Biden on Brink of 2nd US Bank Bailout

[tread93]

The title sounds all too familiar, doesnt it? We are seeing this in real time and its pretty wild! This is one of the main reasons that Bitcoin was created, to create an alternative to the fiat trash money. Tomorrow morning President Biden will speak on the 2 bank collapses that happed in the past week, and of course he is going to follow in Janet Yellens footsteps assuring that the US Government will bail the failed banks out and that all the depositors money is safe, but with what money? The printers are running nonstop, they have to be. The US defaulted on their debt recently, I mean all the conditions are not looking great for USD.

Are we seeing the beginning of the domino affect on US AND ALL GLOBAL BANKS?! Is the USD going to finally collapse? I don't think just yet, the FED is going to pull some strings to delay yet again but how much longer can they hold up the inevitable?

Silver and Gold are being purchased like crazy, and people are buying more Bitcoin too the price is going up as we speak. What an insane week for the markets. Surely BTC has a chance for a huge upswing. I mean honestly this is looking very BULLISH for BTC, is it not?

[SquirrelJulietGarden]

Are we seeing the beginning of the domino affect on US AND ALL GLOBAL BANKS?! Is the USD going to finally collapse? I don't think just yet, the FED is going to pull some strings to delay yet again but how much longer can they hold up the inevitable?

We likely will see domino effects in a branch of bank industry with similar model of Silicon Valley Bank, Silvergate, Signature bank. However I don't think the domino effect will be expanded to banks with different models and are healthier than those bankrupted banks. FED and FDIC are trying to resolve the crisis and prevent domino effects to other banks especially banks with different operational models.

Silver and Gold are being purchased like crazy, and people are buying more Bitcoin too the price is going up as we speak. What an insane week for the markets. Surely BTC has a chance for a huge upswing. I mean honestly this is looking very BULLISH for BTC, is it not?

I don't think it will make big effect on Bitcoin. Do you see in 2020 when WHO announced pandemic, people panic sold bitcoin. Later they think that pandemic gave Bitcoin chances and it rose up. Honestly, Bitcoin grows with time because of its design against centralization, hyper inflation. Governments, financial recession, collapses are only one of many things which can contribute for Bitcoin growth in long term.

In short term, risk is always here.

[Don Pedro Dinero]

I have seen it said in several places that this marks the beginning of another big crisis like the one in 2007. The worst thing if this is true is that we are already coming from an inflationary crisis, instead of like in 2007 when we were coming from a boom. In any case, we will soon see how this plays out. Starting today and in the coming weeks.

Silver and Gold are being purchased like crazy, and people are buying more Bitcoin too the price is going up as we speak. What an insane week for the markets. Surely BTC has a chance for a huge upswing. I mean honestly this is looking very BULLISH for BTC, is it not?

Gold? Gold price has been practically flat for more than a year, and the recent rise of bitcoin price can be due to multiple causes. It is 1% in the last 24 hours, which means nothing.

The problem is that we have been in a scenario that seems ideal for bitcoin for some time now and the price of bitcoin has been falling steadily. The opposite of what we thought would happen in a high inflation crisis. In the end, the price of bitcoin is measured in dollars, and if there are fewer dollars available due to tightening policies, people invest less and even sell to get fiat, which means that the prices of gold, bitcoin and shares fall, which is what has happened.

I would like to see the price of bitcoin start to go up like a rocket from tomorrow, but I don't think we will see impressive price rises during 2023, let alone break 69,000 USD until after the next halving.

[tread93]

I have seen it said in several places that this marks the beginning of another big crisis like the one in 2007. The worst thing if this is true is that we are already coming from an inflationary crisis, instead of like in 2007 when we were coming from a boom. In any case, we will soon see how this plays out. Starting today and in the coming weeks.

Silver and Gold are being purchased like crazy, and people are buying more Bitcoin too the price is going up as we speak. What an insane week for the markets. Surely BTC has a chance for a huge upswing. I mean honestly this is looking very BULLISH for BTC, is it not?

Gold? Gold price has been practically flat for more than a year, and the recent rise of bitcoin price can be due to multiple causes. It is 1% in the last 24 hours, which means nothing.

The problem is that we have been in a scenario that seems ideal for bitcoin for some time now and the price of bitcoin has been falling steadily. The opposite of what we thought would happen in a high inflation crisis. In the end, the price of bitcoin is measured in dollars, and if there are fewer dollars available due to tightening policies, people invest less and even sell to get fiat, which means that the prices of gold, bitcoin and shares fall, which is what has happened.

I would like to see the price of bitcoin start to go up like a rocket from tomorrow, but I don't think we will see impressive price rises during 2023, let alone break 69,000 USD until after the next halving.

