Lots of articles related to SVB collapse in media. One in AFR...

Lots of articles related to SVB collapse in media. One in AFR particularly caught my attention with key points:

- markets are expected to plunge this week
- further runs on regional US banks are likely - queue of people outside SVB and regional banks trying to withdraw money - experts saying companies and individuals will start transferring their deposits from other regional banks on Monday leading to fresh run on other banks - it’s not just SVB that had exposure to the tech sector and crypto ( its seems crypto firms have lots of money with SVB - eg one has $5b) - it is possible depositors at SVB will only get 50% back on Monday/Tuesday this week and the rest in 3-6 months - no one will take a chance of that happening to their deposits in other regional banks and will want to get their money out
- while SVB had a dangerous exposure to VC and crypto space it’s failure was largely a guide to the health of other bank deposit levels - ie lots of banks have very underwater bond portfolios
- markets are now betting the probability of a 0.5% Fed increase is 40% down from 80% - IMO there is a chance of a 0% increase if there is significant contagion.

All sounds like it’s a very uncertain and volatile chaotic situation that may become significantly worse.

Its going to be a very interesting week.

Guess what this is good for?