 Silicon Valley Bank it's everybody's talking about and for good reason. I got to tell you I think this is Bigger than what I thought it was and I think there's going to be some pretty big bank runs coming up sorry tomorrow and If we of course everybody's talking about it, but this is the truth So look on Valley Bank is bigger than what I thought it could have been and the things that were going on It's really just come becoming a contagion issue. This is a nice little infographic From a friend of the show guy from coin bureau And he just says like look, this is the bubble that represents the size of assets of all us bank failures And so look on valley is right up there. I mean 209 billion dollars and some people say well, that's not that much money robbing 209 billion It's the strategic Of that money and where it is placed and where it is going to I think that's the bigger issue at large And there was a tweet that was put out and this was by alexander Toring negra. I think I nailed that one He's the CEO of tour.co and he was it's just a an anecdotal Tweet that was put out by somebody who was caught in the crosshairs Of what happened with silicon valley bank and getting the funds out and when you read this I'm not going to read the whole thing. I linked it in the description I want you to read it But when you read this tell me if first of all tell me if this doesn't sound like The exact same feeling you had if you were with celsius or with you with voyager Or if you're with ftx or if you were with block fi or whatever else coming on the future But when you read this you like this is the exact same thing So, I mean i'll just say this is how fast it happened thursday at 9 a.m There's rumors about things that are about to collapse and they were able to get a little money out friday Friday at 7 a.m Nothing That's how fast this moved and he just pretty much comes out and just says, you know I question my ability to be an entrepreneur, but i'll bounce back But for me, I just think it's the same thing that we've seen In the crypto space and there's also been some I mean not just that and that's interesting But there's some misinformation that was put out And I wanted to go over this. This is jim bianco from bianco research I like this guy. I got some great data really great information good to follow on twitter President of the bianco research made the rounds a lot of good info And he says he goes look this isn't a solvency an insolvency crisis like 2008 Bad loans or poor investments were not made money was not lost and everyone Is going to get their money back the question is when and the question the bigger question is is The population at large is already nervous about the Upcoming or pending recession and the problems that we hear so when we hear about There's earnings reports are going down Fed rates are going up inflation is is hopefully under control, but it's going up unemployment rates are are going up And they hear about a potential recession And then all of a sudden they hear about bank runs People That are out there. They're just like it just starts spinning the wheels before you know it You're going to have a lot of people going to banks going give my money now Anyhow jim says look and said this is not an insolvency issue. It's an old-fashioned 1930s liquidity crisis too many depositors Demanding cash at once. Well, that's the problem when you have fractional reserve lending, which is what banks do This is why somebody demanded their money back at once first welcome to the world of mobile banking Gone are the frictions of standing in line with tellers Instructed account money slowly 42 billion got withdrawn in friday alone This should scare the hell out of bankers and regulators worldwide the entire 17 trillion dollar deposit base is now on a hair trigger Expecting insoliquity. This is how it happened. This is how everything happens nowadays social media millions get a message Peter teal comes out and says look if you're a founder If you're in vc territory and you're with this bank pull it all out now And then of course you also had senator was elizabeth warren and talking about like look There's something there's some kind of problem with these banks and there's gonna be around the bank and that led to Everybody going I'm gonna get my funds out and unfortunately the people that tried couldn't so He says this is that that's the first thing that happened Second the other problem is that banks are over reserved 14 years of quantitative easing and banks are still paying 0.5 percent Which I gotta tell you it's pretty good. My bank doesn't pay that Uh on accounts when t-bills are yielding yielding 5 percent. Why would you you know like some people will just say like Why would you put your money in a bank if you can get 5 percent on t-bills? That's why they're taken out of the bank because the liquidity problem people are putting into treasuries and going I'm getting 5 percent at 3 months 6 months 12 months or whatever else it is Actually, we had a meet-up yesterday. I was talking to a gentleman who works in finance He goes you know what all all of my big-name clients They're asking me for the exact same thing t-bills. They're telling me what gets me the most amount of money So he tells them they say okay put it in that take it all because that is risk-free quote-unquote Uh, and then he says look, you know the banks can do You know 0.5 percent and when it was when the t-bills were two three and four the public didn't notice now at five They're all noticing what needs to be done fdic needs to raise the deposit insurance ceiling too unlimited As they did in 2008 debatable, okay? I mean that's a good information And then banks need to raise the rates they pay Because 0.5 percent is paltry. Why do they pay such a low amount so they can be profitable? Now they're now it's either you either slash your profitability or do you go under? And that's where the banks are at Uh, otherwise if they don't do this we are we are all waiting for the fed to start a meeting at 11 30 monday because That's how banking hours work And hundreds of billions of deposits will have moved by phone and it'll be far worse because guess what when those banks open tomorrow You better believe me a lot of people on the phone going transfer out and what he's talking about is this Jerome Powell on the crew Said look we better have an emergency meeting on monday because there's some things going down and of course look at the FOMC meetings that was not planned It's supposed to be for march 21st and 22nd They're calling an emergency meeting amid the svb silicon valley silicon valley bank Collapse And this is those going to be march 13th It's going to be 11 30 a.m The board will review and determine the advance and discount rates to be charged by the fed reserve banks during the meeting on top of that There's also been rumors By us is discussing a fund to backstop deposits if more banks fail look The government doesn't move that fast So if they already had this on on their radar, this has been happening in the background