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It’s Like The End Of Animal House

It’s Friday desk clearing time for this blogger. “Silicon Valley Bank lost $1.8 billion in the sale of U.S. treasuries and mortgage-backed securities that it had invested in, owing to rising interest rates. The bank is also contending with shrinking customer deposits, given that its customer base of largely startups has far less money right now to park at a financial institution. ‘My ask is just to stay calm, because that’s what’s important,’ CEO Greg Becker said to an untold number of viewers who were not given the opportunity to ask questions. ‘Silicon Valley Bank has been a ‘longtime supporter of you, the venture capital community companies, and so the last thing we need you to do is panic,’ he added, saying what no one ever wants to hear from the head of their bank.”

“One of those customers, who asked not to be named, said to us afterward: ‘It’s like the end of ‘Animal House.’ Don’t panic? Now, I am panicking, watching your broadcast.'”

“Publicly traded shares in the Santa Clara, Calif.-based bank fell 60 percent Thursday after the company said in a filing the day before that it had sold $21 billion in assets and was selling more of its own stock to raise money. ‘I am hearing from dozens of founders about what to do at SVB,’ Howard Lerman, the co-founder of business software company Yext, said on Twitter. ‘It’s an all out bank run.'”

“Silicon’s Valley‘s clubby world of venture capital investors and entrepreneurs plunged into panic on Thursday. ‘I’ve easily spoken to 70 of them today,’ one venture investor, who asked to remain anonymous, told Fortune. ‘It’s a massive f****ing shit show.’ ‘If those accounts get frozen, deals can’t get met, software can’t get paid for—these kinds of delays, even by a few weeks, can be really catastrophic for business,’ a venture investor says, adding: ‘I don’t think we actually lose everything—but it could be frozen for quite some time, which is essentially the same thing,’ a venture investor says.”

“This week’s events are causing some venture investors to recall the mayhem of the 2008 financial crisis: ‘For those that haven’t understood what 2008 felt like, this is a very small version of it, but this is it,’ one venture investor whose fund and whose portfolio companies use SVB, told Fortune, describing ‘sheer panic.’ Another venture investor speculated that ‘SVB is not going to go down,’ adding a reference to 2008: ‘It can’t—it’s like, too big to fail.'”

“Some who bought their homes during the pandemic say they are starting to feel some buyer’s remorse, especially those who bought their homes sight unseen. ‘I feel lied to and ripped off,’ Mikhekla Hunnicutt told NewsNation. Hunnicutt, a first-time homebuyer, bought her home in St. Louis in October 2020. Not long after moving in with her husband, they started having major plumbing issues. ‘This has been dragging on for a couple of years now. And I’m very frustrated by it. I had to take out a large loan to get the repairs done,’ she said.”

“Kay Kingsman, who bought her first home in Portland, Oregon, in August 2021, said she felt swept up with everything at the time of purchasing, but on move-in day, she said there were already problems with the house. ‘I noticed the worst smell of my life,’ Kingsman said. ‘When I stepped in, it was overwhelming like cat urine. Everything was just really dirty and like grimy, to the point where it was hard to believe someone had lived in this house. They also had to shut off the water for the downstairs bathroom because the toilet was just draining water out of the bottom.’ Kingsman said she was the first in her family to be able to buy a house, but said she has mixed feelings about the experience. ‘I’m still very proud of myself that I did it, but I am disappointed that I feel kind of taken advantage of.'”

“Ronnie Johnston and his girlfriend Christina Henry have been trying to sell their house on Park Avenue since moving into a new place in November. There was an initial flurry of interest but that abruptly ended after a Norfolk Southern train carrying hazardous chemicals derailed Feb. 3 in a fiery wreck and those toxic chemicals were released into the waterways and air a few miles away. Two showings were canceled. ‘We’re just disgusted and worried,’ Johnston, 47, a contractor, said while standing inside the kitchen of their former home. ‘Now the market has crashed and everyone and their brother are trying to put their house up for sale.'”

“Johnston and Henry, 47, said their greatest fear is that they won’t be able to sell the house now and they will be foreclosed on. Their finances allowed them to pay two mortgages for only a short time, about six months. Johnston said he spent nearly tens of thousands of dollars getting the house ready for sale, and Henry said interest in the property gained steam after the holidays. They had at least 10 interested buyers. Now it’s all crickets. The couple recently dropped the listing price to $150,000 after showings were canceled — the third time, they cut the price. The first two reductions were not related to the derailment. The couple hopes to unload the house before the situation ruins their credit.”

“The recent slump in Citrus County’s housing market is indicative of a broader trend in the state of Florida, where the real estate market has been showing signs of cooling off in recent months. The number of closed sales of single-family homes in Citrus County fell by 35.4 percent in January, compared tp the same month last year. This significant decline in sales has resulted in a 161 percent rise in active home listings inventory, with 908 homes currently up for sale in the county. This shift from a seller’s market to that of a buyer may seem alarming to some. Of course, it is important to acknowledge that a declining housing market can be difficult for homeowners who are looking to sell their properties. However, it is worth noting that the current trend in Citrus County is not necessarily a cause for panic.”

“A large batch of multifamily CMBS is coming due in Dallas-Fort Worth this year, leaving owners grappling with the challenge of securing new loans amid higher interest rates and a scarcity of capital. ‘[Owners are] left with no good choices,’ Keith Van Arsdale, CEO of Dallas-based BMC Capital said. ‘Many owners are being forced to sell their assets rather than take the hit on purchasing a more expensive interest rate cap for a refi loan. The deals going under contract in the market tell you all you need to know — if activity is down, that means prices are too high.'”

“When Goral Shukla moved to Canada in 2016, it was her dream to be able to purchase a house and a three bed, one-and-a-half bath in Dieppe checked all the boxes, but now she’s ready to sell it. ‘This is my regret that I bought this house,’ she said. The young family bought the home in 2022, but their dream quickly turned into a nightmare when they received this year’s property tax bill. ‘Last year, our tax was $249 per month, but this year, from March, they say that our property tax will be $443, so it is almost double,’ she said. ‘I think we can’t afford this. Everyone’s dream is to buy a home in Canada and now no one can afford this.'”

“Jason Bosworth has been forced to take on a second job as he faces the ‘stressful’ reality of his family’s mortgage rolling off an ultra-low fixed rate, which will see their repayments double to $1200 a week. The dad-of-two purchased the family home with his wife on the Gold Coast back in 2021, with their interest rate fixed at just 2.1 per cent. Just finding their dream home had been a battle as they searched for around five months while the housing market was going nuts.”

“‘We struggled with buying this property as we weren’t cash buyers. We were waiting on our current home selling and then using that money to obtain that property and that was around the time that Melbourne and Sydney buyers were coming up and doing insane cash offers and going $100,000 above us,’ he told news.com.au. ‘It was a bit of a challenge back then to even obtain the property that we got – it’s been a ride.'”

“Mr Bosworth said the family had already made cuts in anticipation of their mortgage payments going up including cancelling things like the kids’ swimming lessons, TV subscriptions and a casual coffee on the weekend. Mr Bosworth said his property still held a lot of equity but he had already seen its value plummet in the space of a few months. ‘We actually looked to sell probably three or four months ago – it had nothing to do with interest rates going up – we were just a looking at a different lifestyle avenue and it was still a strong market,’ he said. ‘But property in my area since then has gone down between $100,000 and $200,000. It’s definitely a concern as … my wife and I are putting everything into the place so we don’t have to sell. But at the end of day, if that’s what we need to do to keep everyone happy and healthy, that is what we need to do.'”

