2008 started with Lehman brothers and 2023 SVB

[megadheera]

Is it happening? SVB is going to shutdown anta

[futureofandhra]

1 minute ago, megadheera said:

Is it happening? SVB is going to shutdown anta

*FDIC: SVB BANK CLOSED BY CALIFORNIA REGULATOR *FDIC: SVB IS FIRST FDIC-INSURED INSTITUTION TO FAIL THIS YEAR

[Baangaruu]

Just now, megadheera said:

Is it happening? SVB is going to shutdown anta

Shutting down today or tommorw. I need to take money from bank

[pandu123b]

https://www.cnbc.com/2023/03/10/silicon-valley-bank-is-shut-down-by-regulators-fdic-to-protect-insured-deposits.html

[JaiBalayyaaa]

2 minutes ago, megadheera said:

Is it happening? SVB is going to shutdown anta

But it will only affect future venture capital for now

[megadheera]

Done and dusted anukunta inka.. @hyperbole kaka SOFI safe aa?

[hyperbole]

No both are not same and not even close. The problem is that their investments are illiquid and they're experiencing a bank run(customers rushing to withdraw their money). They bought mortgage-backed securities that mature in 10-30 years but tech companies are spending more money (withdrawing) than SVB can attract (depositing). So they have to sell their investments at a loss in the secondary bond market to cover withdrawals.

A bigger bank can provide the liquidity but shareholders ki ram ram

what Lehman brothers did is bought securities that people weren’t able to pay(home loan tesukoni egamingindru and hence there assets were valued less than loan amount)

[hyperbole]

17 minutes ago, megadheera said:

Done and dusted anukunta inka.. @hyperbole kaka SOFI safe aa?

SoFi ki last year ee bank ga recognition vachindi, so what they used to do is offer a loan and then sell it to companies like SVB as securities for some commission on top, since it was not a bank until last year it was not allowed to keep loans on its books for more than 3-6 months. That’s how it got the capital.

last year bank approval vachindi Kabbatti they started accepting deposits as a bank from the customers paying good interest rates(4%) and in the process they offered personal loans at higher rates(8-20 APR), SVB emo 3% rates unnappudu bonds konnadi, ippudu interest rates perginavi kabati bonds Konevallaki direct bonds market le ne manchi rates vastunnayi and who would buy from SVB and basically they will have to sell at a loss. SoFi ki aa problem undadu enduku ante valla personal loans are above the standard fed APR and so bond market lo valla securities ki value untadi in case if they customers rush to withdraw their deposits.

overall anni banking stocks will see an effect in the near term but SoFi is different case, vallaki investments in bonds chala takkuva unnadi and since it is a growing company they are investing in themselves.

one risky thing is if there are defaults on the loans taken(also most of them are unsecured loans) then that will impact them bad and not just them but over all banking sector

[megadheera]

5 minutes ago, hyperbole said:

SoFi ki last year ee bank ga recognition vachindi, so what they used to do is offer a loan and then sell it to companies like SVB as securities for some commission on top, since it was not a bank until last year it was not allowed to keep loans on its books for more than 3-6 months. That’s how it got the capital.

last year bank approval vachindi Kabbatti they started accepting deposits as a bank from the customers paying good interest rates(4%) and in the process they offered personal loans at higher rates(8-20 APR), SVB emo 3% rates unnappudu bonds konnadi, ippudu interest rates perginavi kabati bonds Konevallaki direct bonds market le ne manchi rates vastunnayi and who would buy from SVB and basically they will have to sell at a loss. SoFi ki aa problem undadu enduku ante valla personal loans are above the standard fed APR and so bond market lo valla securities ki value untadi in case if they customers rush to withdraw their deposits.

overall anni banking stocks will see an effect in the near term but SoFi is different realm, vallaki investments bonds chala takkuva unnadi and since it is a growing company they are investing in themselves.

one risky thing is if there are defaults on the loans taken(also most of them are unsecured loans) then that will impact them bad and not just them but over all banking sector

I think this is not too far we are going into recession. I might be wrong

[hyperbole]

10 minutes ago, megadheera said:

I think this is not too far we are going into recession. I might be wrong

Risk is there obviously but if it goes that way we will have bigger problems than just SoFi

[veerigadu]

I disagree. This is not the same situation by any means. Its a mismanagement issue rather than a lending issue. 

[Hitman]

 USA can’t afford a recession. Period. This is Temporary . Economic activity is normal. There is lot of cash in circulation, just need some alignments. Buy the Fxxing Dips. 
 

[veerigadu]

1 minute ago, Hitman said:

 USA can’t afford a recession. Period. This is Temporary . Economic activity is normal. There is lot of cash in circulation, just need some alignments. Buy the Fxxing Dips. 
 

Its downturn for sure. I dont think it will progress to a recession though. IT folks will face the most heat. Seems like investments in this field are not proving any good from investors stand point. 

[Gaali_Gottam_Govinda]

15 minutes ago, veerigadu said:

I disagree. This is not the same situation by any means. Its a mismanagement issue rather than a lending issue. 

Just tip of the ice berg....... Commercial Real Estate portfolio on banks books will be biggest bust. Next 1 year lo something big is gonna break in this sector. 

Fed will do no QE this time,,, they may bailout banks but won't pump economy....... They gotta keep Inflation in check.

[hyperbole]

16 minutes ago, Hitman said:

 USA can’t afford a recession. Period. This is Temporary . Economic activity is normal. There is lot of cash in circulation, just need some alignments. Buy the Fxxing Dips. 
 

Inflation is bigger issue, if the wage inflation kicks in it then a lot of companies will go under as they will not be able to run business with such high inflation. I lost a lot of money but if we have to keep our jobs taming inflation is very important even it causes pain in the markets in the near term

imagine people paying $3 million for homes which were selling half the price couple of years ago and if not tamed it might even go to 4-5 million in no time, this will trickle down to how much money you will demand from your company and at some point your company may either not be able pay so much or looks at ways to cut costs. Even if you may survive somehow but imagine all those who are not as well read as you