SVB: I'll have to wait for the book.
How much will this affect California budget. Remember: 1% of California taxpayers account for 49% of all California revenue.
MOST IMPORTANT BANK IN THE SILICON VALLEY JUST FAILED -- California regulators shut down the bank!
Half of all venture capital money in the San Francisco Bay area goes through this bank. Huge bank for Chinese companies.
Breaking: SIVB trading -- halted. 8:00 a.m. CT -- March 10, 2023. Already trying to sell itself -- and apparently those attempts not going well.
SIVB: wiki --
On 9 March 2023, shares of SVB Financial plunged more than 62% after the company proposed a share sale to shore up its balance sheet which had suffered a $1.8 billion loss on Treasuries due to rising inflation.
SIVB: link here.
- Pre-market: down another 44%. Could open under $60. [Later: could open under $35. Some feel that SIVB is NOT a one-off.]
- Culprit: Treasuries.
- Five days, from $275 to $106.
- Cryptocurrency: pending.
- JPow's third big problem. Credibility.
He's publicly committed to 2% inflation rate. "Everyone" knows that's impossible and in a modern economy like the US, a 2% inflation rate is fantasy and, in fact, is actually detrimental to the well-being of the nation and the working class. A two-percent inflation rate could be seen by some as a personal vendetta for JPow and that he is willing to take the nation down if he has to, to get to 2%. It will be interesting to see if JPow will moderate his statements at risk of "negative" headlines on "flip-flopping."
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