Who is the luckiest person who shorted it in Jan 2022? Who is the most foolish person who bought it in Jan 2022? This person probably bought it based on one or two years high.
There was no reason to short it, unless someone just happened to know there were problems in da house, like a friend of a friend of those in the know. This is the Silicon Valley we're talking about.
Around Feb 2022, SVB broke the rising trend line, and the highs (about 8 total) were getting lower and lower.
Let the finger pointing begin. I.am sure many internal emails and documents will appear to show who is at fault. They (SVB) may be the sacrificial lamb the street needs to clean up the books and move on. Is the event unfortunate? Yes. Was it foreseeable? Yes. People still drink from the irrational exuberant punch bowl because they have a sycophant mind set. Corporate group think is a serious problem and when the perception management team overrides the God dam balance sheet this is what fuckiing happens. Akuma
PA - price is all. Posted this in another topic. First red box with red arrow. Close below the low of the high close bar :-
Famous last words like ... when Bear Sterns collapsed. There is a contagion at other similar banks especially First Republic Bank of SF (FRC). I have a friend who is an MD at FRC and there are VC clients that are nervous and want to pull all their money and close their accounts. Western Alliance Bancorp (WAL), Signature Bank (SBNY) & PacWest Bancorp (PACW) are still down heavy since last Wednesday. Basically any regional bank that a risk of their deposit base eroding quickly is in the crosshairs of short sellers. This is exactly what happened in the late 1970s & early 1980s with the collapse of the Savings & Loans. 18% CDs and 12% legacy mortgages is what really collapsed them.
I laugh when I hear of people rushing to get there money out of a bank because they think might lose it if the bank fails. Naturally, if a Bank has failed and is closed briefly while resolution takes place, you might transfer your funds as soon as it reopens. Very likely the resolution will involve the bank being taken over by a solvent bank, in which case, from your perspective, it will be business as usual as if nothing happened. Unless you unwisely have deposits above the F.D.I.C limit you have no worries. Even then it is unlikely you would lose any of your deposited money. We will not, so long as our deposits are below the FDIC limit --- and it's unlikely even if they aren't --- lose so much as a penny on any demand accounts. Your money deposited in U.S. banks is safe regardless of the bank's solvency. It is the Congress and inflation that should concerned us, that's where the risk is.