“There is an estimated 120,000 people who are already facing negative equity – where their mortgage is bigger than the value of their home – and there are expectations more people will be pushed into this territory with the latest rate rise. Compare the Market’s general manager of money Stephen Zeller said negative equity is quite concerning for both borrowers and lenders. ‘This is a real-life nightmare that some Australian homeowners are living right now,’ he said. ‘Especially those who might have borrowed close to their maximum amount with a high loan-to-value ratio. Those homeowners tend to have small buffers against market prices. The threat of negative equity is now a very daunting reality to borrowers after 10 consecutive interest rate rises triggered record-breaking price drops.'”

“There are 800,000 mortgage holders in Australia who are facing a ‘mortgage cliff’ as they roll off ultra-low fixed rates, according to the RBA, with one-fifth of loans seeing their fixed rates ending this year. It revealed 15 per cent of all homeowners on variable mortgage rates would see their spare cash flow turn negative – meaning they wouldn’t earn enough money to cover the mortgage, let alone buy food.”

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This Post Has 193 Comments

    1. coffee snob. cuppa Folgers & I’m caffeined up to type out a full mornings page of witty insights/insults.

      1. The best coffee ever is freshly ground beans brewed in a French Press, aboard the boat, anchored out at sunrise.

        1. Sadly, my beloved boat, along with my gun collection and precious metals, lies at the bottom of the Marianna Trench after my recent tragic boating accident.

  2. ‘I don’t think we actually lose everything—but it could be frozen for quite some time, which is essentially the same thing’

    Well you can always sell yer shack. Or maybe not.

    Yip-yip-yip-yip-yip-yip, bmm
    Sha-na-na-na, sha-na-na-na-na, ahh-do
    Sha-na-na-na, sha-na-na-na-na, ahh-do
    Sha-na-na-na, sha-na-na-na-na, ahh-do
    Sha-na-na-na, sha-na-na-na-na
    Ahh, yip-yip-yip-yip-yip-yip-yip-yip
    Mum-mum-mum-mum-mum-mum, get a job
    Sha-na-na-na, sha-na-na-na-na
    Well every morning about this time (Sha-na-na-na, sha-na-na-na-na)
    She gets me out of bed, a-crying get a job (Sha-na-na-na, sha-na-na-na-na)
    After breakfast everyday she throws the want ads right my way
    And never fails to say – get a job
    Sha-na-na-na, sha-na-na-na-na, ahh-do
    Sha-na-na-na, sha-na-na-na-na, ahh-do
    Sha-na-na-na, sha-na-na-na-na, ahh-do
    Sha-na-na-na, sha-na-na-na-na
    Ahh, yip-yip-yip-yip-yip-yip-yip-yip
    Mum-mum-mum-mum-mum-mum, get a job
    Sha-na-na-na, sha-na-na-na-na
    Lord, and when I get the paper I read it through and through
    I, my girl never fail to see if there is any work for me…
    I got to go back to the house, hear that woman’s mouth
    Preachin’ and a cryin’, tell me that I’m lyin’ about a job
    That I never could find
    Sha-na-na-na, sha-na-na-na-na, ahh-do
    Sha-na-na-na, sha-na-na-na-na, ahh-do
    Sha-na-na-na, sha-na-na-na-na, ahh-do
    Sha-na-na-na, sha-na-na-na-na
    Ahh, yip-yip-yip-yip-yip-yip-yip-yip
    Mum-mum-mum-mum-mum-mum, get a job
    Sha-na-na-na, sha-na-na-na-na
    Lord, and when I get the paper I read it through and throu-ough
    I, my girl never fail to see if there is any work for me…
    I better go back to the house, hear that woman’s mouth
    Preachin’ and a cryin’, tell me that I’m lyin’ about a job
    That I never could find
    Sha-na-na-na, sha-na-na-na-na, ahh-do
    Sha-na-na-na, sha-na-na-na-na, ahh-do
    Sha-na-na-na, sha-na-na-na-na, ahh-do
    Sha-na-na-na, sha-na-na-na-na, ahh-do
    Sha-na-na-na…

    1. ‘SVB is not going to go down,’ adding a reference to 2008: ‘It can’t—it’s like, too big to fail.’”

      I’ve, like, not even heard of this bank until yesterday. It can’t be all that big. And if there’s one industry we can afford to lose, it’s venture capital. It’s okay to stop inventing for a while and focus on maintaining existing infrastructure.

      1. I used to talk with someone over there in 1999/2000 when I worked at a dotbomb. Most people don’t realize how prevalent drug use is with these people.

      2. It’s okay to stop inventing for a while

        There wasn’t a whole lot of that going on anyway.

        2. Aaand it’s gone.

          It is failures like this that spark the next phase of the bust. This is where things start to get interesting! Who is next??

          1. Yes, indeed. Time to enjoy the rain and snow and snuggle up to the warm glow of banks igniting.

      3. You’ve never heard of the bank? Why am I not surprised?

        “Meanwhile, a collapse of Silicon Valley Bank would mark the 2nd largest bank failure in U.S. history.”

      4. CNBC reported SVB is the 2nd largest bank failure sine WAMU and the 16th largest bank in the nation.

      5. I’ve, like, not even heard of this bank until yesterday.

        Gonna be honest, neither had I. I don’t pay a lot of attention to banks. I think most people know BofA, Wells Fargo, CITI, etc., but SVB was not really a household name, despite its apparent size. I suspect the lack of a large retail presence is why.

          1. Yes but ultimately aren’t these Silicon Valleys companies stock filling the pension funds and 401K’s of America? So it’s the average Joe losing.

            Smart gamblers are bookies and take the vig.

          2. Many of these companies were unicorn or unicorn wannabes waiting to IPO. I learned the hard way in 2001 not to invest much in tech. My $1500 investment lost half its value and took 10 years to recover.

          4. I graduated from law school in June 2000. September 2001 was the first time I could start an IRA. The $1500 saved me some on taxes. It was a very useful but relatively inexpensive lesson.

  3. ‘she felt swept up with everything at the time of purchasing, but on move-in day, she said there were already problems with the house. ‘I noticed the worst smell of my life,’ Kingsman said. ‘When I stepped in, it was overwhelming like cat urine. Everything was just really dirty and like grimy, to the point where it was hard to believe someone had lived in this house. They also had to shut off the water for the downstairs bathroom because the toilet was just draining water out of the bottom’

    Remember Kay, it is still cheaper than renting.

    ’Kingsman said she was the first in her family to be able to buy a house, but said she has mixed feelings about the experience. ‘I’m still very proud of myself that I did it, but I am disappointed that I feel kind of taken advantage of’

    I’m proud of you too Kay. Plus you can paint those sewage stained walls any color you like!

    1. oh my deity. When do the big banks have to report in these unrealized losses – is the average paper out for 3, 5, 10 years?

      Just BofA has unrealized losses of $116B if i am understanding.

      OK – calling it now. Fed Pivot back down on interest rates to save the @*#&^B bankers

      1. Looks like massive coordinated central bank intervention in the debt market this morning. Buying up your own debt with created-out-of-thin-air Yellen Bux is going to be massively inflationary, but oh well.

      2. “Fed Pivot back down on interest rates to save the @*#&^B bankers”

        Think you are right. Rate cuts and QE during high inflation? Yep looking like a massive dollar collapse against the tangibles.

        1. looking like

          Over here it looks like dollars are getting harder to find, rates are going up and PMs are sliding sideways at best. Of course, I don’t have one of those fancy crystal balls.

