I remember last year there was some minor Chinese bank that had a run over millions of dollars of deposits, and it seemed like it was front page news for a month.
Silicon Valley Bank just failed and wiped out tens of billions , possibly more than a hundred billion, and it's barely getting coverage. All the top news stories I'm looking at are China / Russia, and the Americans who got kidnapped by a cartel.
Well, SVB is big but it's just kind of a weird scenario ultimately. They tied up 90B$ in 10 year Treasury bonds right before the Fed started hiking rates (and hasn't stopped). So that's like 40,% of their assets tied up right there.
It's one of the most avoidable bank failures, definitely of this century.
Not only that, but right wing Indian media was posting fake news about china sending in tanks to kill/combat protestors when in reality it was just your run of the mill pigs beating a few protestors which is already bad enough. And the tanks were from the annual military drills/parades in a city hundreds of miles away lol
But that didn’t stop westoids from eating it up and thinking some obscure branch in the middle of a small rural town would be the catalyst for “revolution”
my early adolescent brain remembers bear stearns not making much of a dent in the news cycle until washington mutual or whatever the next domino it was that fell a few months later. jp morgan? idfk
Surely Roku is an outlier and an isolated case.....
Buckle up comrades. Buckle the fuck up.
Someone I know at a startup was told today in an emergency all-hands that the company will not be able to make payroll, and that they are trying to understand if the company will still be a going concern. They had plenty of runway until this week.
California’s wine industry is going to shit the bed. A whole lot of farm workers are going to lose income.
in CA, failure to pay wages pierces the corporate veil. meaning wages and damages are owed even if the company goes bankrupt. the corporate officers remain on the hook.
Bitcoin fixes this :libertarian-alert:
Part of me is like…what’s the dumbest fucking outcome….and is that SVB imploding and taking out swathes of startups going to be viewed as a means of “fighting inflation” by utter ghouls
Not just tech start ups. My former employer is a healthcare company that uses the bank because the PE fund that owns it insisted upon it.
I've got 2% of a crypto adjacent "startup" company that bought a bankrupt airline. Not my main gig or anything and I fully expected it to fail, just not this way.
I'm in an industry that deals pretty closely with places that had the majority of their cash in SVB. People talking about missing payroll, only having a couple months of remaining runway, or going under completely. Feels like we might be entering the cool zone really quick next week depending on how this plays out
The amount of finding that vanished for startups and smaller tech companies after the crypto crash was bad and now this. There's gonna be a lot more tech shops shutting their doors shortly I suspect.
Hopefully :biden-leftist: and :amerikkka: :brrrrrrrrrrrr: can minimize the ripples since they are stepping in before shit really started to hit the fan, but if things don't go well with that we could be in for the recession that looked to be on the horizon years back
can any of yall check if their servers being shut off would brick my tv with it built in cause at this point that feels in character for my life
Company wouldn't go bankrupt over losing cash reserves, there might be some restructuring just because their operational costs would have to be covered by loans which are expensive right now. But also I think both the fed and congresspeople have said that the government is going to cover any losses caused by SVB going bankrupt.
everyone I know who uses a Roku pirates movies and shows lol. How are they making money and how hasn’t the feds investigated them
I imagine license fees from both streaming services which run on Roku and from TVs which have the Roku OS built in are their biggest money makers.
They're more of a hardware company, even if you pirate you'll usually want to use plex or something to watch it on your TV. While they have a storefront, content is a small portion of their revenue.
that's a lotta vanished guacamole. :stonks-down:
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