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2/ The crypto market seems to be tracking gold and silver more closely as the macro focus shifts from interest rates to bank failures and the risk of default.
3/ The higher correlation with precious metals likely began following the Silicon Valley Bank failure and the subsequent government response. It seems to persist as the debt ceiling deadline approaches. #SVBBank
At the beginning of what we call “America,” the government wrote laws, one such set of laws created the US dollar.
Because the federal government created the US dollar, you might think the Fed Govt’s understand that US dollar banking is the responsibility of the dollar’s creator.
Because the federal government created the US dollar, you might think the Fed Govt’s understand that US dollar banking is the responsibility of the dollar’s creator.
But, seemingly, the federal government (and the public) don’t get it. Allowing for-profit, private banks to handle that responsibility, competently and without stealing, requires an impossible level of supervision along with a naive belief in the purity of the human spirit.
It's a sunny day and you're standing in a long line outside your bank, waiting to withdraw your hard-earned money.
The reason? Everyone else is doing the same thing, fueled by panic and fear.
This, my friends, is what's known as a bank run🧵
#svbbank #bitcoin #finance
The reason? Everyone else is doing the same thing, fueled by panic and fear.
This, my friends, is what's known as a bank run🧵
#svbbank #bitcoin #finance
But what if I told you that you can avoid being a part of this chaotic scene?
That's right, there are ways to protect yourself from the madness of a bank run.
That's right, there are ways to protect yourself from the madness of a bank run.
One way is to diversify your assets. Don't put all your eggs in one basket, as the saying goes.
Spread out your investments across different types of assets like stocks, bonds, real estate, and yes, even cryptocurrencies.
Spread out your investments across different types of assets like stocks, bonds, real estate, and yes, even cryptocurrencies.
Not every financial company should be structured as a bank, thereby accepting deposits, intermediating funds across markets, and reporting capital adequacy ratios using the @BIS guidelines.
This is the lesson I derive from the #SVBCollapse
#SVBCrash
This is the lesson I derive from the #SVBCollapse
#SVBCrash
@Bis What is the point of pasting SVB CAR and Capital Ratio Metrics?
What sense could one derive from them before the run began?
They didn't reveal the full picture to the creditors, depositors, or shareholders.
CAR is a metric which exemplifies loss absorption capacity
Now?#SVBCrash
What sense could one derive from them before the run began?
They didn't reveal the full picture to the creditors, depositors, or shareholders.
CAR is a metric which exemplifies loss absorption capacity
Now?#SVBCrash
We need to revert to the Glass Steagall Act to understand economic history.
Why it was introduced in the aftermath of the Great Depression.
Why FDR and his team drew Chinese walls between Investment and Retail Banking institutions?
federalreservehistory.org/essays/glass-s….
Why it was introduced in the aftermath of the Great Depression.
Why FDR and his team drew Chinese walls between Investment and Retail Banking institutions?
federalreservehistory.org/essays/glass-s….
🔴 #SVBBank "Attention aux investisseurs mondiaux ! Ne laissez pas les banques américaines manger votre argent".
Article initialement publié par Global Times (#Chine) le 12 mars 2023
Alors que les analystes de Wall Street ont déclaré que la faillite de la Silicon Valley Bank 🔽
Article initialement publié par Global Times (#Chine) le 12 mars 2023
Alors que les analystes de Wall Street ont déclaré que la faillite de la Silicon Valley Bank 🔽
2.
(#SVB) n'entraînera pas de risque systémique pour le système financier dans son ensemble, il convient de noter que les mesures prises par les régulateurs américains pour faire face à l'effondrement de la #SVB et à la gestion des dépôts de ses clients constitueront une 🔽
(#SVB) n'entraînera pas de risque systémique pour le système financier dans son ensemble, il convient de noter que les mesures prises par les régulateurs américains pour faire face à l'effondrement de la #SVB et à la gestion des dépôts de ses clients constitueront une 🔽
3.
fenêtre importante pour savoir si la crise a le potentiel de s'aggraver.
L'effondrement de #SVB a provoqué une onde de choc dans les start-ups du monde entier, les entreprises technologiques ayant averti que les retombées potentielles pourraient porter un coup fatal aux 🔽
fenêtre importante pour savoir si la crise a le potentiel de s'aggraver.
L'effondrement de #SVB a provoqué une onde de choc dans les start-ups du monde entier, les entreprises technologiques ayant averti que les retombées potentielles pourraient porter un coup fatal aux 🔽
Mutual funds do come with lock-in features! Especially if you are investing in a capital-protected product, you are not entitled to early encashment for a certain time.
Redemptions are deterred with the backend load.
#Backstops are required in the banking arena beyond penalties
Redemptions are deterred with the backend load.
#Backstops are required in the banking arena beyond penalties
Of course, if you park liquidity in a time deposit liability side product, at a bank, you might have to pay a penalty for early withdrawal.
But, the highest liquidity risk is emanating from the sight deposits pool.
Run-on-the-bank risk is hard to mitigate if assets don't sell
But, the highest liquidity risk is emanating from the sight deposits pool.
Run-on-the-bank risk is hard to mitigate if assets don't sell
Also, the standard practice is to call in the treasury department and borrow short-term through the interbank market to fund liquidity drains.
Call and Clean lending is done via the wholesale market for Fi credits.
Also, Repo markets can be used.
Call and Clean lending is done via the wholesale market for Fi credits.
Also, Repo markets can be used.
Silicon Valley Bank's stunning collapse has led to the freezing of tens of billions of dollars stored there by startups and their private equity backers, raising fears of a wider tech sector fallout ➡️ u.afp.com/ih73 #SVBBank
#UPDATE Britain's technology and life sciences sectors are at "serious risk" following the closure of the California-based Silicon Valley Bank, Chancellor Jeremy Hunt warned on Sunday ➡️ u.afp.com/ih7w #SVBBank
#BREAKING US govt rules out Silicon Valley Bank bailout, but wants to avoid 'contagion': Treasury Sec. Yellen
Here is this Week’s Market Wrap
'Banking on a Collapse' written by @shyamsek
A Thread (1/n)
#Banking #SiliconValleyBank #SVBCollapse #marketwrap
'Banking on a Collapse' written by @shyamsek
A Thread (1/n)
#Banking #SiliconValleyBank #SVBCollapse #marketwrap
One week is a long time in global banking. Or, so it seems if one goes by the latest inflation and interest rate commentary of the federal reserve Chairman Jerome Powell. (2/n)
#banking #inflation #interestrates
#banking #inflation #interestrates
The Silicon Valley bank collapse has almost caused a setting for a rapid reset of the interest rate trajectory in the US. (3/n)
#SiliconValleyBank #SVBCollapse #interestrates
#SiliconValleyBank #SVBCollapse #interestrates
