Silicon Valley Bank - Is the spook over again?
We have all experienced the stock market quake caused by the Silicon Valley Bank shutdown. $SIVB, we all noticed.
One or the other - preferably some stock market prophets who want to generate clicks - have conjured up a second 2008, as if the relatively small SVB was even remotely relevant enough for such an event.
In fact, I had little to no worries, but in spite of money in hand took and the $SPYD (-0.55%) and bought the stock strongly due to the setback. Whether that was a good decision in the medium term? Time will tell. But in the long term for sure.
Where have all those people gone who are always throwing around stock market phrases like "buy when the guns are roaring"? 👀
In the last half hour, I was suddenly bombarded with breaking news and the haunting of the last few days could soon be over.
Futures on the major U.S. indices are not overwhelming at the moment, but solidly up.
Dow Jones +0.94%
S&P500 +1.32
NASDAQ 100 +1.29%
Why is this?
The regulators have stepped in. SVB will not be bailed out, but customers should have full access to their funds tomorrow (Monday). The FED has used a $25 billion emergency program called the Bank Term Funding Program for this purpose.
"In a joint statement on Sunday, regulators, including Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell and Federal Deposit Insurance Corp. Chair Martin Gruenberg, said that depositors at SVB Financial Group, the parent of SVB, will have access to all of their money on Monday.
"After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the president, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, Calif. in a manner that fully protects all depositors," a joint statement said."
The FED is keeping a close eye on what is happening in the financial system right now and I am very sure that a second Lehman will not be allowed to happen.
Let's see what will happen in the next few days.
Maybe I'm too optimistic or naive, but I think we should start to loosen up after 3 years of permanent crisis mode and not always grind the devil against the wall.
The world / the stock market has already had to survive significantly worse events and not a few of them.
So just stay cool and collect dividends.
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