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Originally Posted by Firebot
Massive banking collapse in the US in the past 48 hours with a bank run usually reserved for countries like Argentina, Sillicon Valley Bank was taken over by the FDIC earlier today and has been all over the news in the US. The 16th largest bank in the US and 2nd largest failure ever in the US, just went poof after announcing a loss of 2 billions due to bad bonds. SVB is most notable for lending to tech and healthcare startups, meaning a lot of companies will not survive this collapse.
A sign of a 2008 like collapse, or an outlier? How many banks are at risk and not valuing their bond assets correctly including in Canada? Next few weeks will be quite interesting but one thing is near certain, rates are likely to stay stagnant or go lower at this point.
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Sounds like it’s not believed to be a contagion.