opinion by Linda Kirby/WGON
Silicon Valley Bank (SVB) has failed to raise capital, making it the largest lender to fail since Washington Mutual collapsed in 2008. SVB partnered with nearly half of all venture-backed tech and health care companies in the United States. This has caused a "bank run".
What does this mean really? Well, without writing a book, let's try to just touch on the tip of this iceberg. The big tech companies have lost millions or even billions and the smaller start up tech companies will go broke. All who were using this bank, have experienced a catastrophe. Jobs will be lost. Homes will be lost due to job losses. And, many are afraid it will spread. If it spreads, they say this could be worse than 1929!
First Republic Bank, which also serves many California tech companies, had fallen around 22 percent on Friday afternoon. Shares of Bank of America had fallen around 1 percent, and Morgan Stanley shares fell over 2 percent on Friday afternoon. Wells Fargo couldn't make it's payroll citing "computer glitch".
The crypto bank Silvergate, has also failed. The total crypto market cap slipped below $1.025 trillion as concerns over Silvergate Bank’s solvency triggered a sharp sell-off in BTC, ETH and altcoins. I hear crypto will totally collapse.
There are many people panicking and pulling their money out of the banks, which will cause more failures.
One billionaire called for the federal government to issue a “highly dilutive” bailout for the firm after its failed attempt to raise nearly $2.3 billion. There are those who say no, don't bail them out, didn't we learn anything from 2008? Let it fail. Why allow those elitist stay wealthy while the little guy who can barely put food on the table, bail them out?
How did this happen? Many say it's Biden's poor economic policies. Others say it's the woke mob putting people in positions that they can't handle. Frankly, I think it's both together.
I just want to warn that there is something terrible brewing and if it's not handled correctly, this could lead to a really hard time shortly. I don't expect this administration to handle anything correctly because here we are, after all, in a free fall. The buck stops at the Oval Office.
I hear people saying to get yourself prepped for some hard times. Are they being fearful for a reason? I don't know. I just know I'm supposed to tell you what could be coming and let you decide for yourself the best action for you and yours.
God have Mercy on us!!