Chapter 890 – Perfect Storm
Shock.
There is no choice but to turn the whole world upside down.
〈Overnight, a large American bank…〉
〈Silicon Valley Bank filed for bankruptcy.〉
〈The U.S. Department of Justice is said to have begun an investigation into whether there were any problems during the bankruptcy process.〉
The bank goes bankrupt.
Even if you only have a little bit of economic knowledge, you can feel the seriousness.
Why?
Because there was a similar situation.
It sent the whole world into shock and fear.
〈Emergency was raised as speculation emerged that it could become the second Lehman Brothers. 〉
The financial crisis of 2008 comes to mind.
The bankruptcy of a bank became a spark for the world economy.
The situations also overlap.
This is a side effect caused by the Federal Reserve’s sharp interest rate hike.
〈Is the situation that serious?〉
〈First of all, some corrections are needed…, Silicon Valley Bank ranks 16th in the industry. Lehman Brothers was the 4th largest investment bank in the United States.〉
〈Ah~~ I see! 〉
Of course, the scale is small.
It’s not that much of a bomb.
But it’s enough to cause PTSD.
A chain of bankruptcies may occur.
This may not be a problem that ends with just one or two banks.
〈 Of course, being ranked 16th in the United States, it is enormous, but it is unlikely to be at the level of Lehman Brothers…〉
Even if experts reassure you, it is no use.
People are already shaking with anxiety.
That anxiety.
It may become a catalyst that causes another incident.
〈But how did this happen?〉
〈The biggest problem is mobile banking.〉
〈Mobile banking?〉
〈Yes, normally it takes time to withdraw money from the bank…〉
The world has changed.
Click! You can move hundreds of millions or billions of won in one go.
It wasn’t just an advantage.
The moment you hear that the bank is in crisis anytime, anywhere.
〈The rapid influx of withdrawals accelerated the bank run phenomenon.〉
Money is running out
Dozens and millions of people are knocking on bank doors.
Funds dry up.
The bank cannot be maintained.
Although it is a situation that led to bankruptcy.
〈 Wow~ Something terrifying happened. 〉
〈The industry is unanimous that something like this could happen again. The government needs to come up with preventive measures…〉
Similar thing.
It can explode at any time.
No, the finger is already up.
〔American Stock Gallery〕
─Michael Burry A warning to the wrongdoers
─Then of course you say it will be okay. Are you saying it’s fucked up?
─It can be said that the majority of small and medium-sized banks have failed
─Reasons for Silicon Valley Bank’s bankruptcy. Txt
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．
．
What if you are anxious about the bank you are depositing in?
You must be prepared to withdraw money.
─Reasons for Silicon Valley Bank’s bankruptcy. Txt
There were definitely a lot of assets
Most of the assets were held in bonds
Interest rates rose 5% in one year, right?
So, I couldn’t sell it and kept it.
In the meantime, a bank run occurred
I can’t hold on as I run out of cash
└(Oh, I understand completely, Con)
└Um, that’s it.
└Aren’t you saying you’re screwed because you’re owed money?
└It is outrageous that the 16th-ranked bank collapsed without being able to predict an interest rate increase
A similar situation may arise.
No, it is inevitable.
The circumstances are revealed.
There was a reason why it had been quiet for so long.
A behind-the-scenes situation that no one expected.
─It can be said that most small and medium-sized banks have failed
SVB is a Silicon Valley staple
It was a place with a certain name value
They couldn’t manage it?
There is nothing else to see
Just stop lurker Cheonjiim
└If you listen to kids living in the U.S., They say that all their money is being withdrawn from small and medium-sized banks. Next will be the turn of the large banks
Author− ㄹㅇ Fucked
└In the Internet age, it is very easy to have a bank run
└Just like a woman from any country
This comment has been deleted due to accumulated reports!
High interest rates.
In reality, this is good news for banks.
You can earn more interest.
It was too steep.
A side effect that did not exist before was struck by a black swan.
Korean Newspaper− “U.S. Government agrees to fully guarantee deposits at Silicon Valley Bank”
Fact News− 「U.S. Treasury Secretary Yellen: “There is no bailout for the bankruptcy of Silicon Valley Bank”」
Of course we respond.
The U.S. Government provided relief.
But it is true that it is bankrupt.
Investment sentiment is bound to remain cold.
─Then of course you say it will be okay. Are you saying it’s fucked up?
[Runsonman JPG. Jpg]
Biden came out
Rest assured, citizens!
The banking crisis is over. The government will be with you
ㅇㅈㄹYou did it
└(… Frog Cone)
└Fuck you
└Seoul is safe…
└They’re just fucking opening their mouths
There is no problem, right?