          1. That’s the general consensus in my corner of YouTube finance: Dollar milkshake today, Weimar republic tomorrow.

            As for gold, when the confidence goes, paper ounces aren’t going to have any value. Either the spot price paper ounce system will break, or the premium-over-spot for physical metal will skyrocket. Silver is a wild card because of its industrial use. Each Patriot missile needs 500 ounces of silver, and you can’t power a Tesla with a Comex contract.

          3. Each Patriot missile needs 500 ounces of silver’ funny story back in the day I worked in defense all missiles use silver solder its also called high temp solder because missiles get hot. Its difficult to use compared to lead tin so head of assembly decided screw it I’m using lead tin. Later maybe years later a worker went to a competitor and asked why are you using this hard to re flow solder we always used lead tin… oh really.. I was long gone but heard about it too funny. Big recall of course

        2. Gold market thinks you’re right about FED saving Banks and not fighting inflation . At least for today

      3. I wonder if Powell can be allowed to pivot so fast. We haven’t even seen the unemployment numbers tick up yet.

        1. Just yesterday, the Fed was never going to be “allowed” to raise rates in the first place.

        2. I wonder if Powell can be allowed to pivot so fast. We haven’t even seen the unemployment numbers tick up yet.

          Why would Powell “pivot” when inflation is raging? It makes no sense whatsoever. Think things through just a little bit. The idea that the FED is going to ignore inflation and start lowering rates is absurd. This bank has absolutely no bearing on inflation or the economy at all.

          1. Why would Powell “pivot” when inflation is raging? It makes no sense whatsoever.

            Did anything they did over the past 3-4 years make any sense?

  6. ‘Silicon Valley Bank has been a ‘longtime supporter of you, the venture capital community companies, and so the last thing we need you to do is panic,’ he added, saying what no one ever wants to hear from the head of their bank.”

    He who panics first, panics best.

  7. ‘The young family bought the home in 2022’

    Right at the top. Winnahs!

    ‘but their dream quickly turned into a nightmare when they received this year’s property tax bill. ‘Last year, our tax was $249 per month, but this year, from March, they say that our property tax will be $443, so it is almost double,’ she said. ‘I think we can’t afford this. Everyone’s dream is to buy a home in Canada and now no one can afford this’

    You couldn’t give me one of those gottforsaken igloos Goral.

    1. Lemme guess: these lemmings voted for their WEF overlords, and get all their “news” and information from globalist media outlets.

    3. She is a speculator, who had no business buying a house without any contingency funds. The increase is less than 200 p.m. Why it is about a months rent! Cheaper than renting indeed.

  10. ‘We actually looked to sell probably three or four months ago – it had nothing to do with interest rates going up – we were just a looking at a different lifestyle avenue and it was still a strong market,’ he said. ‘But property in my area since then has gone down between $100,000 and $200,000. It’s definitely a concern as … my wife and I are putting everything into the place so we don’t have to sell. But at the end of day, if that’s what we need to do to keep everyone happy and healthy, that is what we need to do’

    Wa? After winning that bidding wars, yer just gonna give it away Jason? For shame!

    1. “But property in my area since then has gone down between $100,000 and $200,000. It’s definitely a concern as … my wife and I are putting everything into the place so we don’t have to sell.”

      Keep bailing…save your house!
      https://ibb.co/KjtRRdT

      1. People will give up their car before the house. 20% of car buyers owe more than $1000 per month on car payments. Used car prices are crashing first. Then homes will continue down.

  12. ‘There are 800,000 mortgage holders in Australia who are facing a ‘mortgage cliff’ as they roll off ultra-low fixed rates, according to the RBA, with one-fifth of loans seeing their fixed rates ending this year. It revealed 15 per cent of all homeowners on variable mortgage rates would see their spare cash flow turn negative – meaning they wouldn’t earn enough money to cover the mortgage, let alone buy food’

    We keep having to revisit this issue: if you want a shack, forget about eating. Sell the kids. They’ll just whine about wanting food too.

    1. “fixed rates”

      They keep using that word. I don’t think it means what they think it means.

        1. Circa 2004 USA, those “fixed” loans would have been a 5/1 ARM, where the rate is fixed for 5 years and then resets each 1 year. Later on the ARMs had even shorter terms, like 3 years. I well remember an old Credit Suisse graph showing all the ARM resets from 2007 and peaking in 2011.

          1. Credit Suisse graph showing all the ARM resets

            Wasn’t that regarding the US market? I thought we were talking about Australia here.

        2. The rates actually are fixed, just for 5 years. Subtle difference between rate and term.

          That’s not a fixed rate, that’s an adjustable.

          1. A fixed rate cannot also be an adjustable one at the same time. The key is that the loan is for five years, then you make a new loan if you can. Fixed is what it is.

            There is a subtle difference between the interest rate and the term of the loan. They are not the same thing.

          2. There is a subtle difference between the interest rate and the term of the loan. They are not the same thing.

            Filed under DUH. But what I am saying is a calling a loan which has a 5 year rate lock that converts to a variable rate for the next 25 years is not a fixed rate loan, it’s essentially an ARM as oxide has highlighted.

          3. Go ahead and call the fixed rate loan an ARM. What you then call the ARM is anybody’s guess. No matter, you can see how it is a trap.

            Unfortunately, these loans do not convert to anything automatically. Taken for granted probably, but not automatic. My understanding is that you then need to qualify for the next 5 year loan, or bye bye.

            I am entirely grateful that I (we) do not have to fear these debt traps and only worry about day to day smallish problems.

          4. Unfortunately, these loans do not convert to anything automatically.

            That is not true at all, which is why I am calling them by what they really are – adjustable. After the brief period of time they are “fixed,” they automatically convert to variable. We’re talking Australia here, not US, so their terminology is bogus.

          5. these loans do not convert to anything automatically.

            I see I’m wrong about that part, and if at the end of your fixed rate loan you do not qualify to refinance the bank will tell you what interest rate you must pay to hang in there. Looks like they call it “rolling off”.

          6. To me, the logical (American) understanding of “fixed” is that it’s fixed for the full time period of the loan, not just a piece of it. It just surprises me that the Aussies can’t seem to grasp this. Yeah, great, you have a “fixed” rate for five years, but what are you going to do Year 6? You still owe most of the loan money.

          7. “A fixed rate cannot also be an adjustable one at the same time. The key is that the loan is for five years, then you make a new loan if you can. Fixed is what it is.”

            This is how mortgages in Canada work, IIRC. In theory, it is supposed to keep the government from having to juggle long term bond returns.

  13. “You will owe own
    nothingbecause you rent everything from the bank at twice the monthly cost.

    Murphy, TX Housing Prices Crater 23% YOY As Dallas/Fort Worth Housing Market Turns Toxic On Soaring Inventory And Mortgage Defaults

  14. ‘It’s an all out bank run.’”

    Waiting for bank runs to become bank sprints. Tik tok, motherf*ckers. Will the Keynesian fraudsters at the Fed finally be exposed for the charlatans and criminals that they are?

  15. ‘It’s a massive f****ing shit show.’ ‘If those accounts get frozen, deals can’t get met, software can’t get paid for—these kinds of delays, even by a few weeks, can be really catastrophic for business,’ a venture investor says

    Long buttered popcorn.

  16. ‘[Owners are] left with no good choices,’ Keith Van Arsdale, CEO of Dallas-based BMC Capital said.’

    I’ll have you know Keith, this is the holy grail of investments. Especially in DFW, where investors are so sure of themselves they have been for years and at this very minute have the largest supply of airboxes about to hit the market. Tens of thousands of them.

