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March 12: Beginning of the crisis? 2nd largest bank collapse in history, Crypto Bank collapses as well (Recap ep218)

In today’s recap, Marcello talks about the recent events that might indicate the beginning of the crisis that has been knocking on the world economy’s door for the last couple of months; this week, the 2nd largest bank collapse in history just happened to Silicon Valley Bank, and also Silvergate Bank apparently collapsed as well; both of these situations dragged down the markets with them.

Shares of SVB Financial Group fell -60.41% on Thursday at $106.04, after the firm said it intends to offer $1.25B of its common stock & $500M of depositary shares, weighing on the entire banking sector on concern that more banks, will incur heavy losses on their bond portfolios. SVB Financial also cut its Q1 net income guidance. Shares were down another -61% in premarket trading Friday at $36.10. The stock is down -53.92% in 2023 & -80.01% y/y, with a market cap of $15.83B.
Crypto lender Silvergate Bank 1 of the biggest lenders to major crypto firms, facilitating transfers between exchanges & market makers stock sank -42.16% on Thursday at $2.84, after the firm announced it will wind down operations & liquidate. The bank has been struggling for months, including reporting a $1B net loss in Q4. The stock is down -83.68% in 2023 & -97.70% y/y, with a market cap of $155.44M. By Friday morning Bitcoin had plunged over -2% to below $20K.
For every dollar the U.S. federal government takes in, $1.29 is spent. Under the Congressional Budget Office’s new projection, that number will go up to an average $1.34 over the next ten years. According to conservatives, this has become a spending problem not a revenue problem. The federal U.S. debt at present is at $31.6T. That works out to be $94,466.00 per person & $246,867.00 per U.S. taxpayer.
Shares of crypto-focused companies fell on Thursday, after Silvergate Capital Corp disclosed plans to wind down operations & voluntarily liquidate, as the aftermath of FTX’s implosion last year reverberates through the industry. Analysts claim a complete closure of the crypto lender could take 1 or 2 years depending on how quickly outstanding loans are repaid & assets are disposed of. Bitcoin fell some -1% to below $21,500.00
Long-time regional foes Iran & Saudi Arabia agree to resume diplomatic relations & reopen embassies in each other’s countries following China-led negotiations in Beijing. Saudi Arabia cut ties w/Iran in 2016 after its embassy in Tehran was stormed during a dispute between the 2 countries over Riyadh’s execution of a Shi’ite Muslim cleric. In recent years Saudi Arabia has blamed Iran for missile & drone attacks on its oil facilities in 2019, as well as attacks on tankers in Gulf waters. Iran denies the charges.
A Peruvian judge Thursday, extended former president Pedro Castillo’s pre-trial detention to 3 yrs. Castillo, who was ousted & arrested in Dec, was already being held over charges of rebellion, to which prosecutors added criminal organization, collusion & influence trafficking. Castillo, has been imprisoned since 12/7, when he was arrested after attempting to dissolve parliament & rule by decree. The leftist leader had been trying to ward off a 3rd vote in Congress, to impeach him for alleged corruption

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