cloud fodder on Nostr: Aw, ya I admire your steadfastness for #marchofftwitter. I spent yesterday just ...
Aw, ya I admire your steadfastness for #marchofftwitter. I spent yesterday just talking to friends in tech world and reading about what might be going on. Some quick summary for you from my POV: SVB is the fourth largest bank in the US and they were handed over to the FDIC on Friday, just in time for the weekend (when banks close). SVB is gone, just like that, a new entity will be created by the FDIC for all future transactions in an orderly shutdown or sellout/aquire.
This left nearly everyone that is running a startup business wondering how they will make payroll as there were many companies that didn't or couldn't get their money out before that. Many many companies in the tech sector had their funds there.
It seems they don't know what will happen but they are frantically going to get in contact with the FDIC next week which the people on YouTube and etc say acts very quickly and efficiently and will get them *some money. There is lots of speculation if big govt will bail out the bank, lots of calls for them to do so and fear mongering about how the entire tech sector is erased if they don't. Markets want QE back and this is too far they say, they are attacking Powell and Yellen and the interest rates like a rabid wolfpack.
SVB falling due to holding too many MSBs (mortgage treasuries something), is extra scary for all the rest of the banks because we don't know how many banks are in this same situation and short sellers are gonna go after them when they find out who, just like SVB they will short them to death.
Let's see, what else, ya the USDC had 3billion of it's 'peg' in SVB and Coinbase said they wouldn't be processing USDC until banks open, which is what's causing the depegging fear over the weekend. And rightly so because stable coins are all dependent on guess what: 'banks'.
So that's a quick weekend update.. hope it helps. 🤙
This left nearly everyone that is running a startup business wondering how they will make payroll as there were many companies that didn't or couldn't get their money out before that. Many many companies in the tech sector had their funds there.
It seems they don't know what will happen but they are frantically going to get in contact with the FDIC next week which the people on YouTube and etc say acts very quickly and efficiently and will get them *some money. There is lots of speculation if big govt will bail out the bank, lots of calls for them to do so and fear mongering about how the entire tech sector is erased if they don't. Markets want QE back and this is too far they say, they are attacking Powell and Yellen and the interest rates like a rabid wolfpack.
SVB falling due to holding too many MSBs (mortgage treasuries something), is extra scary for all the rest of the banks because we don't know how many banks are in this same situation and short sellers are gonna go after them when they find out who, just like SVB they will short them to death.
Let's see, what else, ya the USDC had 3billion of it's 'peg' in SVB and Coinbase said they wouldn't be processing USDC until banks open, which is what's causing the depegging fear over the weekend. And rightly so because stable coins are all dependent on guess what: 'banks'.
So that's a quick weekend update.. hope it helps. 🤙