    ‘Many owners are being forced to sell their assets rather than take the hit on purchasing a more expensive interest rate cap for a refi loan. The deals going under contract in the market tell you all you need to know — if activity is down, that means prices are too high’

    Forced to sell when prices are sinking like a turd in a well. I recalled in 2015 hearing a radio apartment guru saying they cash out refi’d every single year. Muy rico! Time to pay back all that free money.

  17. “‘Silicon Valley Bank has been a ‘longtime supporter of you, the venture capital community companies, and so the last thing we need you to do is panic,’ he added, saying what no one ever wants to hear from the head of their bank.”

    Remain calm, all is well!

    https://m.youtube.com/watch?v=wWBiLeVy45k

    1. “Why buy a house when prices are falling? Rent it for half the monthly cost. Buy it later… after prices crater…. for 70% less.”

      …and keep those hooves trimmed.

      Trimming donkey hooves

      Most donkeys will require a foot trim every 6-10 weeks, but care should be taken with older donkeys who might struggle to lift their limbs. You should aim to keep limbs as low as possible during trimming.

      If a donkey’s foot becomes overgrown you should obtain a radiograph prior to trimming to check for any changes to the bone within the hoof. A vet should also be consulted for pain relief.

      https://www.thedonkeysanctuary.org.uk/what-we-do/knowledge-and-advice/for-owners/donkey-hoof-care

  19. ‘I feel lied to and ripped off,’ Mikhekla Hunnicutt told NewsNation. Hunnicutt, a first-time homebuyer, bought her home in St. Louis in October 2020.

    It’s always someone else’s fault, right, Mikhekla? Maybe your emotion-based decisionmaking and galactic sense of entitlement were the real culprits here.

  20. ‘Silicon Valley Bank lost $1.8 billion in the sale of U.S. treasuries and mortgage-backed securities that it had invested in’

    How can you lose so much money in a guberment guaranteed mortgage backed security? Unpossible!

    ‘The bank is also contending with shrinking customer deposits, given that its customer base of largely startups has far less money right now to park at a financial institution’

    ‘It’s like the end of ‘Animal House.’ Don’t panic? Now, I am panicking, watching your broadcast’

    Year after year of hair brained money hemorrhaging ‘concept stocks’ came back to bite yer a$$? Why any minute a self flying taxi is gonna drop a can of almonds on my front door step. Next thing you’ll tell me that steaming pile of shack flippers is losing money.

  21. ‘I’m still very proud of myself that I did it, but I am disappointed that I feel kind of taken advantage of.’”

    ZERO personal accountability. You’re an idiot and a cautionary tale, Kay.

    1. “…but I am disappointed that I feel kind of taken advantage of.”

      Good thing nature made your exit of smooth muscle.

  22. Bitcoin, ether fall after go-to crypto bank Silvergate announces liquidation
    Published Thu, Mar 9 2023 7:35 AM EST
    Updated Thu, Mar 9 2023 4:18 PM EST
    Tanaya Macheel
    Silvergate Capital shares plummet as crypto bank announces plan to shut down

    Crypto prices fell Thursday after Silvergate, a bank that has been at the center of the industry’s growth, made a decision to shut down.

    Bitcoin slid 7% to $20,474.50, according to Coin Metrics. Ether lost about the same amount and was last trading at $1,440.45.

    The slight move lower began late Wednesday, a few hours after Silvergate Capital announced it will wind down operations and liquidate its crypto-friendly bank.

    The relatively small size of the move indicates that cryptocurrency investors priced the news in last week when the company first warned it may not be able to continue operating and it shut down the SEN, or Silvergate Exchange Network, according to Conor Ryder, research analyst at Kaiko.
    …
    https://www.cnbc.com/2023/03/09/bitcoin-ether-fall-after-go-to-crypto-bank-silvergate-announces-liquidation.html

    1. “Bitcoin slid 7% to $20,474.50, according to Coin Metrics. Ether lost about the same amount and was last trading at $1,440.45.

      The slight move lower began late Wednesday, …”

      A 7% loss is a mere flesh wound in the cryptoverse.

    2. Is this where the expression ‘Liar, Liar, pants on fire’ comes from?

      Day job must be in the REIConplex.

  24. They had at least 10 interested buyers. Now it’s all crickets.

    Another “oh dear” moment in time.

  25. Property taxes. Your property taxes are paying for this.

    6,000 Public Schools in the U.S. Hide Students’ Gender Status from Parents (3/9/2023):

    “A watchdog group has reported that nearly 6,000 public schools across the United States have implemented some sort of policy that prohibits the schools from informing parents when their children decide to “change” their gender or gender identity.

    As reported by the New York Post, the list compiled by Parents Defending Education (PDE) covers 5,904 schools across 168 districts, which accounts for at least 3.2 million students in total. Such policies forbid staff from telling parents about their children’s gender identity without the student’s permission, even if the children are underaged.

    Included on the list are two of the largest school districts in the country, Chicago Public Schools (CPS) and Los Angeles Unified School District (LAUSD). Other major cities with school districts on the list include Washington D.C., San Francisco, Seattle, Portland, and Baltimore. States that are affected by this policies range from Alaska and Idaho to California and New York.

    PDE’s list “only begins to scratch the surface of what is taking place behind closed doors in America’s schools,” said the group’s president Nicole Neilly. “This investigation shows that parental exclusion policies are a problem from coast-to-coast, and that living in a red state doesn’t mean that families are automatically shielded from this issue.”

    https://amgreatness.com/2023/03/09/6000-public-schools-in-the-u-s-hide-students-gender-status-from-parents/

    Whatever happened to math and reading?

  26. SVB Financial Group (SIVB) $267 to $37

    106.04-161.79 (-60.41%)
    At close: March 9 04:00PM EST
    37.00 -69.04 (-65.11%)
    Pre-Market: 8:31AM EST

  27. ‘But property in my area since then has gone down between $100,000 and $200,000.

    Fictitious valuations created by fake Fed confetti-money. Easy come, easy go.

  28. Markets
    Published March 8, 2023 9:48am EST
    Stock market will crash in 60 days, best-selling author on Lehman collapse warns
    The Bear Traps Report founder Larry McDonald predicts S&P earnings will be the trigger
    By Kristen Altus FOXBusiness
    The Bear Traps Report founder Larry McDonald reacts to Federal Reserve Chairman Jerome Powell’s testimony to Congress, previews the February jobs report and discusses a potential stock market crash.
    The stock market will crash in 60 days: Larry McDonald

    The Bear Traps Report founder Larry McDonald reacts to Federal Reserve Chairman Jerome Powell’s testimony to Congress, previews the February jobs report and discusses a potential stock market crash.

    After Federal Reserve Chair Jerome Powell indicated the bank isn’t finished raising rates, one market expert has warned a crash could come in a matter of days.

    “They’re playing catch up, and while they were doing quantitative easing in 2021, inflation started to rage and now they’re trying to catch up,” The Bear Traps Report founder Larry McDonald said Wednesday on “Mornings with Maria.”

    “Our 21 Lehman systemic risk indicators that look at equity and credit point to one of the highest probabilities of a crash in the stock market looking out 60 days,” McDonald, who is also known for writing a best-selling book on the Lehman Brothers collapse, cautioned.

    The withdrawal of capital from middle-class families has been “spectacular,” McDonald argued, as the Fed continues its most aggressive rate hike campaign since the 1980s to crush decades-high inflation. Although the consumer price index has slowly fallen from a high of 9.1% notched last June, it remains about three times higher than the pre-pandemic average.
    …
    https://www.foxbusiness.com/markets/stock-market-crash-60-days-best-selling-author-lehman-collapse

    1. The withdrawal of capital from middle-class families has been “spectacular,”

      Hate to break it to you Mac, but borrowed money isn’t “capital”.

