News said they chop them up quick to prevent the problem from spreading...
Miscellaneous News
- Thread starter bd popeye
- Start date
News said they chop them up quick to prevent the problem from spreading...
Biden's State of Confusion
American politicians have used the threat of Iran to try to extract concessions from Saudi Arabia in the past
If this threat is no longer an option, it allows Saudi greater leverage in dealing with America
I think the real Wild Card in the game now is Israel.
If China magically manages to get Israel into discussions on peace and cooperation with SA and Iran its gonna be a shitfest at the White House with the entirety of the US having a meltdown of epic proportions.
LOL. Americans always have this dream that China will somehow end up like Japan because of overleveraging. Turns out it’s all projection.
They like to point at ghost cities but it turns out all of California has a ghost economy. A dozen or two companies there make money while the rest just suck up cash and never turn a profit!
FYI it’s seriously hard to underestimate the damage this will do to the American (specifically Californian) tech sector. This bank is used by pretty much every single tech startup. Since a lot of these tech startups aren’t profitable in the first place, the money they’re going to lose here is critical, especially in a time when VC is drawing back. FDIC only insures up to 250k USD and from what I’ve seen only 2% of accounts had less than that so a ton of these companies are going to lose a lot. Many of them probably can’t even make payroll this week.
Failed so fast that they didn't even have time to roll out the Abrams into the streets of California.
The problem they had is that they bought to many T-bills at low interest (45% of assets?) and the value of them all dropped since you can buy T-bills with better rates today. Since they had 200 billion in customer assets, that is about 100 billion in assets that are cover by T-bills that needs to be marked down. People that have money locked up an need to pay bills today will take heavy losses since they can't pay creditors, but people that can hold out will prob only lose 5-20% of their money
