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/biz/ - Business & Finance

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54121094 No.54121094 [Reply] [Original]

hey guys, i was on vacation for a couple weeks and just got back. could someone please explain to me what the fuck happened with silicon valley bank and why everything is on fire now?

>> No.54121108

no

>> No.54121125

>>54121094
you know how jews fuck around with fractional reserves, like what happened to FTX? yeah basically that

>> No.54121126

>>54121094
numbers go up and down.

>> No.54121382

>>54121094

The entire financial system is based on debt. Debt is a promise one individual makes to another person about something they will do in the future. When people can trust in those promises, they can take bolder actions and move faster, this creates and economic "Boom". They can do risky things confident that they will be able to make good on their promises, because everyone else will make good on theirs. Eventually, people get so bold that they make promises they can only keep if other people also keep their promises.

The exact details of what happened at SVBI are irrelevant. They broke 200 billion dollars with of promises, and now the people relying on those promises will have to break their promises. This cycle will continue unless prevented by an outside source, or until it hits the bottom of the financial food chain, the Joe Everyman.

After this, everyone is scared. Nobody feels they can trust anymore. Promises are no good, and nobody will give loans. Bold moves that create a lot of value very quickly are seen as too risky, so they aren't financed and don't happen.

>> No.54122325

>>54121382
interesting, thanks anon. i was hoping to buy a new car in the next month or so, should i hold off for 6 months or so until all this blows over?