Buckle Up: Silicon Valley Bank Seized by the Fed

[prambo]

Is your bank “important” enough to save? Don’t count on it. - Mark E. Jeftovic is The Bombthrower

"98% of the deposits in SVB were uninsured, meaning that those deposits wouldn’t shouldn’t have been covered by FDIC insurance. That means any accounts with balances above $250K were facing the loss of their funds.

But this is Silicon Valley Bank – this is where the elites place their bets on Silicon Valley unicorns. So we can’t have that.

In a hastily convened meeting between the FDIC, the Fed and the US Treasury, it was decided that all deposits would be covered, insured or not."

"...in your hometown or state, or any other bank in flyover America far away from the Coastal elites – if they get into trouble (because people are moving their money into “protected” banks), then that’s not covered.

That’s tough titties for you."

 

[JaguarJaguarGolf]

20 some odd years ago I worked in an area with many Indian jewelers in Queens. My aide (driver) told me this was the place to buy gold jewelry because it was all 24kt.

 

[DoOver]

Weimar Silver Baron

@BankerWeimar
·
7m

You find out while it’s collapsing…

 

[spat]

Have you ever gone to a place that advertises "We Buy Gold & Silver"?

They have methods of telling.

I went to sell my wedding ring from my 2nd marriage. It was 22K gold and was hand made in Nairobi by Muslim jewelers.

In Africa anything less than 20K is sneered at as junk.

It took the guy in the shop 2 minutes to confirm it was 22K, which is about 92% pure gold. he gave me a fair price that reflected the purity.

One can roll over the "in and outs" and "ups and downs" of using physical gold and silver as a medium of exchange in a SHTF scenario until your ears bleed - and you'll never reach any conclusion.

When fiat money goes down the porcelain facility, and the fUSA $$ is definitely approaching Monopoly money status, there are only a few other things that can be used.

Direct barter - your eggs for his female rabbit, for example - is the only thing that comes to mind that is relatively free of fraud - although I can see someone flogging a burned out female rabbit who can't conceive anymore.

Then there's ammo - we've all heard that 22lr is like $$$ in the bank (which isn't all that safe anymore).

In the larger sense, 22lr or any other rimfire, might be the least open to fakery.

Centerfire ammo? That can be faked, or debased, in any number of ways if one has a modicum of reloading experience.

At the end, in a total "grid down" or SHTF scenario, people will use what they trust.

If we end up being some monster fascist globalist state (IMHO, the real endpoint) it won't matter anyway.

Yes, I didn't say it was too difficult to verify.

But, it's difficult enough to preclude doing it for small transactions.

Go ahead and try selling $20 worth of gold dust to one of those places. I bet they tell you to take a hike.

So my point stands, regardless of the physical size of the gold, there is a minimum practical value for a transaction using it.

 

[JaguarJaguarGolf]

To prove that a gold or silver coin is in fact a real gold or silver coin, the design, the sculpting, the facia, of the coins have become increasingly more complicated and precise. It would be difficult to make a counterfeit American Liberty coin, maybe not so hard a Canadian Maple Leaf. It also helped that the edges of coins were formed so that it could be shown the coin was shaved ever so slightly.

 

[tirwin1]

 

[DoOver]

Wall Street Silver

@WallStreetSilv
·
1h

So UBS buys Credit Suisse, shareholders don’t get a vote, UBS gets $100 billion credit line from central bank … Crazy times this week. Bandaids flying everywhere to keep the system from falling apart.

 

[99cummins]

To prove that a gold or silver coin is in fact a real gold or silver coin, the design, the sculpting, the facia, of the coins have become increasingly more complicated and precise. It would be difficult to make a counterfeit American Liberty coin, maybe not so hard a Canadian Maple Leaf. It also helped that the edges of coins were formed so that it could be shown the coin was shaved ever so slightly.

I thought you just bite the coin like in the movies…

 

[DoOver]

Wall Street Silver

@WallStreetSilv
·
1h

Flashback: Credit Suisse passed stress test 9 months ago. I guess those “stress tests” were all just part of the show.

 

[DoOver]

I thought you just bite the coin like in the movies…

Randolph Scott was always able to get a whiskey with a flake or two.

 

[DoOver]

Wall Street Silver

@WallStreetSilv
·
1h

This is $1 USD in Venezuelan Bolivars.