Man, wouldn't we all love to see 69k again that would be inredible, which we definitely will. Right now people are scared, hence the bank runs. If this continues we may see a nice run on gold and silver as a way to hedge and store of value. Metals exchanges are running out due to the increased demand caused by all the bank FUD. I do think it's odd that these seemingly great conditions for BTC to rise haven't sparked a huge rise in price. Maybe you're right though maybe the next halving is the next stop for a new ATH, which I think everyone is thinking. But if BTC can't rise to the occasion in these conditions I guess anything can happen. Where's a pro Elon Musk BTC tweet when we need it lmao 🤣

[thecodebear]

The title sounds all too familiar, doesnt it? We are seeing this in real time and its pretty wild! This is one of the main reasons that Bitcoin was created, to create an alternative to the fiat trash money. Tomorrow morning President Biden will speak on the 2 bank collapses that happed in the past week, and of course he is going to follow in Janet Yellens footsteps assuring that the US Government will bail the failed banks out and that all the depositors money is safe, but with what money? The printers are running nonstop, they have to be. The US defaulted on their debt recently, I mean all the conditions are not looking great for USD.

Are we seeing the beginning of the domino affect on US AND ALL GLOBAL BANKS?! Is the USD going to finally collapse? I don't think just yet, the FED is going to pull some strings to delay yet again but how much longer can they hold up the inevitable?

Silver and Gold are being purchased like crazy, and people are buying more Bitcoin too the price is going up as we speak. What an insane week for the markets. Surely BTC has a chance for a huge upswing. I mean honestly this is looking very BULLISH for BTC, is it not?

Bitcoin price is going up for the opposite reason. Bitcoin price shot up today precisely because the FED said they would make any despositers in Silicon Valley Bank whole. Meaning that USDC is back to having a full reserve. You're trying to argue that Bitcoin is going up for the opposite reason of why it shot up today.


Anyway banks failing is not good for Bitcoin. Maybe in the long term like over the decades as Bitcoin can move to replacing fiat savings for lots of people and fiat spending for lots of people. But 3 banks going under in the past few days is not good for anything. There's a reason why Bitcoin goes down when the economy looks bad or when there is bad economic news - because investors get scared and they sell their investments. Long term Bitcoin replacing some of banking is good, but short term banks failing is definitely not good for Bitcoin as people would just panic and among other things they'd get out of Bitcoin.

[jeraldskie11]

Surely BTC has a chance for a huge upswing. I mean honestly this is looking very BULLISH for BTC, is it not?

People think that whenever there's a bad news that's the time to sell their holdings. And we can't blame them because every after the bad news, Bitcoin and alts are likely the price drops afterward. But in most cases, it's made to give an opportunity for people to get in.

Look what happened to the USDC after announcing the bad news that Silicon Valley Bank collapsed. USDC got a drastic drop but after a while it went back to 1$.

Just because there's a bad news it doesn't always mean that it's time to sell, sometimes it takes as an opportunity to other to buy.

Therefore, I believe that BTC are now getting bullish.

[pooya87]

I believe the bank think in US is still on a small scale that is not any reason to compare it to 2008 collapse but at the same time we already know that US economy is in a very terrible shape which is obvious from the high inflation while FED desperately tries to lower it by increasing the interest rate to high values and still fails.

Are we seeing the beginning of the domino affect on US AND ALL GLOBAL BANKS?! Is the USD going to finally collapse? I don't think just yet, the FED is going to pull some strings to delay yet again but how much longer can they hold up the inevitable?

This is the important question.
We know that dedollarization has been happening for some time which is both a good news and a bad news. Good news for the rest of the world that they will be affected less by USD collapse the more they dump USD. Bad news for US economy since the world dumping USD would create hyped inflation in US since the dollar value collapses and in a couple of years it could be worth even less than Venezuelan fiat called Bolivar.

[mv1986]

The title sounds all too familiar, doesnt it? We are seeing this in real time and its pretty wild! This is one of the main reasons that Bitcoin was created, to create an alternative to the fiat trash money. Tomorrow morning President Biden will speak on the 2 bank collapses that happed in the past week, and of course he is going to follow in Janet Yellens footsteps assuring that the US Government will bail the failed banks out and that all the depositors money is safe, but with what money? The printers are running nonstop, they have to be. The US defaulted on their debt recently, I mean all the conditions are not looking great for USD.

Are we seeing the beginning of the domino affect on US AND ALL GLOBAL BANKS?! Is the USD going to finally collapse? I don't think just yet, the FED is going to pull some strings to delay yet again but how much longer can they hold up the inevitable?

Silver and Gold are being purchased like crazy, and people are buying more Bitcoin too the price is going up as we speak. What an insane week for the markets. Surely BTC has a chance for a huge upswing. I mean honestly this is looking very BULLISH for BTC, is it not?

