Silcon Valley Bank Black Swan

Silcon Valley Bank (SVB) Financial crash ripples across global economy

SVB fell over 60% in share value due to its inability to cover its liabilities and resulting receivership. The Bank was forced to sell its bonds at a loss of $1.6 billion.

The Bank, which funds tech companies, is a casualty of the aggressive higher interest rates. Apparently, the bank used short-term variable rate deposits for long-term fixed investments, and then interest rates spiked almost 5%, causing a massive default at the bank.

Other banks across the US and world were impacted with loss shareholder confidence and resulting lower share value.

The US dollar as well did a sharp drop.

Gold as a historic safe haven asset and real money soared upward over 36% increase in spot price.

Is the banking black swan an isolated incident or sign of more economic turbulence ahead?

Has the Federal Reserve lost control of the US economy?

Biden's 2024 budget of $6.9 trillion kicks the debt can further into the future, thereby postponing the inevitable correction.

Stephen.Garvey@EmergingGlobalRealities.com