 

[spat]

To prove that a gold or silver coin is in fact a real gold or silver coin, the design, the sculpting, the facia, of the coins have become increasingly more complicated and precise. It would be difficult to make a counterfeit American Liberty coin, maybe not so hard a Canadian Maple Leaf. It also helped that the edges of coins were formed so that it could be shown the coin was shaved ever so slightly.

That works for a $500+ coin.

But you can't make a $20 gold coin in 2023.

A $20 gold coin in 1923 had nearly an ounce of gold in it. If they made that coin today it would be a $2000 gold coin.

So, gold works for large transactions, but not small ones, unless you already have a great deal of trust built up between the parties. At that point you might as well run a tab.

 

[DoOver]

Jeepers











Wall Street Silver

@WallStreetSilv
·
24m

Credit Suisse AT1 bonds wiped out. I don't think that was expected.

 

[DoOver]

 

[JaguarJaguarGolf]

That works for a $500+ coin.

But you can't make a $20 gold coin in 2023.

A $20 gold coin in 1923 had nearly an ounce of gold in it. If they made that coin today it would be a $2000 gold coin.

So, gold works for large transactions, but not small ones, unless you already have a great deal of trust built up between the parties. At that point you might as well run a tab.

There are 1/10 ounce 1/4 oz. 1/2 oz. Gold and silver coins and rounds that have the designs of coins

 

[Saltwater60]

Weimar Silver Baron
@BankerWeimar
·
7m

You find out while it’s collapsing…

I thought it was Trumps fault because he deregulated the banks.

 

[Saltwater60]

To prove that a gold or silver coin is in fact a real gold or silver coin, the design, the sculpting, the facia, of the coins have become increasingly more complicated and precise. It would be difficult to make a counterfeit American Liberty coin, maybe not so hard a Canadian Maple Leaf. It also helped that the edges of coins were formed so that it could be shown the coin was shaved ever so slightly.

Plenty of fakes out there. China makes tons of them.

 

[spat]

There are 1/10 ounce 1/4 oz. 1/2 oz. Gold and silver coins and rounds that have the designs of coins

So the smallest gold coin is worth ~$200, and is physically so small it becomes difficult to handle as currency.

Silver coins can make sense for normal sized transactions though.

 

[tirwin1]

So the smallest gold coin is worth ~$200, and is physically so small it becomes difficult to handle as currency.

Silver coins can make sense for normal sized transactions though.

I don't think the 1/10 ounce coins are too small. And if gold gets to $10,000 an ounce as some predict I think the smaller coins will be more practical. YMMV.

 

[prambo]

And the band played on...

"US Banking Will Be Forever Changed" | ZeroHedge

"Our COO had already started the process of opening new accounts at a Tier-1 bank; one of the too-big-to-fail affairs that are now politely called SIBs (systemically important banks)."

"And US banking will be forever changed. Power will concentrate further into SIBs. Credit creation will suffer profoundly, and economic dynamism with it."


And Just Like That, The Tight Money Era Is Over

"In the midst of all the various credit crises, controlling inflation will be moved to the back burner. And the world will realize that the central banks are out of ammo, with no choice but to let their currencies burn."

 

[Drinkthekoolaid]

FRC had a dead cat bounce where it almost got back to 50 a share last week but has been declining since. It might be dead, it's still dropping and no confidence.

Really anxious to see what happens with all the mid size regional banks next.

 

[DoOver]

 

[DoOver]

 

[DoOver]

Weimar Silver Baron

@BankerWeimar
·
1h

I expect them to fail today through Friday barring significant government action or a govt backstopped buyout.

 

[DoOver]

 

[Drinkthekoolaid]

 

[DoOver]

 

[DoOver]

Wall Street Silver

@WallStreetSilv
·
3m

The coming inflationary spiral is the hidden tax they don't want to talk about ...

 

[Saltwater60]

Credit Suisse bites the dust today. The Swiss government took it over and sold it to a competitor. Great for monopolies.

Credit Suisse Sold To USB For $2-B In Bid To Curtail Banking Crisis - Good News For Crypto? | Bitcoinist.com

Credit Suisse has struck a deal with UBS for $3.2 billion in a rescue deal aimed at calming financial market panic triggered by the current American banking

bitcoinist.com

 

[prambo]

Interesting quote from a Senator during "The Great Depression" of the 1920s-1930s...

"It [the depression] was not accidental. It was a carefully contrived occurrence worked out as one works out a mathematical equation. The international bankers sought to bring about a condition of despair here so that they might emerge as the rulers of us all." - Louis Thomas McFadden