SVB Bank Fails

This could be big news and it could spread.  No bank can survive a run on it.  They only have a fraction of the money that’s on deposit.  If Americans do start to lose confidence in the US banking system and run to withdraw funds this could be a shock that would push us further down the road to the Fed coming out with a new financial system...Central Bank Digital Currency, or CBDC’s.  Remember those letters cuz it will be in the news more and more.

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The sudden implosion of Silicon Valley Bank (SVB) is sending shock waves through the financial system and the technology sector.

 SVB plays a central role in the start-up economy of San Francisco. According to Bloomberg, it does business with about half of venture capital backed start-up firms in the U.S.

Venture capitalists this week began advising their portfolio companies to “diversify” away from SVB, according to multiple reports. So, what we are seeing looks a lot like a classic bank run. No fractional reserve bank can withstand a bank run.

On Friday, the California Department of Financial Protection and Innovation said it was shuttering the bank. The Federal Deposit Insurance Corporation (FDIC) said that all insured depositors will have full access to their insured deposits, but that might not be as reassuring as it sounds. Bloomberg reports that more than 93 percent of SVB deposits are uninsured.

https://www.breitbart.com/economy/2023/03/10/breitbart-business-digest-silicon-valley-bank-gets-shut-down/