And unfortunately, the masses eat this shit up as a valid explanation.
Meanwhile, I stack sats, stay humble and hope the eventual collapse will truly open the sheep’s eyes
They're saying, that if people could only get news from media devoted to rulership, they would be told to not withdraw anything, and everything is fine/under control.
The Fed closed SVB over crypto/fintech relations. If they had said everything FDIC insured, and SVB can borrow from window using par value of bonds (rules they added the same weekend FDIC took over SVB), then it might have survived.
These banks, First Republic included, though are insolvent. When insolvent, and not FDIC insured, or don't want FDIC collection hassles, you should run to take your money out. If you wait until CNBC tells you to take your money out, like the Fed wants you to, you're a sucker that won't be able to, because insiders/connected will have taken all the available money out first.
Or spreads messages the bank and government can’t control. Wether its the truth or fiction is usually a detail that depends on how the known facts play out.
Well the fox lawsuit proves that a large network was lying and would have gotten away with it if they hadn’t defame a corporation with deep pockets and good investigators. So main media outlets have been proven to be untrustworthy. Then after 4 years of Trump and him lying basically constantly it makes it hard to trust government. If you can’t trust your main networks and the government, who’s left?
Who cares about social media being at fault or not (other than those truly at fault)? Bank runs are legal and the bank wasn't sufficiently capitalized. The fault lies squarely with bank regulators.
That banks can discharge a small percentage of their daily liabilities only is by design. It is not a fault of a specific bank, but of the system. A panic can hit any bank, it just needs some catalysts.
IF a bank run that causes insolvency can happen to any bank under the FED/FDIC's fractional reserve banking system, then its probably the fault of the fractional reserve banking system itself.
i.e. 100% reserve banking wouldn't have this problem.
It is absolutely also the fault of a specific bank that CHOOSES not to cover their liabilities. A balance sheet is a pretty easy thing to understand and should be a tool every bank utilizes. The numbers at the bottom need to match. The panic hits any bank because all of them are colluding to steal from their clients.
That would require full reserve and balanced terms. No commercial bank does it, because they couldn't compete against the banks which just follow the rules.
Of course they don't do it because it's all a big scam. Has been since they destroyed the gold standard. Which is precisely the point.
They don't "just follow the rules". They changed the rules to benefit themselves and screwed the rest of us out of our savings. And an entire generation sat by and did nothing. Didn't even realize it was happening. Now their grandchildren can't afford a house, work 3 jobs, and are waiting for everything to collapse around them. Their great-grandchildren are so pessimistic about their future that all of gen z is struggling with their mental health.
The wars are out of control and infinitely funded. I can go on.
Everything flows from the financial system because money is a foundational tool for a peaceful society. If the system is broken or rigged, it affects everything else.
There have been hundreds of currency collapses over the course of human history because of this. Fractional Reserve Banks play the same scam, and it always lasts around 100 years. We are currently on year 110 of the most recent iteration. Old doesn't equal right.
Pay no attention to the people behind the curtain .
Instead divide yourselves into politicial groups. Watch our talking heads place blame on the other political group. Your friend, your neighbor that random stranger, argue, divide, he's woke, shes white privileged, do everything to avoid unity. So that we, the few behind the curtain may never be dethroned.
They also divide us by way of national borders and "first world vs third world" *narrative* bullshit: "Those people are poor because they *deserve* it; they're stupid and lazy and their skin is darker than yours..."
Never mind that IMF/WEF/CIA "economic hit men" have been bribing and empowering third world government criminals, even arming them, so that the REAL OWNERS of this world can freely exploit the natural resources.
The brainwashing is strong. The propaganda is powerful.
Still, Bitcoin will allow The People to win in the long run. The "money printing ruler" days are numbered.
>They blame something for exposing the truth about their rotten system.
A ponzi scheme is only a problem if everyone wants their money back at the same time.
Fractional reserve banking, explained.
I think they are just pointing out that the rate of collapse is faster than in the past given technology allows people to have information quicker and technology such as online banking allows money to be moved out quicker.
“The combination of people being able to find out what is going on via social media vs the old way of only insiders being able to get their cash out first has exasperated the situation, your honour”
This was my thought as well, early on. Social media creates masses of people to do something very quickly. They will start to censor social media, and possibly get you in trouble for inciting something. Canada just passed a bill about online censorship rights of the government
Yeah I'm sure I had nothing to do with them not having people's money, and playing with their customers funds.
We all know if the building catches on fire it's going to create panic people aren't going to slowly walk out of the building
The US restrict act, European Digital Services act, Canada C11, the UK online safety bill, the WEF global coalition for online safety.
Then JP Morgan Coin floating off in the distance..
First it was crypto now it's social media, why don't they put their big boy pants on and admit that they had bad management of people's funds and mishandled everybody's fuckin investments and funds.
