Echoes of 2008

[ObscurePen]

I have been reading up on the collapse of Silicon Valley Bank and the FED's response to handling the dire situation. A report from Bloomberg states: "US financial regulators moved on Sunday to protect depositors’ funds following the collapse of Silicon Valley Bank and set up a new financial backstop, seeking to stem fears that households and businesses would flee smaller lenders."

https://www.bloomberg.com/news/articles/2023-03-12/us-moves-to-help-depositors-offer-bank-backstop-in-wake-of-svb?leadSource=uverify%20wall

Quite chilling to hear that this is happening at a time of sky-high interest rates and general financial turmoil. What do you guys think the fallout will be like on Monday when markets open and what effect would this collapse have on Bitcoin? Bitcoin of course, conceived following the 08 crisis is built to bypass this sort of thing, "financial backstops".

[BenCodie]

I did not see this coming so soon...but it's happening. The private sector might be able to save SVB. Or, the bank will collapse and reinforcements will be called to prevent the same thing happening throughout the sector. I was surprised to see that Yellen said "no bail-outs for SVB". I was expecting the opposite when the news broke. Very interesting times and I am intrigued to see how this all plays out, and whether or not a domino effect is coming.

What is also intriguing to me is how this will effect Bitcoin when markets open and the weeks following. Will an economic downturn hurt Bitcoin before it benefits it? Or will the fact that this very kind of scenario is why Bitcoin was made, propel it to new highs earlier than we all thought?

[franky1]

SVB customer base and value is not as big as the true institutional banks. so its cheap to use the FDIC instead of a "bail out"

the contagion impact of SVB on the bigger banks is very minimal indeed

the contagion impact of SVB on crypto. has occured. and is marginal. most of the exchanges that used silvergate and SVB moved funds out of those accounts ages ago. so minimised the risk
it was these bank runs to minimise crypto business risks that were the trigger of those banks collapsing..
(the rats jumped ship before it sank)

[takuma sato]

Not surprised due the rapid rise of interest rates by the FED, and im sure they saw such things coming eventually too. If SVB didn't jump on the "crypto this crypto that" bandwagon im assuming they would be doing better, same as Silvergate which tried to become some sort of shitcoin exchange, they are going to pay the crypto bandwagon tax and that's part of the capitulation before we can talk about the next ATH. Im actually surprised stuff like crypto.com are still dumping mad millions all over mainstream sports events.

[pakhitheboss]

SVB customer base and value is not as big as the true institutional banks. so its cheap to use the FDIC instead of a "bail out"

I am surprised that you think SVB is not a big institutional bank. I found out it had $209 billion in assets & ranked as top 20 big banks in the US. The repercussion of it might not come out so soon but it would certainly hit the already struggling US economy and would hugely impact the startup environment in the US & globally. I feel SVB fall might become a blessing in disguise for Bitcoin in the US.  I am pretty much sure that we will hear many more names in the coming month.

[tread93]

I have been reading up on the collapse of Silicon Valley Bank and the FED's response to handling the dire situation. A report from Bloomberg states: "US financial regulators moved on Sunday to protect depositors’ funds following the collapse of Silicon Valley Bank and set up a new financial backstop, seeking to stem fears that households and businesses would flee smaller lenders."

https://www.bloomberg.com/news/articles/2023-03-12/us-moves-to-help-depositors-offer-bank-backstop-in-wake-of-svb?leadSource=uverify%20wall

Quite chilling to hear that this is happening at a time of sky-high interest rates and general financial turmoil. What do you guys think the fallout will be like on Monday when markets open and what effect would this collapse have on Bitcoin? Bitcoin of course, conceived following the 08 crisis is built to bypass this sort of thing, "financial backstops".

You would think that BTC would go up in times like this, we can only hope! At least it looks to he going up rn, HODL!!!

[Venik]

It's not just an Echo now, the history is almost repeating. Last time we didn't have Bitcoin, but now we do. I wonder where is it all gonna lead us.

[DaveF]

I have been reading up on the collapse of Silicon Valley Bank and the FED's response to handling the dire situation. A report from Bloomberg states: "US financial regulators moved on Sunday to protect depositors’ funds following the collapse of Silicon Valley Bank and set up a new financial backstop, seeking to stem fears that households and businesses would flee smaller lenders."

https://www.bloomberg.com/news/articles/2023-03-12/us-moves-to-help-depositors-offer-bank-backstop-in-wake-of-svb?leadSource=uverify%20wall

Quite chilling to hear that this is happening at a time of sky-high interest rates and general financial turmoil. What do you guys think the fallout will be like on Monday when markets open and what effect would this collapse have on Bitcoin? Bitcoin of course, conceived following the 08 crisis is built to bypass this sort of thing, "financial backstops".

This just shows how uninformed you really are.

Sky high interest rates? HAHAHAHAHAHA we are not even NEAR where they were in the mid 2000s or the early 2000s or the late 90s or the early 90s or....
For those that follow finance the 2008 implosion over the summer was clearly seen in late 2006 and by the summer of 2007 was evident what was happening. But the US government / central bank and other governments and central banks looked the other way because they thought it was going to be a small bump.

What you are seeing now is a proactive government taking care of things. You the necrotic tissue out of the body, you don't watch and see what happens.

-Dave

[avikz]

I will say that it's highly unlikely to see another 2008 crisis now. The market is well prepared of what's coming our way. So another big recession is highly unlikely to happen. But yes, taxpayers money will be used to bailout the failed banking system again for sure! Also now this banking crisis will give another chance to FED to increase the lending rate which will increase the burden on the common people.

SVB was the bank for highly risky companies whose roadmap is still not clear. So there was a risk element always present with that bank. It's a good news that HSBC has already purchased SVB's UK business.

