SVB sinks wiping $61B in market value off bank stocks

https://www.foxbusiness.com/markets/svb-sinks-wiping-61b-in-market-value-off-bank-stocks

HYPERLINK has full article

snip

SVB shares lost 60.4%, the largest percentage drop since 1998,..........

JPMorgan, Wells Fargo, Bank of America and Citigroup fell in sympathy wiping out over $60 billion in market value, including SVB, as tracked by Dow Jones Market Data Group. It was the worst day for bank stocks since 2020 which fell as a group by over 4%.

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Not good news for startup and innovative companies who used SVB as a resource. Also not good news for the big banks.

At least in other news, more restaurant jobs were added last month. The growth in hospitality/food service is an excellent talking point for anyone looking for a silver lining to the devastation of wealth and good-paying jobs in other sectors.

 

How is the hospitality industry growing when everyone is going broke according to you?

 

jobs remained open post-covid.

Taxpayer money give-away was halted so folks had to return to work and those are the available jobs; other than trained medical professionals (huge shortage of nurses)

feel free to keep playing the Democrat-voter game. The reality is the economy is hurting and folks are hurting. Savings depleted. Retirement fund values tanked, credit card debt rising, defaults rising.

I'm sorry if this isn't what Democrat voters want to hear. That's OK, switch on ABC news or NPR and maybe they will talk about Trump or Jan 6. It might make you feel better.

 

I don't like the democrats, they are too conservative for me.

 

I heard about this bank collapse earlier. I don't know what this means, but it's big!

I guess the lesson here is don't put more money in the bank than the FDIC insures.

This is going to affect the rich and the large capital projects most.

This could be the aftershock of the crypto collapse, or perhaps a sign that the tech industry is too big and isn't sustainable. Is it time for the workers to become dirt farmers?

 

Gee that's hard to figure out.

People lose their real jobs and then have to go work at Taco Bell.

 

Maybe SVB should move to Ukraine and our gov't will bail them out.

 

I'm hearing SVB invested substantially in long term treasury notes and the rising interest rates hurt them. If true more banks will most likely be effected for the same reason.

 

And just earlier this week, the fed (aka JP) doubled down on further interest rate hikes. Wonder if this will change anything.

 

Banks are businesses too and are most certainly effected by interest rates. Loans become more expensive which is why interest rates are hiked. The fed wants to discourage borrowing so this will hurt banks. Seems SVB was losing money on the long term treasury bonds which take anywhere from 10 to 30 years to mature. Not a good investment it these uncertain times.

 

I wouldn't support a bailout.

 

Well there is a 0% chance that the GOP house would vote for one anyway

Between this and the inevitable debt ceiling non-increase, the US is on track for an economic collapse by summer. Both parties want it so they can blame the other and try to convince enough people for 2024 as the deluded partisans cheer them on

 

The SVB collapse will look awful for dems and the coming election, especially while we are sending so much to Ukraine. There are many businesses with holdings in the SVB that will lose everything. I think something will be done ASAP to stop this, this is bigger than most realize and the effects of it will be far reaching.

 

There is some speculation that the Fed may have to start cutting rates to avert a disaster worse than inflation

 

I have heard the same, which is literally days after J. Powell said there would be several more hikes. A quick fed pivot may be coming sooner than expected. But it's too late for a pivot to save SVB, so I'm thinking we will hear something over the weekend. I don't think they will be allowed to collapse.

 

Perfect!

 

Never fear, the GREAT RESET is near

Own nothing
Be nothing

It's the path of the DNC.. And it comes with a free tin cup!

 

Don't worry, the people you vote for do.

 

Luckily the people who vote for them don't understand basic math.

 

Fuzzy logic - Wikipedia

 

More like fuzzy critical theory.

 

That's chapter two, right before "There are no sex's"

 

I didn't vote for Bush.

 

You should have, he's basically a Democrat.

 

Didn't Jim Cramer recommend them?

Wait a minute...I'm starting to notice a pattern here...