Billions Worth of Crypto Trades at Risk as Bank Shutdowns Take Toll...

Crypto: I just avoid it as if it were an open sewer, full of malicious organisms,” Munger said in an interview with the Australian Financial Review.

• Nassin Nicholas Taleb on Crypto / Bitcoin     (Internalize)

• "'It turned out that one of the biggest risks to our business model was catering to a very tightly knit group of investors who exhibit herd-like mentalities,' said a [SVB] executive.... 'I mean, doesn’t that sound like a bank run waiting to happen?'" https://ft.com/content/b556badb-8e98-42fa-b88e-6e7e0ca758b8

 

Quick Overview is up to date

• Silicon Valley Bank chief pressed Congress to weaken risk regulations 😫Touting “SVB’s deep understanding of the markets it serves, our strong risk management practices”.....

• German banks also suffering due to SVBC collapse. German Bank index at 1980 levels..

 

SVB_Financial: As expected, libertarians a screaming loudest - they need to be bailed out, FIRST!

"Where is Janet with "my" check?"

Notes today: 

• First Flight of Regional Jet Powered by Hydrogen Fuel Cells–40-Seater is Largest Ever to Fly.

• One brokerage estimates that there will be about 330 million square feet of excess office space by the end of the decade.

• WHO: there have been about 677 million covid cases and 6.9 million death.

• Alphabet’s CEO Sundar Pichai thinks that generative AI (ChatGPT / Microsoft) will be “more powerful than fire or electricity”. 😕

S&P 500 stocks at 52 week lows          (0 at 52 week highs)               

SIVB.O	SVB Financial Group Ord Shs	106.04	-161.79	-60.41%
SBNY.O	Signature Bank Ord Shs	70	-20.76	-22.87%
FRC	First Republic Bank Ord Shs	81.76	-14.25	-14.84%
SCHW.K	Charles Schwab Ord Shs	58.7	-7.77	-11.69%
ARE	Alexandria Real Estate Equities REIT Ord Shs	126.8	-12.04	-8.67%
BXP	Boston Properties REIT Ord Shs	57.44	-4.5	-7.27%
LUMN.K	Lumen Technologies Ord Shs	2.68	-0.2	-6.94%
DISH.O	DISH Network Ord Shs Class A	10.53	-0.76	-6.73%
TFC	Truist Financial Ord Shs	38.84	-2.78	-6.68%
PEAK.K	Healthpeak Properties Ord Shs	21.42	-1.53	-6.67%
LNC	Lincoln National Ord Shs	25.66	-1.68	-6.14%
NWL.O	Newell Brands Ord Shs	12.24	-0.78	-5.99%
VFC	VF Ord Shs	21.78	-1.23	-5.35%
CMA	Comerica Ord Shs	58.81	-3.1	-5.01%
VNO	Vornado Realty Trust REIT Ord Shs	17.11	-0.77	-4.31%
FITB.O	Fifth Third Bancorp Ord Shs	30.37	-1.32	-4.17%
HAS.O	Hasbro Ord Shs	49.21	-2	-3.91%
CPT	Camden Property Trust REIT Ord Shs	106.91	-3.88	-3.50%
CF	CF Industries Holdings Ord Shs	78.47	-2.64	-3.25%
MTCH.O	Match Group Ord Shs	35.49	-1.16	-3.17%
TRMB.O	Trimble Ord Shs	48.28	-1.48	-2.97%
WRK	Westrock Ord Shs	29.81	-0.9	-2.93%
JKHY.O	Jack Henry and Associates Ord Shs	158.08	-4.73	-2.91%
PAYX.O	Paychex Ord Shs	107.83	-3.22	-2.90%
AIZ	Assurant Ord Shs	116.75	-3.13	-2.61%
OGN	Organon Ord Shs	22.68	-0.59	-2.54%
BAX	Baxter International Ord Shs	38.02	-0.97	-2.49%
ZION.O	Zions Bancorporation Ord Shs	40.35	-1.01	-2.44%
AKAM.O	Akamai Technologies Ord Shs	71.96	-1.74	-2.36%
D	Dominion Energy Ord Shs	53.21	-1.06	-1.95%
IFF	International Flavors & Fragrances Ord Shs	84.64	-1.43	-1.66%
SBAC.O	SBA Communications REIT Ord Shs Class A	240.12	-3.65	-1.50%
MKC	McCormick & Co Non-Voting Ord Shs	70.95	-1.05	-1.46%
MTB	M&T Bank Ord Shs	131.72	-1.92	-1.44%
MMM	3M Ord Shs	104.06	-1.46	-1.38%
AAP	Advance Auto Parts Ord Shs	128.04	-1.79	-1.38%
HRL	Hormel Foods Ord Shs	39.18	-0.54	-1.36%
BFb	Brown Forman Ord Shs Class B	61.52	-0.77	-1.24%
BMY	Bristol Myers Squibb Ord Shs	65.71	-0.8	-1.20%
EA.O	Electronic Arts Ord Shs	109.19	-1.27	-1.15%
TSN	Tyson Foods Ord Shs Class A	56.98	-0.66	-1.15%
CNC	Centene Ord Shs	65.1	-0.44	-0.67%
PNC	PNC Financial Services Group Ord Shs	137.16	-0.71	-0.51%
PFE	Pfizer Ord Shs	39.39	-0.07	-0.18%

 

 

Notes today:

• Banks F*****Up regularly  – you can count on it! Same old movie different actors..

• Regulators took over California-based Silicon Valley Bank on Friday in the second-biggest bank failure in US history. 
• "There is never just one cockroach in the kitchen" Warren Buffett
• Stablecoin (“stablecoins“  hilariously named) giant Circle Internet Financial Ltd said $3.3 billion of its about $40 billion of USD Coin reserves remain at Silicon Valley Bank...
• USDC's normally stable price sank to $0.89 from $1 while Ethereum gas fees soared hours after the crypto-tied bank failed.
• The ramifications of the Silicon Valley Bank (SVB) crisis have spread to Sweden. SVB's plunge wiped out more than half of the value of the holdings that Alecta — Sweden's largest pension fund — had in the bank.

• Russia: The life expectancy for young men is now as low as for men in Haiti—and lower than in Bangladesh. (Economist) 

• China hiked its defense budget by 7.2 per cent, marginally higher than last year, to 1.55 trillion yuan (about USD 225 billion), marking the eighth consecutive year of increase in its military spending. China is the second biggest spender on defense next to the US whose defense budget for 2023 totaled USD 816 billion.

 Why central banks are stockpiling gold

 

Economics, simply put

 

There is a limit to the amount of information that a person can absorb. This means that choices which they believe to be informed and rational can look irrational to someone with greater knowledge. As any behavioural economist worth their salt could tell you, this theory of decision-making is known as “bounded rationality”.

 

But you’d be forgiven for not knowing that. Economics is littered with complicated-sounding ideas that, once grasped, help to make sense of the world. So we have published a glossary of economic terms, explained in plain English. Our A to Z of economics includes almost 500 cross-referenced entries. Some link to longer explainer articles exploring the topic in more detail. And we’ll keep adding to the list. So the next time you’re puzzled by the Nash equilibrium or struggling to explain quantitative tightening you’ll know where to look. We hope it offers you an absolute advantage (which is also, conveniently, the first entry on the list).