of Fourth Bailout
That's right ladies and gentlemen.
A third bank has been claimed in this bank run.
Is anyone noticing a pattern yet?
- 4th largest US bank to collapse in history.
- 3rd largest US bank to collapse in history.
- 2nd largest US bank to collapse in history.
Signature bank is no more.
Signature's failure followed Silicon Valley Bank's Friday shutdown, the second largest in U.S. history behind Washington Mutual, which collapsed during the 2008 financial crisis.
Such 2008 vibes.
The FDIC established a "bridge" successor bank on Sunday which will enable customers to access their funds on Monday. Signature Bank's depositors and borrowers will automatically become customers of the bridge bank, the FDIC said.
As of September, almost a quarter of its deposits came from the cryptocurrency sector, but the bank announced in December that it would shrink its crypto-related deposits by $8 billion.
https://twitter.com/DanDarkPill/status/1635093537036578816
- DanDarkPill
I know what will fix this problem: more debt!
lol! Okay so these banks are being backstopped and the gubment is trying their damnedest to stop this contagion from spreading. Good luck, gubment. I wish you well on your journey.
Does anyone think it's hilarious that the "answer" to liquidity problems is to give banks access to bad loans so they don't go insolvent? Cracks me up every time.
THE FED IS BACKED INTO A CORNER
Last week Powell was as hawkish as ever. This week all that shit is going right out the window. The FED is finally backed into a corner of their own making. They cannot allow this contagion to spread. Many players in the industry are already making calls of a 0 point rate hike during the next meeting in three days.
It will be VERY interesting to see how this next FOMC meeting goes down. The market signals blood in the water for bulls on many metrics. I don't need to remind anyone that if the FED pauses in 3 days there is going to be wild speculation in risk-on markets with more pumps to follow.
When we take into account that FED rake hikes take 9 months to a year to actually cycle throughout the economy we can clearly see that more than half of the current hikes have not been realized yet. Six months ago the fund rate was half the number it is today. Not only can the FED not afford to hike more at this juncture, but the hikes they've already done are not sustainable in the least bit. The war on "inflation" has been lost. Too bad so sad... time to turn the money printer back on.
I cannot believe how well I called this.
We crashed down to EXACTLY the 2017 ATH at $19500 and hard bounced off of it. It's exactly what I said would happen since January. Seriously insane.
March is looking like it's going to end up like the V-shaped recoveries that we've seen in 2018, 2020, and 2022
LOL I wrote that on March 10th
Is this V-shaped enough for you?
Crazy times.
We can also see that once again like clockwork the MA(25) death-crossing under the MA(50) results in a pump. We'll probably need to expect a pullback eventually but my guess is that pullback confirms the $23k support line that has been forging for a while now. And let's not forget that this is all happening during the bullish full moon cycle (which ends March 21).
Goddess Moon signals that we have another week to go before we worry about a major pullback; again I'm thinking something like $25k to $23k before we can finally break that pesky $25k resistance line. But it could even crazier at this point like $30k to $25k if this momentum doesn't break. A move like that would actually be worth betting on in a week's time.
This situation is the exact reason why Bitcoin was created.
Imagine talking to yourself 5 years ago and trying to explain how bearish everyone is because the economy is doing poorly and the banks are being bailed out. IT'S IN THE BITCOIN GENESIS BLOCK: CHANCELLOR ON THE BRINK OF 2ND BAILOUT!
lol... this is the best thing to happen for Bitcoin in quite some time and people are drowning in fear like they always do. Actually it kind of reminds me of the Steem hostile takeover... man that sucked when it was happening but we came out smelling like roses, didn't we?
https://twitter.com/Pacemak3r/status/1634726014759710720
- Pacemak3r
All of the depositors of Signature Bank and Silicon Valley Bank will be made whole, and "no losses will be borne by the taxpayer," the U.S. Treasury Department and other bank regulators said in a joint statement.
"No losses will be borne by the taxpayer."
lol good one. Have you noticed that not only are we not in a recession, but also these are not bank bailouts and the burden will not be put onto the citizens? Comical. I can't believe they can so easily get away with saying shit like this. Empire in decline confirmed.
"This is crypto's fault."
We'll notice that the collapse of both Signature bank and Silvergate was pegged on crypto. And yet neither of these banks actually held any crypto. Yeah, they are lying. No surprises there. The SVB collapse proves once again that ALL BANK RUNS are catalyzed by fear and a loss of trust in fractional reserve banking. These banks didn't go under because they had exposure to crypto; they went under because people wanted their money back and they didn't have it. Simple as that.
It has been known well in advance that all stable coins in crypto need to have massive amount of liquidity available in case the market gets volatile. While everyone was making a big deal about Bitfinex maybe not having ONE HUNDRED PERCENT of their reserves at a bank in the form of USD, I've always been quick to point out that having 100% reserves in a bank is a stupid way to do business within the cryptoverse. Just because it's 100% pegged to dollars in a bank doesn't mean those dollars are actually available. Finally we get a taste of vindication on that front.
That being said of course USDC and DAI and BUSD have all regained their peg now that the banks have opened this Monday. Doesn't really matter because all the systemic risks that we just watch play out are still lingering in the background waiting to strike. Once again HBD proves that a 100% algo stable coin with high yields and death-spiral protection is the way to go. So so bullish on Hive right now it's not even funny.
Conclusion
There is so much more to be said on this topic but honestly I don't even know where to begin. This entire post is just a haphazard rant to get all the info out there as fast as possible. The fallout from this banking crisis is going to be a thing of legend, and the FED meeting is in three days. Be prepared for more fuckery.
lol
In the time it took me to write this BTC is up another $1000
WILD
Another thing I forgot to mention is that I bet my USD withdrawals from Coinbase to my credit union are going to be very slow now. They used to process within 1 business day. I have yet to see what the wait times are like now. Has anyone tested this?