  29. You will live in the tunnel.

    Police find group of people living in tunnel under Highway 58 flyover in Wheat Ridge (3/9/2023):

    “A group of people have been trespassing and living in a tunnel underneath the State Highway 58 flyover near Interstate 70 in Wheat Ridge, and authorities are now working on cleaning out the tunnel, which police say has become a “dangerous” situation.

    A Wheat Ridge community services officer was the first person to spot this issue — he saw somebody climb into the tunnel that runs underneath the flyover and followed them to the tunnel. Police determined that the individuals used an access point that CDOT would have used to inspect the flyover.

    Police said the situation was “dangerous” and inaccessible to CDOT, and the tunnel needed to be cleaned out. It was full of trash and human waste, and had a makeshift kitchen and place to hang clothes, police said.”

    https://www.denver7.com/news/local-news/police-find-group-of-people-living-in-cdot-tunnel-under-highway-58-flyover-in-wheat-ridge

      1. The great thing about dating homeless chicks is that after the date is over, you can drop ’em off anywhere.

  30. The young family bought the home in 2022, but their dream quickly turned into a nightmare when they received this year’s property tax bill. ‘Last year, our tax was $249 per month, but this year, from March, they say that our property tax will be $443, so it is almost double,’ she said.

    No one ever said Lil’ Fidel’s socialist agenda was self-funding.

  31. “…especially those who bought their homes sight unseen. ‘I feel lied to and ripped off,’ [said] Mikhekla Hunnicutt…” “…Not long after moving in with her husband, they started having major plumbing issues. ‘This has been dragging on for a couple of years now. And I’m very frustrated by it. I had to take out a large loan to get the repairs done,’ she said…”

    Where does one even begin with people like this?

    Oh, let me guess, that ‘bought sight unseen’ purchase also waived all inspections and liability.

    “…I feel lied to and ripped off,’ [said] Mikhekla Hunnicutt…”

    I’m shocked I tell you, just shocked…

    1. In the videos post earlier today, the Seattle realtor was proud to state that there were many offers (7?) on a house — with no inspection condition.

      Good times are back – and no-one will ever get hurt again.

  33. A reader sent these in:

    “There is no exit from this until Jerome Powell creates a recession, ’til unemployment goes up, and that is when the Fed rates will stop being hiked,” Translation: More pain 😥

    https://twitter.com/WallStreetSilv/status/1633580606310236161

    2 yr treasury bond is at 5%. Last time this happened was 2007-2008 just before the Great Financial Crisis. 🤨

    https://twitter.com/WallStreetSilv/status/1633516678901530625

    Bank of Canada says inflation will be back to 3% mid-year. The BOC was wrong the past 14 forecasts, so it has to be right this time.

    https://twitter.com/StephenPunwasi/status/1633658227555459075

    There is no f*cking way inflation inflects meaningfully and durably with Unemployment under 4.5%. And even then, you would need rates above 6% to get inflation down to anything sensible like 3%. Those – especially sh$t journos – making ideological dances around this are 🤡

    https://twitter.com/INArteCarloDoss/status/1633908991498567709

    *FOUNDERS FUND ADVISES COMPANIES TO WITHDRAW FUNDS FROM SILICON VALLEY BANK

    https://twitter.com/GrahamStarr/status/1633953043883466752

    Don’t worry guys Silicon Valley Bank is still solvent in the metaverse

    https://twitter.com/ParikPatelCFA/status/1634031165773590528

    Narrator: “It turns out they could not value homes successfully.”

    https://twitter.com/GRomePow/status/1633985273179824128

    Has the world collectively fallen out of love with #Airbnb? “…the market in short term rentals appears to be slowing” “According to AirDNA, occupancy rates fell in 31 of the top 50 largest US short-term rental markets in the second half of last year”

    https://twitter.com/texasrunnerDFW/status/1634023675245592576

    When does Debit Sus get theirs?

    https://twitter.com/Mayhem4Markets/status/1634009307925602304

    This is most concerning to the, “they can weather the storm”, theory. “At SVB, unrealized losses had been piling up throughout last year and were visible to anyone reading its financial reports.”

    https://twitter.com/airjoshb/status/1633975987200466945

    This is the Ponzi they all rely on

    https://twitter.com/GRomePow/status/1633991896128438272

    Several top VC firms, including Coatue and Founders Fund, today told some portfolio companies to seriously consider pulling $$ out of Silicon Valley Bank. Others report having trouble doing so.

    https://twitter.com/danprimack/status/1633958448093347841

    Silicon Valley Bank also deserves credit for Opendoor. Without their support in the beginning, it would have been nearly impossible to prove we could value homes successfully via a model.
    11:01 AM · Sep 16, 2020

    https://twitter.com/rabois/status/1306261846022737921

    Black Knight on Thursday announced that LoanCare will implement its Loss Mitigation solution to support borrower payment assistance programs.

    https://twitter.com/HousingWire/status/1633966141839413248

    The mortgage payment needed to buy the median priced home for sale in the US has moved up to $2,563, a new all-time high. A year ago it was under $2,000 and three years ago under $1,500.

    https://twitter.com/charliebilello/status/1633959418034372609

    Rich people begging Federal Reserve welfare round 8

    https://twitter.com/GRomePow/status/1633954626700734465

    Taxpayer money on housing bought MBS for the Fed’s balance sheet, which in turn propped up home values. Yeah, we can change NOO tax laws, but how about we lower conforming loan limits? How about we keep interest rates high until speculators understand the Fed put is dead?

    https://twitter.com/texasrunnerDFW/status/1633914743126646784

    Talking to a lender today. People are refinancing from 3 or sub 3% rates to 7.5% to use house as an ATM. Spend spend spend. Did people not learn anything from the GFC 🤦🏻‍♀️

    https://twitter.com/JulieChangRE/status/1634023257019125760

    Banks don’t blow up in Bull markets. Just in case there’s some bulls out there

    https://twitter.com/highyield6/status/1633964611165642752

    Bull market tings

    https://twitter.com/eliant_capital/status/1633901949065019392

    Last year about twice as many died as were born in Japan

    https://twitter.com/Mayhem4Markets/status/1634018669930872834

    The Kobeissi Letter

    Liquidity is disappearing all around the board:
    1. S&P 500 lost $600 billion in 2 hours
    2. Crypto markets down $40 billion today
    3. Four biggest US banks down $50 billion today
    4. Bond markets trading like meme stocks
    All the buyers are gone as inflation is here to stay.

    https://twitter.com/KobeissiLetter/status/1633924623086526465

    The Kobeissi Letter

    BREAKING: US stocks and crypto have now lost over $2 trillion in market cap in under 24 hours. Stock market futures just hit a 2-month low and #Bitcoin broke below $20,000. Meanwhile, a collapse of Silicon Valley Bank would mark the 2nd largest bank failure in U.S. history.

    https://twitter.com/KobeissiLetter/status/1634044757973278724

    The Kobeissi Letter

    Timeline of Silicon Valley Bank, $SVIB, Collapse:
    1. Rumors emerge that SBV faces interest rate risk on $91 billion in bonds
    2. SVB announces firesale of $21 billion bond portfolio
    3. Bond portfolio sale takes a massive $1.8 billion loss
    4. SVB announces $2.3 billion share sale to cover bond losses
    5. Bank run begins as account holders cash out balances above $250,000 FDIC insurance threshold
    6. Credit agencies cut SVB’s credit ratings
    7. Pressure spreads to other U.S. banks erasing $80 billion in market cap today alone
    8. $SVIB stock falls 60% today, another 22% after hours
    If SVB fails, it would be the 2nd largest bank failure in US history and the largest failure since 2008.

    https://twitter.com/KobeissiLetter/status/1634018136537047042

    CarDealershipGuy

    $10K for 2004 Tacoma with 300k miles 😩

    https://twitter.com/GuyDealership/status/1633996664934375431

    1. “New information published by journalists Matt Taibbi and Michael Shellenberger ahead of their testimony to the Select Subcommittee on the Weaponization of the Federal Government today has revealed that government entities flagged “anti-Ukraine narratives” to Twitter for censorship.