It is indeed interesting to see that as soon as a crypto exchange collapses, they are all screaming for more and stricter regulation. That's ok of course if things are going the wrong direction. But banks can collapse as they please and I wonder what the consequences are there? More regulation? Stricter? Doesn't seem like it.

Though you said the US recently defaulted on their debt. I tried to find something about that but the only info I can find states that if the debt ceiling isn't raised by congress, then the US is likely to fail soon. Is there any info I missed?

[Wind_FURY]

The title sounds all too familiar, doesnt it? We are seeing this in real time and its pretty wild! This is one of the main reasons that Bitcoin was created, to create an alternative to the fiat trash money. Tomorrow morning President Biden will speak on the 2 bank collapses that happed in the past week, and of course he is going to follow in Janet Yellens footsteps assuring that the US Government will bail the failed banks out and that all the depositors money is safe, but with what money? The printers are running nonstop, they have to be. The US defaulted on their debt recently, I mean all the conditions are not looking great for USD.

If you're suggesting that the Federal Reserve will pivot to expansion of their balance sheet, reverse to QE, and turning on the printers, then I believe not. Inflation is still high in the U.S. A pivot now would bring it up further, then what will do? Tighten more and raise interest rates higher, and more aggressively to bring inflation down.

Are we seeing the beginning of the domino affect on US AND ALL GLOBAL BANKS?! Is the USD going to finally collapse? I don't think just yet, the FED is going to pull some strings to delay yet again but how much longer can they hold up the inevitable?

It might take longer than expected, and the replacement might be a CBDC. A reset of the U.S. Dollar.

[Lucius]

~snip~
I mean honestly this is looking very BULLISH for BTC, is it not?

Why don't you ask your friend who hangs out with the royal family, Putler and the golden dragons? It's completely pathetic that we have centralized Bitcoin to the point where some of you act as if it depends on one man or a bank. All the banks in the US can fail tomorrow, Bitcoin will still exist.

[kryptqnick]

It's a debatable question whether a state should bail out failing banks and industries (it's literally among the topics I've seen suggested for public debates). It is, of course, unpleasant when banks to something wrong and then the taxpayers unwillingly save the banks, so that banks can then enjoy more profits till they do something wrong again. And I do agree that Bitcoin is a nice alternative here, as people are always free to use their BTC and having it isn't built on any authority being allowed to experiment with your money and invest it into something. Thank being said, will the US really bail out the newly collapsed banks? I thought it would just take over the assets to ensure they can be liquidated on the market and customers can get their compensations. In fact, when I just googled Biden bailing out the banks, various (see here, here) recent news said that it's unlikely to happen and that Biden's administration isn't planning to do that. So maybe it's not that bad right now, and the overprinting issue isn't relevant in this specific case.

[tbct_mt2]

Why don't you ask your friend who hangs out with the royal family, Putler and the golden dragons? It's completely pathetic that we have centralized Bitcoin to the point where some of you act as if it depends on one man or a bank. All the banks in the US can fail tomorrow, Bitcoin will still exist.

Not all banks will be collapsed tomorrow or in any black swan event but any bank despite of big or small can be failed or collapsed, bankrupted tomorrow. No guarantee for their survivals and governments can not save all banks. They have to learn lessons from their bad managements, regulations and bank collapses to help other banks but if you have money in a collapsed bank, it is too late and does not mean anything personally after you lose all your money or fortune there.

Bitcoin will exist as it is not backed by any centralized bank. The community own it and when the network is lively running, there is demand and supply is limited, it will have its good value.

Centralized banks can print more fiat currencies but nobody can create more Bitcoins than 21M in the protocol.

[Carlton Banks]

Are we seeing the beginning of the domino affect on US AND ALL GLOBAL BANKS?! Is the USD going to finally collapse?

[snip]

looking very BULLISH for BTC, is it not?

be careful what you wish for

of all the people (which is the overwhelming majority) that still trust banks and the financial industry that could lose out from USD/banking collapse...

...some of them would blame us


it's the "cornered animal" syndrome; you've lost everything, so you've got nothing to lose by randomly lashing out at (perceived) soft targets

[Jet Cash]

It looks as if the Chinese have bought the UK arm of the Silicon Valley Bank. I thought the US was anti China and trying to sanction the country publicly. In the meantime it seems they are selling them US assets, and transferring manufacturing and research to Chines owner companies. How long will it be until the Renminbi becomes the official currency of the US?

[Lucius]

be careful what you wish for

of all the people (which is the overwhelming majority) that still trust banks and the financial industry that could lose out from USD/banking collapse...

