Is Silicon Valley Bank just the beginning?
5 replies (most recent on top)
But totally different cause from SVB. People need to stop conflating the two.
Are deposits down? You bet!!!
(what do banks expect when MMA are paying significantly higher % to grab deposits?)
When the Fed flooded our economy with literally TRILLIONs of $$$ of cash to EVERYONE - including rich people who probably didn't need it and others who weren't laid off during covid -- why is everyone surprised at inflation??
I see people splurging on vacations and home renovations -- or parking their $$$ in High Yield Money Market Accounts (MMA) paying nearly 5%! That's 5% risk free!
Big banks are dinosaurs and slow to the uptake, You snooze, you lose.
https://www.pbs.org/newshour/economy/11-big-banks-create-30-billion-rescue-package-for-first-republic
This banking crisis is going to make 2008 look like a picnic. Massive layoffs are coming and this will have a devastating effect on BAC stock price.
Just the beginning, more to come.
First Republic Bank is likely next.