what happened

[windwalker]

https://www.youtube.com/watch?v=OU72wcPyUfM



2008 the death of the real economy

[origami_itto]

They failed to diversify their investments. Their primary vehicle took a minor hit. Everybody with more than $250K in the bank started pulling it out in anticipation of a failure and caused it to fail.

[everything]

so boom then bust. or as dalio says "how the economy works" (but he focuses on debt-fueled rather than equity-investment-fueled cycles).

meanwhile, it seems another (AI-based) disruptive boom/bust is already happening, already (Msft's billions invested into ChatGPT, fastest adopted consumer internet tech so far, Wall St. saying buy Msft and chip makers).

those two are probably loosely connected in some ways

[yeniseri]

They failed to diversify their investments. Their primary vehicle took a minor hit. Everybody with more than $250K in the bank started pulling it out in anticipation of a failure and caused it to fail.

Excellent direction! The same way Puerto RIco went bamkrupt, is the same way SVB went bankrupt.
WHen cnfidence in the system broke down, people took a run and began to take off as fast as they could at once so their pants fell down.

Sadly, a Wall Street reporter as ignorant as he could be, showed his true colours by stating that their (SVB) hiring practices of 1 black, 2 Hispanics and 2 veterans had some part in the debacle.

[origami_itto]

[origami_itto]

Sadly, a Wall Street reporter as ignorant as he could be, showed his true colours by stating that their (SVB) hiring practices of 1 black, 2 Hispanics and 2 veterans had some part in the debacle.

You always gotta look for how to score some points even when you're losing. It's just a shame they didn't have time to hire a female executive to appoint as CEO to hand the flaming failure over to as proof women shouldn't be in business.

(That was sarcasm but that's exactly what they do)

[Steve James]

Sadly, a Wall Street reporter as ignorant as he could be, showed his true colours by stating that their (SVB) hiring practices of 1 black, 2 Hispanics and 2 veterans had some part in the debacle.

There are pictures of the SVB board of directors. Most of them aren't Black or Hispanic. But, suppose they were. Does the bank take Black and Hispanic deposits?

Anyway, there were major bank failures in 2008, and I recall that the same people were being blamed -for reckless borrowing. The banks were bailed out. There were regulations established afterward to prevent such failures and offer consumer protection. Ooops, regulations bad; deregulation good. Same with air, water, toxic chemicals, carbon emissions, you name it. Results are inevitable.

[origami_itto]

Sadly, a Wall Street reporter as ignorant as he could be, showed his true colours by stating that their (SVB) hiring practices of 1 black, 2 Hispanics and 2 veterans had some part in the debacle.

There are pictures of the SVB board of directors. Most of them aren't Black or Hispanic. But, suppose they were. Does the bank take Black and Hispanic deposits?

Anyway, there were major bank failures in 2008, and I recall that the same people were being blamed -for reckless borrowing. The banks were bailed out. There were regulations established afterward to prevent such failures and offer consumer protection. Ooops, regulations bad; deregulation good. Same with air, water, toxic chemicals, carbon emissions, you name it. Results are inevitable.

Oh you silly liberal. Regulations just get in the way of the righteous accumulation of capital. We all know that when corporations are given fair gain they behave ethically and responsibly and make sure any extra value is put back into the economy.

Laws make criminals, Steve. Let's eliminate crime by abolishing them.

(AGAIN FOR THE FOLKS IN THE BACK THIS IS SARCASM)

[Steve James]

the righteous accumulation of capital

Yep, the political reality is that it is an economic religion where it is a sin to restrict the accumulation of wealth. Just as in mega churches, many of the congregation are just suckers being scammed.
People will be convinced to disbelieve what they see with their own eyes.

Blaming the bank failure on the board's "diversity" is hilarious, but let's take it seriously. What would the opposite of diversity be? All the board members be the same? Would an all Chinese board be better? Would that have prevented the failure? Well, fwiw, I think Chinese people can do bank stuff just as good as Americans. They've demonstrated it time and again.

[windwalker]

"Originating in Thailand, where it was known as the Tom Yam Kung crisis (Thai: วิกฤตต้มยำกุ้ง) on 2 July, it followed the financial collapse of the Thai baht after the Thai government was forced to float the baht due to lack of foreign currency to support its currency peg to the U.S. dollar.
Capital flight ensued almost immediately, beginning an international chain reaction. "

Worked in Thailand for a US based company when this happened...
The Korean won, devalued by half, lucky me..based in the Korean office
paid in won....


The whole US based system is corrupt.
Liberal , conservative, in the end really one party....

"peg to the US dollar"

Soon this among other things will not be possible,
once everything realigns... The dollar, no longer used as worlds reserve currency .

An interesting video showing how those who make laws,
after leaving office become lobbyist, lobbying against the laws they made...



https://www.youtube.com/watch?v=UcTtY_8IHSY