The Federal Deposit insurance Corporation (FDIC) “protects your money in the unlikely event of a bank failure.  The standard insurance amount is $250,000 per depositor, per insured bank…” In the case of Silicon Valley Bank, 97% of all deposits (by value) were uninsured. These were deposits beyond the $250,000 cap. That Just Changed In a joint…

Before it failed, Silicon Valley Bank had lots of cash and a low ratio of outstanding loans. Their fatal mistake:  They parked the majority of their money in US Government Bonds. (You know, the safest, most risk-free asset in the world.) SVB put $119.9 billion into low-interest, long term government bonds, like 10-year Treasury notes.…

Here’s a fun game…  After one bank collapses, who else will fail or sell out? It’s Monday morning.  Start your watches. This is the most common, knee-jerk phrase about the Silicon Valley Bank collapse on Friday, March 10, 2023… “It’s just one bank.” This phrase must be stated quickly and with authority. I’ve heard it…