Society SVB Bank insolvency/collapse - Silicone Valley

Welcome to our Community
Wanting to join the rest of our members? Feel free to Sign Up today.
Sign up
K

kaladin stormblessed

Nala fanboy
Apr 24, 2017
17,637
20,147
If banks are functioning properly, they are managing all of their risks, including counterparty risk

So there might be some contagion here, but I think it's much more likely that the biggest losers will be businesses that did way too much of their financing through SVB as opposed to diversifying their lenders

Odds are, the smaller the company, the more likely it is that they formed relationships at SVB, and did all their financing with SVB

Sadly, Some businesses will be fucked based off of those poor choices
 
sparkuri

sparkuri

Pulse On The Finger Of The Community
First 100
Jan 16, 2015
34,597
46,690
Vae Victis said:
I suppose I can use all the copper ive saved up to barter with
Click to expand...
In what form?
I still separate pennies & actually save nickels as a buried investment.
But copper will 10x in the future imo.
 
K

kaladin stormblessed

Nala fanboy
Apr 24, 2017
17,637
20,147
Rambo John J said:
Hello Storm, hope your well and happy

Thank you for the breakdown
I don't trust these banks
Click to expand...
They are corrupt as hell. Not trustworthy

I hope my post didn't suggest that

All I was trying to say is that the 30 trillion number gives no clarity other than that they do derivatives

The fallout from that 30 trillion could be huge. Or it could be literally nothing

*it'll be something. But nowhere near a single trillion tho
 
K

kaladin stormblessed

Nala fanboy
Apr 24, 2017
17,637
20,147
sparkuri said:
That's an excellent breakdown but I think Rambo John J @Rambo John J was joking?
Click to expand...
I knew he was being facetious (or whatever the right word is)

But his comment sort of eluded to the concept of margin, which is misleading for derivatives vs other financial products like bonds

If they had sold 30 trillion notional of bonds for instance, then someone would be shit out of luck. Because SVB had made a deal to pay the bondholders the 30 trillion notional at expiration of the bond. And that's not gonna happen lol
 
sparkuri

sparkuri

Pulse On The Finger Of The Community
First 100
Jan 16, 2015
34,597
46,690
kaladin stormblessed said:
I knew he was being facetious (or whatever the right word is)

But his comment sort of eluded to the concept of margin, which is misleading for derivatives vs other financial products like bonds

If they had sold 30 trillion notional of bonds for instance, then someone would be shit out of luck. Because SVB had made a deal to pay the bondholders the 30 trillion notional at expiration of the bond. And that's not gonna happen lol
Click to expand...
Explaining derivatives alone can be confusing to many. Notions on derivatives is nuts.
It's like that scene in The Big Short when Selena Gomez & company explain synthetic CDO's to the audience.
 
K

kaladin stormblessed

Nala fanboy
Apr 24, 2017
17,637
20,147
sparkuri said:
Explaining derivatives alone can be confusing to many. Notions on derivatives is nuts.
It's like that scene in The Big Short when Selena Gomez & company explain synthetic CDO's to the audience.
Click to expand...
Was it selena gomez? I remember the blonde haired chick in the bathtub. Actually I'm starting to vaguely remember one of selena too.

Great movie. The dude from tmmacs favorite movie (newsies) wss awesome as always

Good book too

After I read that one, I read flashboys. I was downstairs smoking a cig reading it as some big wig came outside and noticed the cover

And he was like "don't read that shit. It sucks."

Haha. Granted, he's one of the doucebags in the in club who made Bank due to bailouts despite causing the problem in the first place
 
Rambo John J

Rambo John J

Eats things that would make a Billy Goat Puke
First 100
Jan 17, 2015
71,704
71,598
kaladin stormblessed said:
Yup. Only difference is that you don't go around using that term. My nerdy ass has adopted "seven hells" into my every day vernacular lol
Click to expand...
No
Your wrong

I use six demon bag about once a week on folks and I don't even know what the 7 hells it means.
My lady forgets quickly so I use it on her every month or two and she looks at me like I'm a moran.
 
Rambo John J

Rambo John J

Eats things that would make a Billy Goat Puke
First 100
Jan 17, 2015
71,704
71,598
I'm trying to cash 2K check tomorrow so we will see if there is any uptick at the bank, it is a semi local credit union(allegedly) or whatever that means.
 
sparkuri

sparkuri

Pulse On The Finger Of The Community
First 100
Jan 16, 2015
34,597
46,690
Rambo John J said:
I'm trying to cash 2K check tomorrow so we will see if there is any uptick at the bank, it is a semi local credit union(allegedly) or whatever that means.
Click to expand...
I'll be at mine first thing in the morning.
I'll test the waters with 75k.
If that goes well I'll pull out another $5-600,000.00.
If that goes well I'll see how they react to $2-3,000,000.00.

Of course, I'll be wearing a ski mask, & I know you guys got my back.
 
You must log in or register to reply here.
Top Bottom