      The new information was provided in a new batch of “Twitter Files” (internal documents that highlight how Big Tech often censored at the behest of the federal government, state-affiliated entities, or the legacy media) and their opening statements.

      The new Twitter Files thread thread included a previous email from the “The Virality Project” urging action against “stories of true vaccine side effects” and “true posts which could fuel hesitancy.”

      https://reclaimthenet.org/state-entities-anti-ukraine-narratives-twitter-censorship

    2. They do a lot of hiding behind… “There’s an ongoing investigation” even if the ongoing investigation has been going on for 3 years in order to hide the crimes of the family they’re investigating.

    1. Don’t think a country can survive when:
      1. Rich people are so greedy
      2. Masses are so dumb
      3. Politicians are so bought
      4. Technocrats are so evil

  39. Proud Boys J6 Sedition Trial Halted After Leaked Chat Logs Show FBI Agent Said Her Boss Ordered Her to ‘Destroy Evidence’

    By Chris Menahan | Information Liberation Friday, March 10, 2023

    The feds’ political persecution of the Proud Boys took a wild turn after unintentionally leaked chat logs from FBI Special Agent Nicole Miller revealed she said she was ordered by her boss to “destroy” “338 items of evidence.”

    The leaked chats also suggest Miller failed to reveal relevant communications to the defense, potentially spied on privileged attorney-client communications and was asked by another agent to “edit out that I was present” during a meeting with a Confidential Human Source Informant.

    https://www.newswars.com/proud-boys-j6-sedition-trial-halted-after-leaked-chat-logs-show-fbi-agent-said-her-boss-ordered-her-to-destroy-evidence/

  40. A defendant in the Proud Boys trial over Jan. 6, 2021, charges moved on March 9 to dismiss the case, after some footage from the day of the breach was shown for the first time.

    Dominic Pezzola is one of the Proud Boys members on trial for obstruction of an official proceeding and other charges. The newly disclosed footage, shown on Fox News this week, “is plainly exculpatory,” Pezzola’s lawyers said in the new motion.

    “It establishes that the Senate chamber was never violently breached, and—in fact—was treated respectfully by January 6 protestors,” the motion reads.

    Among the clips Fox’s Tucker Carlson broadcast was one of Jacob Chansley, another defendant who’s serving a jail sentence after pleading guilty, walking around accompanied by police officers. The officers didn’t stop Chansley and even tried to open doors for him. He eventually made it into the Senate chamber, where he and others later knelt and prayed. Chansley, during the prayer, gave thanks to the officers for “letting us into the building.”

    Pezzola also entered the Capitol, and prosecutors have argued that he and others being inside forced Congress, which was certifying electoral votes from the 2020 election, to go into recess.

    However, the new footage shows that members “could have continued proceedings,” Pezzola’s attorneys said.

    “It was not Pezzola or codefendants who caused the Congress to recess,” the attorneys said. “Congress interrupted its own proceedings.”

    The lawyers are asking U.S. District Judge Timothy Kelly, a Trump appointee overseeing the case, to dismiss it. He’s asked in the motion to declare a mistrial if he rejects that request.

    Prosecutors must not withhold evidence that can be exculpatory. The rule was crystallized in Brady v. Maryland, a 1963 Supreme Court decision.

    “Suppression by the prosecution of evidence favorable to an accused who has requested it violates due process where the evidence is material either to guilt or to punishment, irrespective of the good faith or bad faith of the prosecution,” the decision states.

    Zachary Rehl, another Proud Boys defendant, requested all information regarding Congress going into recess on Jan. 6, 2021, in late 2021.

    “While Brady obligations do not extend to the entirety of the government, they do include investigative agencies or agencies closely related who knew or should have known that information would be material to a prosecution arising from their direct involvement. Here the U.S. Capitol Police are directly related and fully aware of the events of January 6, 2021,” lawyers for the defendants said.

    They cited previous court decisions, including one that found that a prosecutor “has a duty to learn of any favorable evidence known to the others acting on the government’s behalf in the case, including the police.”

    “We will respond through the court,” a spokesperson for the U.S. Attorney’s Office for the District of Columbia told The Epoch Times via email.

    The U.S. Capitol Police didn’t respond to a request for comment.

    Attorney Albert Watkins, who represented Chansley, said on Fox on March 8 that the footage the media outlet aired this week hadn’t been provided to him.

    “The government knew that Jake had walked around with all of these police officers. They had that video footage. I didn’t get it. It wasn’t disclosed to me. It wasn’t provided to me,” Watkins said. “They had a duty, an absolute duty, with zero discretion to provide it to me so I could share it with my client.”

    Another development supports a dismissal, according to the new motion.

    FBI special agent Nicole Miller is being accused of hiding a tab in a spreadsheet that showed some of her emails.

    Miller was testifying on March 8 when Nick Smith, a lawyer representing Proud Boys member Ethan Nordean, revealed the secret tab, leaving more than one thousand hidden rows of messages, Nordean’s attorneys said in a separate filing.

    Miller wrote in one email, “My boss assigned me 338 items of evidence i [sic] have to destroy.”

    In another, an agent wrote to Miller that she should go into a confidential human source report and “edit out” that an agent was present, according to the filing.

    The hidden emails show that Miller “admitted fabricating evidence and following orders to destroy hundreds of items of evidence,” Pezzola’s lawyers said. “If justice means anything, it requires this case to be dismissed.”

    The FBI declined to comment.

    Erik Kenerson, an assistant U.S. attorney prosecuting the case, said in court on March 8 that even if there were missing messages, the defense could have asked the government to produce them. He said prosecutors decide which messages to provide to the defense, so it wasn’t appropriate to imply that the agent hid them.

    https://www.theepochtimes.com/defendant-moves-to-dismiss-jan-6-case-based-on-newly-disclosed-footage-fbi-testimony_5110900.html

    1. it wasn’t appropriate to imply that the agent hid them.

      Then why is it called a “hidden tab”?

  41. The U.S. will send a Patriot air defense system to Ukraine. How will it help?

    Updated December 21, 202212:46 PM ET

    The U.S. will send a Patriot surface-to-air missile system to Ukraine to bolster its air defense capabilities, a move that represents one of the most advanced defense systems that the Americans have so far provided to support Ukraine since Russia invaded last winter.

    https://www.npr.org/2022/12/21/1144662505/us-ukraine-patriot-missile-system

    I guess the high $ Patriot air defense system ain’t working so good.

    Russia pummels Ukraine with array of high-tech weaponry in nationwide assault

    By Rob Picheta, CNN
    Updated 2:08 AM EST, Fri March 10, 2023

    CNN
    —
    Russia showered Kyiv, Lviv and other major cities across Ukraine with what officials said was an unprecedented array of missiles on Thursday morning, stepping up its assault on the entire country as a sluggish ground war drags on in the east.

