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Part of me wonders what exactly were the toxic assets that pulled SVB under, and my gut feeling can't stop thinking it is that SVB is more exposed to startups t
by elif 4y ago
Part of me wonders what exactly were the toxic assets that pulled SVB under, and my gut feeling can't stop thinking it is that SVB is more exposed to startups than your average bank.. and that the next dominos, so to speak, will be startups seeking lending from banks.
Mass layoffs, finance pulling out, feels very dot com bubble bursty to me.
- packetlost 4y agoYeah, this feels very dotcom 2.0 ish. Capital has been drying up a lot over the last year or so and this is the type of thermonuclear event that flattens industries. I'm glad I have a good amount of savings.
- polio 4y agoWhat do you mean by "toxic assets"? My understanding is that the assets were long-term treasuries issued in 2021. They'd declined in value, as expected, because of interest rate increases that occurred afterwards. SVB is now unable to sell those bonds without losing money, and so would have to wait until maturity to get their money back.