The first poster to blame Trump is a certified jackass.
specifically the 2018 bill that took away stress testing for banks like SVB...see attached article for more info on this.
For those with a desire to learn more about this topic, I strongly recommend our 2008 'Great Recession' hero, Tim Geithner's book "Stress Test", where he goes into detail on the concept of "Stress Testing"...a good read by a good man who was there at the right time.
Link: https://www.nbcnews.com/politics/congress/silicon-valley-bank-collapse-puts-new-spotlight-2018-bank-deregulation-rcna74655
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Treasury wanted to send a message to "crypto-centric" banks.
Here's a guy who pretended he could prevent the next financial crisis getting caught with his pants down. I don't know why anyone listens to them ever.
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affecting the plumbing of the economy.
this was the quote of an economist I heard today.
Basically, SBV bought a lot of normally safe investments 2 years ago...treasury bonds. But the interest rates were at 0%. Now, those interest rates sit at about 5% thanks to the unbridled Dem spending bills and the resultant fed rate hikes to tamp down inflation.
Now, the bonds are worth less than they money that was put in...which would have been fine if the bonds had reached maturity....but with investors pulling the money back out......no money to pay them back fully.
This was a time bomb caused indirectly from Biden's outrageous spending. How many other banks are in the same boat?
Now, any conservative two years ago should have seen this coming with Dems taking control, and their spending proclivities. But this was a bank of primarily Lefties.
If not Trump, then it's Putin's fault.The guy is a stone cold moron.