Dot Com Crash 2.0 incoming

[clearspira]

BBC News - Silicon Valley Bank: Regulators take over as failure raises fears
https://www.bbc.co.uk/news/business-64915616

Silicon Valley's biggest bank has collapsed. Basically every big tech company has money in it and vast amounts of people are not being paid. If you are an indy seller on Etsy for example you cannot get anything processed. There is also a 2008 level bank flight in process too.

[TGLS]

The FDIC has stepped in and the branches will reopen next Monday.

[ProfessorDetective]

Yep, a few of the stablecoins lost their USD parity and the bank had a run. Crypto is sweating, right now.

[Madner Kami]

Yep, a few of the stablecoins lost their USD parity and the bank had a run. Crypto is sweating, right now.

Good. Those Ponzi-schemes need to die.

[Draco Dracul]

The really interesting thing we're going to find out is how much institutional investors have gone in on crypto.

[BridgeConsoleMasher]

Hopefully google, apple, and all the other central data moguls don’t keep all their money in that startup bank.

[Frustration]

What's shocking is that the government is covering the full amount and not just the amount of money insured by FDIC.

That seems like a way to encourage careless banking.

[BridgeConsoleMasher]

What's shocking is that the government is covering the full amount and not just the amount of money insured by FDIC.

That seems like a way to encourage careless banking.

What’s your understanding of the situation? Depositors are getting their money back and directors and investors aren’t getting any provisions.

[Frustration]

Perhaps I'm wrong about this, but IIRC the FDIC only insures a limited amount of money in any one bank. If an account has more than that amount, it can potentially be lost if the bank's finances go down the tubes.

But what I've been hearing is that ALL the funds are being covered. Which seems to send people a message that if they're careless and put all their money in one bank, they won't face the obvious consequences if something goes wrong.

[BridgeConsoleMasher]

Perhaps I'm wrong about this, but IIRC the FDIC only insures a limited amount of money in any one bank. If an account has more than that amount, it can potentially be lost if the bank's finances go down the tubes.

But what I've been hearing is that ALL the funds are being covered. Which seems to send people a message that if they're careless and put all their money in one bank, they won't face the obvious consequences if something goes wrong.

You referred to careless banking, of which isn’t an issue with excessive deposits.