[StarKay]

Or will the fact that this very kind of scenario is why Bitcoin was made, propel it to new highs earlier than we all thought?

Bitcoin has enjoyed a kind of daily rally that one can only imagine, going up over 15% today. It proves that BTC was made for moments such as this, I think the Signature bank problems will also drive more people to Bitcoin.

[BitcoinPanther]

I have been reading up on the collapse of Silicon Valley Bank and the FED's response to handling the dire situation. A report from Bloomberg states: "US financial regulators moved on Sunday to protect depositors’ funds following the collapse of Silicon Valley Bank and set up a new financial backstop, seeking to stem fears that households and businesses would flee smaller lenders."

https://www.bloomberg.com/news/articles/2023-03-12/us-moves-to-help-depositors-offer-bank-backstop-in-wake-of-svb?leadSource=uverify%20wall

Quite chilling to hear that this is happening at a time of sky-high interest rates and general financial turmoil. What do you guys think the fallout will be like on Monday when markets open and what effect would this collapse have on Bitcoin? Bitcoin of course, conceived following the 08 crisis is built to bypass this sort of thing, "financial backstops".

As you can see, the price of Bitcoin is starting to recover despite the news about Silicon Valley Bank collapse.  I think the one affected is not BTC but USDC, looking at the market, even USDC had already recovered.  So I do not think that it will have a huge impact on Bitcoin when the market open on Monday. 

I think we just have to wait and see if there is more factor other than SVB that will affect the Bitcoin market negatively on Monday.

[Gyfts]

So far we have SVB, Signature Bank, and First Republic Bank that have publicly failed.

People should also consider the other banks that don't have immediately liquidity and who might fail to secure emergency funding are in bad positions right now. If it turns out many more banks start to fail, then you have a giant problem with the federal government having to credit depositors through FDIC insurance when their own balance sheet is abysmal.

The shareholders are uninsured creditors are all out of their funds. That's money that isn't going to be circulating in the economy anymore. Only creates more stagnation.

[aoluain]

I have been reading up on the collapse of Silicon Valley Bank and the FED's response to handling the dire situation. A report from Bloomberg states: "US financial regulators moved on Sunday to protect depositors’ funds following the collapse of Silicon Valley Bank and set up a new financial backstop, seeking to stem fears that households and businesses would flee smaller lenders."

https://www.bloomberg.com/news/articles/2023-03-12/us-moves-to-help-depositors-offer-bank-backstop-in-wake-of-svb?leadSource=uverify%20wall

Quite chilling to hear that this is happening at a time of sky-high interest rates and general financial turmoil. What do you guys think the fallout will be like on Monday when markets open and what effect would this collapse have on Bitcoin? Bitcoin of course, conceived following the 08 crisis is built to bypass this sort of thing, "financial backstops".

This just shows how uninformed you really are.

Sky high interest rates? HAHAHAHAHAHA we are not even NEAR where they were in the mid 2000s or the early 2000s or the late 90s or the early 90s or....
For those that follow finance the 2008 implosion over the summer was clearly seen in late 2006 and by the summer of 2007 was evident what was happening. But the US government / central bank and other governments and central banks looked the other way because they thought it was going to be a small bump.

What you are seeing now is a proactive government taking care of things. You the necrotic tissue out of the body, you don't watch and see what happens.

-Dave

Yea the government seems to have acted quickly to what happened and after reading
this article >

https://www.reuters.com/markets/world-markets-set-aftershocks-svb-collapse-ripples-out-2023-03-12/

"No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer," a statement from the U.S. Treasury, Federal Reserve and Federal Deposit Insurance Corp said.

I hope indeed that the taxpayers dont bear the cost of this.

Just a side note in relation to what happened and highlighting some of the
nonsense surrounding FIAT banking.

They are allowed to lend multiple times the amount of deposits they receive - so
when everyone wants their funds all at the same time ....
they cannot fullfil the demand.

Its just goes to show the banking system is teetering on collapse. This is at least
a warning sign!

[ObscurePen]

History doesn't repeat, but it does often rhyme.  

However, bitcoin is slowly but surely breaking away from sharing the same patterns of United States publicly traded companies.

It's looking very good right now at 22k, amidst all the fire.

Yeah its breaking away from its traditional trend with US stocks. Notably its following trend with gold. I believe this is a sign that Bitcoin has been largely accepted by the world as at least a store of value, perhaps not as a currency yet.

[Kemarit]

History doesn't repeat, but it does often rhyme.  

However, bitcoin is slowly but surely breaking away from sharing the same patterns of United States publicly traded companies.

It's looking very good right now at 22k, amidst all the fire.

Yeah its breaking away from its traditional trend with US stocks. Notably its following trend with gold. I believe this is a sign that Bitcoin has been largely accepted by the world as at least a store of value, perhaps not as a currency yet.

Yeah, bitcoin becomes a store of value (SoV) or hedge against what is currently going on, i.e. banking crisis. So smart investors are looking for a safe haven, which could be Bitcoin on the top of the list or even Gold I must say or Stocks for those who know how to play.

So we will see, we've been in the pandemic and Bitcoin survived and it is one of the it's biggest test so far in it's young infancy.

And with the banking crisis around, I think we will all be the winner as individuals are looking for a place of security.

[BlackBoss_]

The world and cryptocurrency market have different conditions in different years but over years since 2009, Bitcoin is bullish. History does not have to repeat itself completely but it has its own rhythm.

Yearly candles

Since 2009 bailout when the Bitcoin Genesis block was created till 2023 with another wave of recession and bank bailouts, Bitcoin is here and it did not have any bailout and in future it won't have such as well.

Genesis block

The Times 03/Jan/2009 Chancellor on brink of second bailout for banks