Bank Implosion Begins with SVB (now in Receivership)
On a long enough timeline, borrowing short and lending long ends in liquidation
A company I know had their withdraws at Silicon Valley Bank halted. They tried moving their funds from their SVB account to a different bank yesterday. The amount was double digit millions and it was blocked. Now, they are scrambling to find funds to make payroll next week and for the end of the month. I hope things work out — this is a good company that deserves to make it.
News today is the bank has just been placed into receivership.
https://www.reuters.com/business/finance/global-markets-banks-wrapup-1-2023-03-10/
Many good companies are about to face “Death by Bank”. They did everything else correctly and now they are in a jam, they can’t get access to their money when their bank fails. No doubt, we will hear screams of “the government must bail them out”, but this time it’s going to be different. This is the true purpose of Dodd-Frank, to protect the secured lenders (i.e. derivative holders). If the company lives long enough, they might get some of their funds returned; unfortunately their employees can’t hold out that long.
We are at the end of this version of central bank issued credit as money and they need to move to the next system, one backed with fractional reserve gold and CBDC. Don’t fall for it; in fact, this is the time to move to a more virtuous money system as the old one dies.
As you might know, bank depositors have always been treated like unsecured creditors. They are at the end of the line when a liquidation occurs. They will be bailed in and their funds plundered to save the secured creditors. That’s Bankruptcy 101. This is why my great uncle Veets kept his money in books, coffee cans, etc. He knew it was safer than keeping it in a bank. My relatives found thousands of dollars when they cleaned out his home after he died.
This is a good time to assess your personal situation. Keep some cash at home, enough for a month or two at least. Having food around is also a good idea, the main thing you need is room to maneuver so you don’t have to take a stupid deal. I’m not sure gold and silver will help, they can ban it like FDR did during the depression. Check the levels of your accounts with FDIC insurance…it’s something personal but not enough for a business. US Treasuries registered directly in your name might also help.
At this point, everyone is about to fully understand what’s been happening with our credit as money system. The usury is on many levels and in this casino on a long enough timeline, the House takes it all.