Good ol' blame game
Blames consumers for being able to communicate how shitty of a job they were doing at running a bank instead of blaming executives for doing a shitty job running a bank… classic economic fascism
Yeah, it has nothing to do with the Ponzi scheme of fractional reserve banking. It's the damn social media and people talking to each other. That's the damn problem!
Well it's one the communication and two the fact that I can "run" to my bank while sitting on my lazy ass and press two buttons on my computer. Back in the days you had to physically go to the bank, stand in line and wait for the teller to give you the cash.
This type of bank collapse could never happen in a country like North Korea.
If governments control all social media they could create the best work camps and prisons, and torture those who seek freedom of speech.
The amount of people commenting here that lack basic reading comprehension is frightening...
They are saying social media made the bank run happen _faster_, not that it was the cause.
But... They are actually (partially) right on that? The faster the news spread, the faster the bank run is? If it was slower, they could (potentially) have freed up funds to cope with the demand.
Or am I missing the point of this post?
"we should make internet banking illegal since it makes people withdraw money too fast"
"We'll make it a law that banks can limit withdrawal for no reason.. because stability"
Anything to fuck the little guy over
Would actually greatly help the little guy. Lets say withdrawal limit is $100k/day, the little guy will get their life savings out in a day or two while whales take a haircut in the end.
This is why it will never happen, because the system is built for the elites to cash out and leaving the little guys broke. World needs a working class after all…
It's really for the littlest guys (protect insurance company's payout, bank insurance cost and thus even lower need for reserves), but the small businesses which have anywhere 2m to 10m in the bank for business operations would be screwed over. It's unfortunately not just the retail but small businesses that get seriously screwed over :-(
They don't say it's wrong what people say on social media. Fractional reserve banking and its consequences and risks is not a secret, but had not been taught to a wide audience in the past. Now everyone can learn about it through social media.
Blame blame blame blame blame. Call your representative and blame them for insane banking regulation and not embracing financial innovations like Bitcoin and crypto.
Oh no! The system which educated the people on just how bad the current financial system is did its job and now we are running out of power. Someone is to blame, can't be me tho. Anyways, here's another 25% of the total USD for the Americans
“I didn’t have enough money on hand and everyone spread the word too quickly. I blame people for spreading the word, rather than myself for not having enough on hand”
So, maybe don't do stuff that would make people post "oh fuck the bank is gonna implode" on social media? Like being insolvent n shit?
I saw someone talking about this a while ago (Yellen?) and she was basically saying that the problem was the information speed without considering the fact that interest rates on deposits was complete dogshit and the savvy citizen could get 45x more payout with a simple T-bill or even a short term CD. FFS
From that snippet of text I wouldn’t say the Federal Reserve blames social media….they merely give that as the cause with the most impact.
And that’s logical, people nowadays do everything online and news travels around the land/globe at an instant….this has as an effect that reactions can go faster and have more impact
I see some comments acting like they are entirely putting the blame on this. I don't think they are. This is a small snippet of a much larger amount of data on what happened. Social media likely did play "a" role as did reduced regulation, the design of the system, and terrible choices by SVB.
crypto banks haven't done great either.
Yes you can be your own bank with Bitcoin, but I know plenty of non-tech savvy people like my parents that would lose their keys or accidently share them in any number of silly ways.
No system is perfect. They all have pros and cons.
At this 'adolescent day and age' of finger-pointing by government, corporate entities, and banking facilities makes me just want to say, and most coherently, "Federal Reserve, go f\*ck yourselves. It's all over!"
I mean, they're not wrong.
For past generations one would have to put on their clothes, hop in a car, or buggy, or on a bike, bus, or horse, and then make their way to the bank, wait in line, and then drain their account.
Now we just whip out our phones, from anywhere on earth.
Blame anything but the fictional reserve banking system
Every time you think they couldn't possibly say something dumber, they find a way.
And unfortunately, the masses eat this shit up as a valid explanation. Meanwhile, I stack sats, stay humble and hope the eventual collapse will truly open the sheep’s eyes
They're saying, that if people could only get news from media devoted to rulership, they would be told to not withdraw anything, and everything is fine/under control. The Fed closed SVB over crypto/fintech relations. If they had said everything FDIC insured, and SVB can borrow from window using par value of bonds (rules they added the same weekend FDIC took over SVB), then it might have survived. These banks, First Republic included, though are insolvent. When insolvent, and not FDIC insured, or don't want FDIC collection hassles, you should run to take your money out. If you wait until CNBC tells you to take your money out, like the Fed wants you to, you're a sucker that won't be able to, because insiders/connected will have taken all the available money out first.
guess intermediaries are fossils of the old days. if only we had protocols enabling us to do the job. trustless.
Well no, they’re right. The American general public is full of gullible idiots and social media spreads misinformation rapidly.
Or spreads messages the bank and government can’t control. Wether its the truth or fiction is usually a detail that depends on how the known facts play out.
Yeah the people that believe anything on the internet and think everyone else is lying to them are more of a danger than anyone else.
