No good news so far!
This is the best thread I could find on the SVB situation.
If the Fed / Government does not protect all depositors before the market opens on Monday, this will be huge! Bold statements are needed fast!
The problem is that most people do not know that their deposits are not secured (250k are, but will people differentiate in a panic? Also, your employer has more than 250k in a bank and if they start to panic… think it through!).
Bill Ackmann: “My back-of-the envelope review of SVB’s balance sheet suggests that even in a liquidation, depositors should eventually get back about 98% of their deposits, but eventually is too long when you have payroll to meet next week.”
“too long” is the problem here. “Too long” will create a panic!
Dollar down and interest rates up is not a sign that we get a rally here, it is the other way around, this is bearish!
It basically means, that that the bond market expects lower rates BECAUSE (!) we are in trouble!
Protect your assets, raise cash and buy hedges. Try to freeze your portfolio in a way that you will not be hurt by falling or raising prices.
But so far, I cannot find information that all deposits are protected fast. Still some time before markets open.
But once again: if they do not tell markets that they will protect all depositors fast (not months, not weeks: days!) this will turn very, very ugly!
Best Regards
Andreas