Fundamentally as far as I can tell, they are protecting the deposits of businesses so that they can keep trading. I think they had no choice.
I will watch sacks.
If this had been a central Bank of Ohio Farmland then Biden would have assessed huge fines and penalties on it, closed it down and never helped anyone wile trying to keep the FDIC from even paying the $250,000.
But this Silicone Bank is for the ‘Correct Thinkers’, the Democrat Party Elites – so it is ‘Every one gets Everything’ The Government will just do some printing and all you lovely people will be fine. (and do not forget this when it comes to election campaign contribution times)
Mr Bjorn. I am not a banking expert. But i am an alt media nerd. I know a little bit about dollars and gold. Goes with the territory. What follows is what I have been able to figure out:
They had to back deposits for confidence. A bank run started because a whole load of shit went wrong with us treasuries held by the bank.
Deposits were only guaranteed to $250000, some companies had millions in deposits that were not insured. They were worried about contagious bank runs.
Some of the reasons the fed may have chosen to act as they did, explained by this financial guy who’s tweet was doing the rounds in other places because he went mental on Sunday:
https://twitter.com/i/web/status/1634564398919368704
HOWEVER.
I have read some people saying JPM is just eating up small banks, that they would be quite happy if the fed didn’t raise rates because of this debacle.
I have read its part of the cbdcs introduction.
I have read the dollar and the banks are in trouble and America has to choose between the dollar and the banks. That it is the dollar that is now under pressure.
Any clarification from people that are actually qualified in this sh*t would be great.
Also. Has America ever stuck to basic economics since it departed the gold standard?
Hasn’t this all really been quite a long time coming?
Mr Bjorn. I am not a banking expert. But i am an alt media nerd. I know a little bit about dollars and gold. Goes with the territory. What follows is what I have been able to figure out:
They had to back deposits for confidence. A bank run started because a whole load of shit went wrong with us treasuries held by the bank.
Deposits were only guaranteed to $250000, some companies had millions in deposits that were not insured. They were worried about contagious bank runs.
Some of the reasons the fed may have chosen to act as they did, explained by this financial guy who’s tweet was doing the rounds in other places because he went mental on Sunday:
https://twitter.com/i/web/status/1634564398919368704
HOWEVER.
I have read some people saying JPM is just eating up small banks, that they would be quite happy if the fed didn’t raise rates because of this debacle.
I have read its part of the cbdcs introduction.
I have read the dollar and the banks are in trouble and America has to choose between the dollar and the banks. That it is the dollar that is now under pressure.
Any clarification from people that are actually qualified in this sh*t would be great.
Also. Has America ever stuck to basic economics since it departed the gold standard?
Hasn’t this all really been quite a long time coming?
If this had been a central Bank of Ohio Farmland then Biden would have assessed huge fines and penalties on it, closed it down and never helped anyone wile trying to keep the FDIC from even paying the $250,000.
But this Silicone Bank is for the ‘Correct Thinkers’, the Democrat Party Elites – so it is ‘Every one gets Everything’ The Government will just do some printing and all you lovely people will be fine. (and do not forget this when it comes to election campaign contribution times)
Yes, sorry, should have said its not a bail out as such. Different to what happened in 2008. Fundamentally as far as I can tell, they are protecting the deposits of businesses so that they can keep trading. I think they had no choice.
I will watch sacks.
haircut? yes, all shorn at the sides, beard in-tact, and tatoos.
apols… twattoos
apols… twattoos
Don’t worry. Biden’s Inflation Reduction Act will sort it all out.
He has this whole bank crisis under control too apparently. Nobody worry.
Americans elsewhere are calling yellen Mrs Debtfire.
He has this whole bank crisis under control too apparently. Nobody worry.
Americans elsewhere are calling yellen Mrs Debtfire.
I don’t think deposits were covered in full, only up to $250000, but now the fed are saying they are going to protect deposits in full:
‘Signature Bank has been closed
All depositors of Silicon Valley Bank and Signature Bank will be fully protected
Shareholders and certain unsecured debtholders will not be protected
New Fed 13(3) facility announced with $25 billion from ESF to backstop bank deposits’
https://www.zerohedge.com/markets/svb-latest-developments-live-blog-fdic-auction-failed-svb-assets-underway
I found David Sacks’s argument in his interview with Freddie Sayers to be convincing. What do I know? Worth a listen.
haircut? yes, all shorn at the sides, beard in-tact, and tatoos.
Don’t worry. Biden’s Inflation Reduction Act will sort it all out.
With US bailing out SVB and Signature Bank, will the depositors face some sort of hair-cut? The snippets I see suggest they are covered in full. I’m also wondering if any other banks will now seek shelter from the Fed under the same conditions? Either way, the brittleness of the financial institutions makes it much more difficult to tackle inflation which ultimately has a huge cost on the rest of us.
Somehow I doubt very much this will be the end of Silicon Valley