for quite some time there's also something else that's I found interesting and this is from this is a tweet from bill ackman And we don't know who bill ackman is a billionaire and I said here I said take it with a grain of salt because bill during the Pandemic crisis also said the hell is coming on cnbc during the pandemic And because of that he netted two billion in profits great story. Good for him And I said, can you imagine only getting 50 back than the rest three to six months? He says this from a source. I trust again just sources svb finance depositors will get 50 on monday and tuesday and the balance based on realized value over the next three to six months Do you imagine that? Well, first of all if you're in celsius or you're in block fire and voyage or fdx you're like that's a pretty good deal I'll take that right now But for the normies that are out there, can you imagine those people right now going? Hey, I got a bunch of money in there I got to pay My depositors. I got to pay payroll. I got to pay for my bills. I got to pay for all these things And they can't this is new to them to us. It's just well. It's just a sunday And so this was true. I expect the banks will be getting well the bank runs beginning monday will be at a large rate And I started to think about this. I'm like, well, if that's the truth And the bank runs do start on money, which I do think it will actually happen Not all the banks, but you can see a lot of people are scared already For the reasons we just talked about I started to ask myself this well How many businesses are actually affected because silicon valley bank is at a bunch of retail It's a large industries companies loans for startups and vcs and like what's been affected well You can just see like we talked about it's not just that the amount of money It is the money that has been put in for these different businesses and the strategic location of that money. So roku Big company on on on everybody's tv Company is a total cash and cash requirements of approximately 1.9 billion And 487 million has held that silicon valley bank Which is about 26% and again if we're talking about fdic Out of that 407 million know what's insured $250,000. Good luck Roblox three billion of cash and securities approximately 5 or 150 million Hella silicon valley yinco bio works setting for a million or six percent Sangamah therapeutics 34 million rocket lab 38 million lending corporation 21 million does not be a big risk and the winner lemonade That's less than $7,000 in cash svb. Congratulations but Don't celebrate just yet because it's just one bank. Who knows where the other ones are going and then also if we take a look at startups This is going to affect me. I think Silicon valley industries such as air bnb door dash and dropbox are scrambling to make payroll After their bank assets were received by us regulators on friday because they were at silicon valley bank so right now me and the wife We have a bunch of different properties for air bnb. Who knows if those payments are going to go out. I don't us I'm not here to assume That they put all the money in silicon valley bank, but you see what i'm talking about here You have these industries these businesses going okay. We don't know where the money is coming It's going to be payback at some point, but now we got a problem Because the amount of money that comes back will be delayed and when we have A delay and payments that freaks you out that freaks me out that freaks everybody out. What do you do? I got to get all my money out of there I got to tell you I got more calls and more tax from people I've heard from forever I like rob. Where should I put my funds? What should I do? Should I be safe these banks? I don't I'm like, well You know, I told you diversify a little bit. Maybe you should have bought some of that bitcoin I was talking about a long time ago So there's that And then there's also this This is pretty dirty from unusual wales And this was in response to bill's tweet. He goes bill this may interest you before the class executives at svb sold shares Uh Gregory becker ceo said 11 percent on february 27th michael zucker counsel 19 percent Daniel beck cfo 32 percent on february 7th and michael draper cmo 25 percent on february 1st So I'm not here to say that They're insiders they deserve clawbacks. Whatever. I'm not saying that I'm just saying if this is a usual occurrence Well, so much the better but uh, to me it kind of looks a little suspect and maybe They're doing the old celsius playbook taken funds out As they collapse from the inside, but that's just here to say I have no idea. Don't sue me This is just the information that I have gotten so What does this mean for crypto? Well, it's looking pretty good and actually finance just put out usdc coin has been listed on finance futures. So you want to put it on our futures go right ahead, but I will say this Was this not what bitcoin was created for It was created because of the 2008 2009 financial crisis It was to help us to avoid situations like this So is this the time for bitcoin and crypto to rise? Potentially because you got to take a look at the market cap right now. First of all, I went over a trillion Last 24 hours bitcoin's up 6% Not saying that it's going to go to the moon or 69 thousand hundred thousand dollars Although that'd be pretty sweet. That's not on my plan though. I'm trying to dca for the next two years. Come on But I mean look theorems up seven percent b and b four percent and usd coin, which was depig There's roughly 96 almost 97 cents. I think you have to 98 cents at one point Xrp, which should be up a lot more 0.7 current on five polygons seven almost eight percent State deep almost eight percent and you just see like around here. I mean It's pretty good. I don't know what the stock market's going to do on monday But I gotta tell you I don't see them crushing it. Hey near protocol I don't see them crushing it anytime soon. So that's what we have and um That's the big thing. So that's what we have for the news for today. Lastly Before we get into the chats and I answer some of your questions the best of my abilities I just want to say thanks everybody Uh for coming down and helping to walk the shelter dogs. We had every sunday 8 a.m meme and steve from uh Sam won small cost was there a bunch of the people max and brian Family and we get to walk uh all the dogs. They appreciate it and look You can't do anything about the bank run. You can't really do much right now So you might as well get out and step away from the computer screen because Nothing really you can do hope for the best Prepare for the worst here. We are maybe get outside or maybe just have a Sit around with me and do a little Q&A So that's it for today. So look like this video thumbs up subscribe all that good stuff That always helps with the algorithm for some reason and uh or just comment It could be positive negative. I don't care Just something in there and that's it now Let's get into a little Q&A and uh, we will go from there Let's do this Yes vicki