    A total of 81 missiles were used in a “massive attack” on Ukrainian infrastructure, including six Kinzhal ballistic missiles that have the ability to elude Kyiv’s air defenses, the Ukrainian military said.

    “The attack is really large-scale and for the first time using such different types of missiles. We see that this time as many as six Kinzhal were used. This is an attack like I don’t remember seeing before,” Yurii Ihnat, spokesman for the Air Force Command of Ukraine, said on Ukrainian television Thursday.

    https://www.cnn.com/2023/03/09/europe/ukraine-russia-missile-attack-kinzhal-intl/index.html#:~:text=Russia%20showered%20Kyiv%2C%20Lviv%20and,drags%20on%20in%20the%20east.

    1. If Z was any smart, he would have figured out by now that he aint winning the war with the junk Braindead is sending.

      1. He doesn’t intend to win. He is getting rich off the death and destruction. Will he get out alive?

        1. I want to see Zelensky taken alive and into custody of Russia. And I don’t care what happens to him after that.

          Zelensky is a war criminal.

        2. “Will he get out alive?”

          Likely already has a comfortable retirement mansion in one of Israel’s fortified neighborhoods for upper echelon.

    2. If I buy a hammer drill and it doesn’t work I bring it back, explain what the problem was and get my money back.

      This hammer drill only spins, there is no jackhammer to it and it won’t drill through concrete so I need my money back.

      That’s the deal.

      Is it the same with the Patriot air defense system?

      I used your Patriot surface-to-air missile system and the cities in my country got leveled so I need my money back.

      2. “…so I need my money back.”

        Wait a minute…you didn’t pay for them.

        But we do thank you for supplying the blood and guts while we work out the kinks and improve our products.

        1. “Wait a minute…you didn’t pay for them.”

          Damn!

          I forgot about that. Now we need to give Ukraine another $5 billion for floor scrapers.

          “It’s been our privilege to help. You have a remarkable president, Mr. Zelensky, who’s done an outstanding job and we simply wish to keep supporting the people of Ukraine for as long as it takes.”

          Joe Biden

  42. Stock trading halted; Silicon Valley Bank tumble sends financial tremblor through tech industry
    sanfrancisco

    UPDATED ON: MARCH 10, 2023 / 6:37 AM / CBS/CNN

    SAN JOSE — SVB Financial Group’s announcement that it needed to sell billions of dollars of assets to make its customers whole continued to send Wall Street into panic mode.

    Shares of SVB were halted Friday morning after falling more than 60% in premarket trading. The stock tumbled 60% Thursday.

    https://www.cbsnews.com/sanfrancisco/news/breaking-stock-trading-halted-silicon-valley-bank-tumble-sends-financial-tremblor-through-tech-industry/

  43. Lauren Boebert Praises Teen Moms as She Makes Grandma Announcement:

    “Boebert was talking at an event hosted by conservative non-profit Moms for America, as per a video shared by Twitter account PatriotTakes. She said that one of her four sons, 17-year-old Tyler, and his girlfriend are expecting a baby boy.

    “Now, any of you who have young children who are giving life, there’s some questions that pop up. There’s some fear that arises,” the 36-year-old Colorado congresswoman said.

    https://www.newsweek.com/lauren-boebert-praises-teen-moms-she-makes-grandma-announcement-1786582

    The /r/Denver Reddit thread about this should be pretty gloat, that’s what they do best, gloat and seethe.

  44. Yahoo Finance
    Jay Powell now has another problem: Morning Brief
    Myles Udland
    Fri, March 10, 2023 at 2:31 AM PST·4 min read
    Friday March, 10, 2023

    For the last year, the Federal Reserve has tried to accomplish one goal, using one tool — lower inflation by raising interest rates.

    The result has been benchmark interest rates rising by 4.5% in a year and headline inflation falling from a peak of 9.1% in June to 6.4% as of January. As Fed Chair Jerome Powell reiterated in testimony on Capitol Hill this week, there is still work to be done for the Fed to achieve its goal.

    But over the last week, acute challenges at two banks have surfaced another issue now facing the Powell Fed. And that is the stability of the financial system.

    On Wednesday, Silvergate Capital (SI), which had become one of the crypto industry’s biggest banking partners, announced it will liquidate and wind down operations after suffering significant deposit outflows from its digital asset clients.

    That same day, Silicon Valley Bank (SIVB), the preferred banking partner of the venture and startup worlds, announced it would take a $1.8 billion loss while liquidating its entire short-term securities book and raising $2.25 billion fresh capital.

    In a letter to investors, CEO Greg Becker assured investors the bank had “ample liquidity,” and said it took these actions “because we expect continued higher interest rates, pressured public and private markets, and elevated cash burn levels from our clients as they invest in their businesses.”

    The Information reported Thursday afternoon that Becker told investors on a call, “I would ask everyone to stay calm and to support us just like we supported you during the challenging times.”

    Few statements have a tougher audience than investors being told to remain calm in times of market stress.
    …
    https://news.yahoo.com/jay-powell-now-has-another-problem-morning-brief-103100176.html

      1. Your pivot ain’t coming, butters. You have been wrong the whole time. More rate hikes, coming right up.

  45. LIVE UPDATES
    Updated Fri, Mar 10 2023 11:03 AM EST
    S&P 500 falls as Silicon Valley Bank woes hit banking shares: Live updates: Live updates
    Samantha Subin
    Alex Harring
    We are still worried about effects of monetary tightening near term, says Nuveen CIO Saira Malik

    The S&P 500 fell again on Friday as banking shares came under pressure in the wake of troubles at Silicon Valley Bank, a lender to the tech sector facing big bond losses.

    The S&P 500 dipped 0.1%, and the Nasdaq Composite fell 0.2%. The Dow Jones Industrial Average added 53 points, or 0.17%.

    SVB Financial tumbled again on Friday, dropping another 63% in the premarket before being halted through the open. The stock has been under massive pressure after the company announced plans to raise more than $2 billion in capital in a bid to offset losses from bond sales.

    Citing sources, CNBC’s David Faber reported, reported that the bank was in talks to sell itself after attempts to raise capital failed. Rapid deposits outflows, however, are outpacing the sale process, complicating the ability to realistically assess the bank.

    The crisis at SVB hurt other banks as well as the broader financial sector, with the SPDR S&P Regional Banking ETF down about 3.5% and on pace for its worst week 2020. Several banks were halted repeatedly Friday, including First Republic, PacWest and crypto-focused Signature Bank, which were last down by 10% to 23%.

    Bellwethers Bank of America and Goldman Sachs fell by smaller amounts, losing 1% and 2.4%, respectively.

    Wall Street is coming off a sharp downturn, with the Dow losing more than 500 points Thursday. For the week, the Dow is down 3.6%, on pace for its worst week since September 2022, while the S&P 500 is off 3.7%.
    …
    https://www.cnbc.com/2023/03/09/stock-market-today-live-updates.html

    1. “Several banks were halted repeatedly Friday, including First Republic, PacWest and crypto-focused Signature Bank, which were last down by 10% to 23%.”

      What does ‘halted’ mean in this context?

      And just how deep in craptocurrency is the banking sector?

        1. “Several banks were halted repeatedly Friday,…”

          Does the FDIC intervene multiple times in the same day?

  46. ‘They don’t do anything:’ Oakland businesses frustrated with police response to burglary surge
    KTVU FOX 2 San Francisco
    Mar 7, 2023
    Oakland business owners say police aren’t doing enough to investigate burglaries as the city is in midst of a surge of commercial break-ins. Crime data from the Oakland Police Department shows commercial burglaries went up 76% last year.

    https://www.youtube.com/watch?v=mwF3gcM0NBs

    4:51.

