Ed Dowd: "Remain Calm…The World Is Not Ending. Just Changing."

Bank Run Leaves 16th Largest US Bank SVB With Negative $1 Billion

Edward Dowd @DowdEdward

Aging well so far.

Grace Chong 🇺🇸 @gc22gc

DOWD: The stock market is on razors edge right now. I don’t like to make predictions, but if I had to guess — the stock market is going to fall apart the next week or two. @DowdEdward https://t.co/JNpPy7stxX

“Prominent venture capitalists advised their tech startups to withdraw money from Silicon Valley Bank, while mega institutions such as JP Morgan Chase & Co sought to convince some SVB customers to move their funds Thursday by touting the safety of their assets.

“Let us get this straight: the largest US commercial bank was actively soliciting the clients of one of its biggest competitors, and the 16th largest US bank, knowing full well deposit flight would almost certainly lead to the collapse of a bank which courtesy of fractional reserve banking, had only modest cash to satisfy deposit demands: certainly not enough to meet $42 billion in deposit outflows.

“Of course, Jamie, who has suddenly emerged as a key figure in the Jeff Epstein scandal alongside Jes Staley, [brother of Peter Staley] knows this, and would be delighted with an outcome that kills two birds with one stone: take his name off the front pages and also make JP Morgan even bigger. Actually three birds: remember it was JPM that started that "Not QE" Fed liquidity injection in Sept 2019 when the bank "suddenly" found itself reserve constrained. We doubt that JPM would mind greatly if Powell ended his rate hikes and eased/launched QE as a result of a bank crisis, a bank crisis that Jamie helped precipitate. 

“And while we wait to see if Dimon's participation in the Epstein scandal will now fade from media coverage, and whether Powell will launch QE, we know one thing for sure: JPM was a clear and immediate benefactor of SIVB's collapse because in a day when everything crashed, JPM stock was one of the handful that were up.”

—Tyler Durden, ZeroHedge

Zero Hedge coverage.

Garry Tan 陈嘉兴 @garrytan

The real victims of the SVB fallout are the depositors: startups (10 to 100 employees) who cannot make payroll, and will have to shut down or furlough *next week* If these startups wait weeks/months for their deposits, we have destroyed a generation of US startups, *at random* https://t.co/StQLLMlZRU

CNBCOvertime @CNBCOvertime

.@GarryTan CEO of @ycombinator calling the SVB fallout an "extinction level event for startups" "These depositors will not survive weeks or months without some sort of plan from the govt." $SVIB #SiliconValleyBank #startups https://t.co/pwMD2DWPLz

zerohedge @zerohedge

Record Bank Run Drained A Quarter, Or $42BN, Of SVB's Deposits In Hours, Leaving It With Negative $1BN In Cash

zerohedge.comRecord Bank Run Drained A Quarter, Or $42BN, Of SVB’s Deposits In Hours, Leaving It With Negative $1BN In CashThe biggest winner? Jamie Dimon.

Edward Dowd @DowdEdward

Ok gang we have entered the quickening phase of events. The news flow on many fronts will be fast and furious. Remain calm & avoid fear and panic. The world is not ending. Just changing.