...some of them would blame us

it's the "cornered animal" syndrome; you've lost everything, so you've got nothing to lose by randomly lashing out at (perceived) soft targets

When you say "us", I assume you mean the Bitcoin community (although I've never been a supporter of such expressions) - but why would the average loser who still trusts the system blame Bitcoin, which to be honest is almost insignificant compared to the power that banks have, especially in terms of how many trillions of $ they have at their disposal.

Yes, I agree that we/Bitcoin are very soft/easy targets, but I don't see what would serve as the main mantra this time, except for already worn-out stories about how mining consumes huge amounts of energy, or how Bitcoin finances international terrorism.

If the Americans want to blame someone, then they should consider calling out former President Trump, who allegedly canceled the provision that banks with up to $xxx million must undergo regular inspections or something similar (I'm not entirely sure what this measure is called). The political decision is to blame for what is happening today, and that is the only truth.

[thecodebear]

I don't think this is going to spread into a domino effect of lots of things failing. I think it was just coincidence 3 banks failed within a few days of each other. Since the Fed stepped up and is insuring everyone is getting their money back I don't think this will cause a domino effect. If they Fed hadn't done anything then this could have spread yes.

Still it is a sign that despite great job numbers and high wages there are some underlying issues in the economy besides just inflation as the US tries to get back to normal after all that money printing during the pandemic. Hopefully we see the Fed be a bit more concerned about something bad happening in the economy and they think twice about raising interest rates too quickly and too high from here on out.

[thecodebear]

be careful what you wish for

of all the people (which is the overwhelming majority) that still trust banks and the financial industry that could lose out from USD/banking collapse...

...some of them would blame us

it's the "cornered animal" syndrome; you've lost everything, so you've got nothing to lose by randomly lashing out at (perceived) soft targets

When you say "us", I assume you mean the Bitcoin community (although I've never been a supporter of such expressions) - but why would the average loser who still trusts the system blame Bitcoin, which to be honest is almost insignificant compared to the power that banks have, especially in terms of how many trillions of $ they have at their disposal.

Yes, I agree that we/Bitcoin are very soft/easy targets, but I don't see what would serve as the main mantra this time, except for already worn-out stories about how mining consumes huge amounts of energy, or how Bitcoin finances international terrorism.

If the Americans want to blame someone, then they should consider calling out former President Trump, who allegedly canceled the provision that banks with up to $xxx million must undergo regular inspections or something similar (I'm not entirely sure what this measure is called). The political decision is to blame for what is happening today, and that is the only truth.

I've already seen the crypto blame starting with these banks shutdowns. Just because these banks were involved in some crypto services I have definitely seen some articles about the banks shutting down as having to do with crypto. I dunno about Silverbank, that one was more involved with crypto, but SVB and NY Signature Bank failing had nothing at all to do with crypto but some people are trying to claim it was crypto that caused them to go under. I guess people feel its easy just to blame crypto if something that failed had any connection to it.

[Yogee]

[......] but with what money? The printers are running nonstop, they have to be.

They will probably keep doing this until they reap the benefits of instigating new wars I guess? They are still pretty involved with the Ukraine-Russia conflict and now they are getting more aggressive against China. Biggest arms dealers in the world will surely benefit if Taiwan-China conflict escalates and US is one of them.

[hatshepsut93]

Tomorrow morning President Biden will speak on the 2 bank collapses that happed in the past week, and of course he is going to follow in Janet Yellens footsteps assuring that the US Government will bail the failed banks out and that all the depositors money is safe

Treasury Secretary Janet Yellen says U.S. government won't bail out Silicon Valley Bank

Let me be clear that during the financial crisis, there were investors and owners of systemic large banks that were bailed out, and the reforms that have been put in place means that we're not going to do that again

And Bitcoin at first reacted negatively, yesterday it fell to $20k, and today it just recovered to $24k, which is where it were before this drama started. Sure, maybe Bitcoin will be at $40k in a week, but until that happens, let's not make hasty statements.

These banks that were affected were tied to crypto industry, especially exchanges, and reduction in liquidity will probably be more negative rather than positive for the price, although it's still a relatively minor event if you zoom out.

[pooya87]

Inflation is still high in the U.S. A pivot now would bring it up further, then what will do? Tighten more and raise interest rates higher, and more aggressively to bring inflation down.

Interest rates can only affect the inflation rate so much before it becomes ineffective. Roughly below 4% is the sweet spot that can have a significant effect but from there the effects diminish until 5% is nearly completely ineffective.
The biggest problem is that people who didn't have any money and were struggling with increasing prices are now forced to pay even more money (interest) they don't have!

If the Americans want to blame someone, then they should consider calling out former President

There is a long list of POTUS they need to call out starting from Clinton and Nixon or at the very least from Bush who single handedly gave a dumb order that is the reason why US wasted $10 trillion (a little less than a third of US current national debt) over the past 20 years.