    1. Another “food desert” coming right up!

      How long until all metro enclaves like this are reduced to “no go” zones, barren wastelands inhabited only by the homeless, criminals and drug addicts?

    1. There won’t be a pivot until late summer at least.

      In fact the stock selloff is due to the strong jobs report. Strong jobs –> strong economy –> better to RAISE rates to cool things down –> stonks fall on the prospect of higher interest rates. Powell actually WANTS a correction in the S&P, as part of his so-called soft landing.

      1. Butters is one of those weird rate hike denier/pivot people. He must be getting killed by the rate hikes in some way.

    2. One hour to go. The PPT had better start the afterburners, because it’s still a long way up.

    3. I want to know how the people take back their governments from the One World Order / Great Reset insurrection by the .0001%.
      We are in a captive defense position Just taking one blow after another by these Entities that want to enslave us , deprive us , and even genocide us by fake vaccine and bio weapons.
      The seeds of take over started over a hundred years ago with that miserable evil Rockerfeller and Rothschilds and other fraudsters that have been operative in this sabotage and highjacking of Government by the People.
      Now we have a miserable traitor in the White House that is advancing the end game agenda of anti humanity psychopaths that want to enslave and genocide the US Citizens.
      The evidence shown in a insurance report
      show a excess morality number of 574
      thousand people under age 44 following the roll out of vaccines . ..
      The 574 thousand doesn’t include over 44 who died. The 0- 44 age bracket is usually the lowest mortality group. .
      .This excess death numbers exceed 1/2 million died WW2 but censored news doesn’t report on it.
      And the fake vaccines are still on market the fake DC government is in bed with our enemy. . ..and how do we stop this?

      1. and how do we stop this?

        We all know how. And it isn’t pretty. Let’s just say that we won’t be voting out way out of this.

    4. I will go out on a limb say stonks will close green today.
      Pivot here we come!

      Your pivot isn’t coming, butters. More rate hikes are coming.

    5. You missed that call by a mile, pal.

      Risk asset HODLers are screwed from here on out, regardless of what the Fed does. If they slow rate hikes, investors will infer that the Fed sees economic storm clouds on the horizon, and will run for cover. And if they don’t slow rate hikes? Well…

    3. i wonder if those people who got out this morning at $37 a share will the trades will be canceled?

  50. How do you say tastes like chicken in Spanish?

    “Illegal Aliens Kill Bald Eagle and Plan to Eat It: A Symbol of National Decline?”

    Border Hawk
    @BorderHawkNews
    ·
    This case is a representation of what’s occurring in the entire US

    These Hondurans represent millions of illegals who have been allowed into our country

    They disrespect our laws & consume our resources

    They are enabled to do so by our own government

    borderhawk.blog
    Illegal Aliens Kill Bald Eagle and Plan to Eat It: A Symbol of National Decline?
    The bald eagle (Haliaeetus leucocephalus) is America’s national symbol. It appears on the Great Seal of the United States, clutching in its talons 13 arrows and an olive branch with 13 leaves, and in…
    10:29 AM · Mar 9, 2023
    ·
    1,774
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    https://twitter.com/BorderHawkNews/status/1633852391270371331?s=20

      1. Gracias.

        I will use that on the job site along with… siera la puta porta 🙂 (please allow for spelling)

  52. It’s Friday.. and the Dow. It’s cratering. It’s cratering but good! 😂😂😂💕

    2. “It’s cratering but good!”

      There goes the 37th floor pied-à-terre and leggy mistress. 🙁

  54. Currently watching CNBC Closing Bell: Overtime – the guest just said SVB is a “black swan event” and thousands of startups can’t make their payroll TODAAAAY (can you imagine working for the past 2 weeks for freeeeee? Mortgages are about to be defaulted on…) and will need to furlough employees starting Monday because they won’t make payroll in the coming weeks. These startups had ALL their money at SVB. The guest also said nothing like THIS (SVB closure) has never happened before…

    WOW! FASCINAAAATIIIING! 😱

    Professor Bear? Are your eyes peeled to the TeeVee? Does everyone have their popcorn ready?…🍿

    1. Currently watching CNBC Closing Bell: Overtime – the guest just said SVB is a “black swan event”

      A “black swan event” is something nobody could have seen coming, something that you cannot prepare for because there was no way to possibly even forecast its existence much less the threat.

      Any person with even a modicum of common sense could have read SVB’s financial reports and seen that they were struggling badly. Calling it a “black swan event” is retarded.

    2. thousands of startups can’t make their payroll TODAAAAY

      Startups are the fun and cool places to work during the fat times. Cool projects, big paychecks, perks that mere mortals can only dream about. Good times.

      And then, with little to no warning, it ends. The money suddenly runs out and next thing you know they close their doors. Their cloud based computing comes to a grinding halt because they were already behind on paying Amazon,, Google or Microsoft.

      Imagine, being a WFH type, and suddenly the VPN goes down and you can’t reconnect. Slack also stops working. You try email but the subscription service Microsoft Exchange is also unresponsive. You call coworkers on your cell phone, but they also don’t know what’s happened.

    1. I’ve noticed that those running the “biggest smoldering pile of debt in the world” country have also been buying gold for some years.

      Big debtors holding speculative assets are a dangerous thing. When they have to go to the pawn broker, things might get interesting.

  59. ‘We actually looked to sell probably three or four months ago – it had nothing to do with interest rates going up – we were just a looking at a different lifestyle avenue and it was still a strong market,’ he said. ‘But property in my area since then has gone down between $100,000 and $200,000′

    The Most Beautiful Morricone Theme Ever… THE ECSTASY OF GOLD on Classical Guitar!
    Luciano Renan
    8 years ago

    https://www.youtube.com/watch?v=-5DB51awn2U

    3:38.

  60. ‘Kay Kingsman, who bought her first home in Portland, Oregon, in August 2021, said she felt swept up with everything at the time of purchasing, but on move-in day, she said there were already problems with the house. ‘I noticed the worst smell of my life’

    But you won Kay! Sight unseen, but never the less.

  64. Notice how the blame gets heaped on the Fed for raising interest rates.

    Nobody batted an eye when they held the pedal to the metal for ten years running…

    1. The Financial Times
      Silicon Valley Bank
      Silicon Valley Bank’s failure shines light on dangers lurking in higher interest rates
      Pressures driving tech-focused US lender out of business expected to cut into other banks’ profits
      Person walks by a SVB sign
      Silicon Valley Bank had about $209bn in assets with a client base concentrated among tech and healthcare start-ups
      Brooke Masters in New York yesterday

      Silicon Valley Bank’s failure on Friday was an extreme consequence of broad trends squeezing profits and clouding the outlook for the banking sector.

      SVB had grown to about $209bn in assets with a client base concentrated among tech and healthcare start-ups. This business proved particularly vulnerable to the impact of rapidly rising interest rates.

      When its tech-focused depositors were hit by a cash squeeze driven by the recent downturn in the sector, they pulled money from their accounts to spend or move in search of higher yields. To help cover the withdrawals, SVB sold bonds in its portfolio. It also sold bonds to buy assets with higher yields.

      But the bonds it was selling had dropped in value because of rising rates, crystallising huge losses. That worried customers of SVB, where 96 per cent of assets were held in accounts that exceeded the Federal Deposit Insurance Corporation’s $250,000 cap on deposit insurance — so they pulled even more money. The regulator announced it was closing down SVB on Friday in the largest bank failure since the global financial crisis of 2008.
      …

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