Is there any guarantee that it won’t explode again?
I have doubts.
Experts also offer negative opinions.
As fear spreads in the market.
─Michael Burry A warning to the wrongdoers
—————————–±
2000, 2008, 2023 are always the same.
People filled with arrogance and greed take foolish risks and fail. Money is then printed. Because it works so well.
±——————————————–
“Sell”
└Dom Huang Cha!!
└Roughly speaking, the story is that a big short will occur here, and the Fed will release money again
└Is it really shorts?
└Just play the drums you idiot haha
Stimulates the PTSD button.
Even Michael Burry, the protagonist of The Big Short, participates.
Isn’t something really going on?
It is natural to think.
─You don’t know if it’s really fucked up or not?
[First Republic Bank stock price. Jpg]
[Signature Bank stock price. Jpg]
[PacWest Bancorp stock price. Jpg]
Then just look with your eyes
All small and medium-sized bank stocks are hitting the lower limit
└Small ball launched by SVB
└If the valuation loss is reflected, the finances of those holding long-term bonds will be ruined.
└It just needs to not spread into a systemic crisis…
└Some of those places will really explode
No, it’s happening.
Stock market.
Moves faster than anyone else.
There are signs of a huge crash.
The fire may spread.
─What is Lee Chan-wook doing in these times?
[Fiery frog meme. Jpg]
I need to get it quickly, whether long or short
The ants are anxious!!
└ㄹㅇ
└What does the kid who is supposed to be the fastest do in a situation like this?
└Long must have caught it
└Isn’t it just a fucking bite…? …
Investors are just stamping their feet.
While I didn’t know what to do.
Daily News− “Fed Chairman Powell dies… ? ‘Graveyard’ appears on Wall Street”
The biggest news of all-time hits the market.
* * *
There was an omen.
‘Just looking at it historically.’
What if the Federal Reserve raises interest rates?
A bank will inevitably go bankrupt.
It was even steeper.
In just one year, a crazy increase of 5% was achieved.
“Three days ago, Silvergate Bank collapsed. It was such a small bank that people didn’t even notice.”
There must be no side effects.
The economy is creaking here and there.
Interest rate hike and economic recession.
This is also the reason why they follow each other like a set.
“That’s common sense in economics, but…”
“Yes.”
“How did you know and prepare?”
This time is no different.
It will definitely explode.
But about the time and field of explosion.
‘Because changes occur from time to time.’
A representative example is the subprime mortgage crisis.
The Federal Reserve specially manages mortgages (real estate-secured loans).
What if one place is blocked like that?
Another place is bound to explode.
Economic crises have always changed their faces.
“As for SVB’s bond issue… There was no prior signal because it was financially sound.”
It’s worth seeing Sora looking puzzled.
It cannot be known by general methods.
Unusual methods must be used.
In order to predict an economic crisis.
“Do you know what the precursor phenomenon that happens before a bank explodes?”
“CDS premium is soaring.”
“That’s a lagging indicator.”
We need to look at the fundamentals.
This is a phenomenon that repeats itself with every economic crisis.
‘It’s human greed.’
Bankruptcy.
It is inevitable that bank executives know better than anyone else.
Make a decision.
The company cannot be maintained.
Let’s rip open the belly of the goose that laid the golden egg!
“We’re having a performance-based party. The idea is to enjoy some favors with the company’s money.”
It’s a failing company anyway.
The remaining money is scraped together and divided among executives.
There was also the famous subprime mortgage crisis.
The executives of Lehman Brothers.
“You could say it’s a Wall Street tradition.”
“Wow…, All places where people live are the same.”
I ate it all.
The cause of the bank collapse and the size of the company are completely different.
‘Because human reactions are always the same.’
Sudden large performance bonus.
It can be said to be a representative red flag of bank failure.
“After all, humans are fun!”− Death Note Ryuk (Reaper)
It’s worth saying that Ryuk continues to be fun.
All humans have a greedy instinct.
Percussion!
No one can be an exception.
Not to mention the bank man neatly dressed in a suit.
“Is this enough?”
“I think it’s done…”
“Yes.”
“Are you really going to do this?”
Politicians who pretend to be fairer than anyone else are no exception.
When a crisis comes.
‘I will try to protect my position at all costs.’
Lightly turn your palm over.
Retract what you said.
Even your conscience is deceived.
It is packaged with various technical terms that the public cannot understand.
In reality, it’s about making money.
“I have to do it.”
Even if you cover your eyes, there is no such thing as Aung.
At least that mask must be clearly taken off.
—————————–±
『Jerome Hayden Powell』
1953. 02. 04
2023. 03. 13
Worst Fed Chairman of all time
±——————————————–
Powell’s grave is erected.