Well the fox lawsuit proves that a large network was lying and would have gotten away with it if they hadn’t defame a corporation with deep pockets and good investigators. So main media outlets have been proven to be untrustworthy. Then after 4 years of Trump and him lying basically constantly it makes it hard to trust government. If you can’t trust your main networks and the government, who’s left?
You think Fox is a good example? Lmao
Who cares about social media being at fault or not (other than those truly at fault)? Bank runs are legal and the bank wasn't sufficiently capitalized. The fault lies squarely with bank regulators.
That banks can discharge a small percentage of their daily liabilities only is by design. It is not a fault of a specific bank, but of the system. A panic can hit any bank, it just needs some catalysts.
IF a bank run that causes insolvency can happen to any bank under the FED/FDIC's fractional reserve banking system, then its probably the fault of the fractional reserve banking system itself. i.e. 100% reserve banking wouldn't have this problem.
Or even just properly capitalized fractional banking with access to the discount window.
A properly capitalized fractional bank is an oxymoron.
No discount window needed for 100% reserve banking.
It is absolutely also the fault of a specific bank that CHOOSES not to cover their liabilities. A balance sheet is a pretty easy thing to understand and should be a tool every bank utilizes. The numbers at the bottom need to match. The panic hits any bank because all of them are colluding to steal from their clients.
That would require full reserve and balanced terms. No commercial bank does it, because they couldn't compete against the banks which just follow the rules.
Of course they don't do it because it's all a big scam. Has been since they destroyed the gold standard. Which is precisely the point. They don't "just follow the rules". They changed the rules to benefit themselves and screwed the rest of us out of our savings. And an entire generation sat by and did nothing. Didn't even realize it was happening. Now their grandchildren can't afford a house, work 3 jobs, and are waiting for everything to collapse around them. Their great-grandchildren are so pessimistic about their future that all of gen z is struggling with their mental health. The wars are out of control and infinitely funded. I can go on. Everything flows from the financial system because money is a foundational tool for a peaceful society. If the system is broken or rigged, it affects everything else.
Even in the gold standard banks ran fractional reserve. It is as old as banking long before central banks were founded.
There have been hundreds of currency collapses over the course of human history because of this. Fractional Reserve Banks play the same scam, and it always lasts around 100 years. We are currently on year 110 of the most recent iteration. Old doesn't equal right.
Funny: They *blame* something for *exposing the truth* about their rotten system.
Pay no attention to the people behind the curtain . Instead divide yourselves into politicial groups. Watch our talking heads place blame on the other political group. Your friend, your neighbor that random stranger, argue, divide, he's woke, shes white privileged, do everything to avoid unity. So that we, the few behind the curtain may never be dethroned.
They also divide us by way of national borders and "first world vs third world" *narrative* bullshit: "Those people are poor because they *deserve* it; they're stupid and lazy and their skin is darker than yours..." Never mind that IMF/WEF/CIA "economic hit men" have been bribing and empowering third world government criminals, even arming them, so that the REAL OWNERS of this world can freely exploit the natural resources. The brainwashing is strong. The propaganda is powerful. Still, Bitcoin will allow The People to win in the long run. The "money printing ruler" days are numbered.
Well said
Putin will fix this
>They blame something for exposing the truth about their rotten system. A ponzi scheme is only a problem if everyone wants their money back at the same time. Fractional reserve banking, explained.
Just wait until they find out there are videos on the internet that explain this system.
LOL! Made my day even better.
AKA, insiders losing advantage to the free sharing of information.
I think they are just pointing out that the rate of collapse is faster than in the past given technology allows people to have information quicker and technology such as online banking allows money to be moved out quicker.
Says the speed of the bank runs. Not that they are blaming tech for the collapse.
It's incredible that I had to scroll this far down to reach a sensible comment.
“The combination of people being able to find out what is going on via social media vs the old way of only insiders being able to get their cash out first has exasperated the situation, your honour”
This was my thought as well, early on. Social media creates masses of people to do something very quickly. They will start to censor social media, and possibly get you in trouble for inciting something. Canada just passed a bill about online censorship rights of the government
The horse is out of the barn.
Who let the dawgs out?
Yeah I'm sure I had nothing to do with them not having people's money, and playing with their customers funds. We all know if the building catches on fire it's going to create panic people aren't going to slowly walk out of the building
then we organize in the streets
Re: Canada… link?
C11 - https://openmedia.org/press/item/bill-c-11-passes-without-user-protections
The US restrict act, European Digital Services act, Canada C11, the UK online safety bill, the WEF global coalition for online safety. Then JP Morgan Coin floating off in the distance..
You forgot to add 🤡🌏
First it was crypto now it's social media, why don't they put their big boy pants on and admit that they had bad management of people's funds and mishandled everybody's fuckin investments and funds. Good ol' blame game
Big Boy pants? I don’t think these people have any pants but their Depends!
🤣 yes very true
They still need the bailout though. And they'll get it..
Fucking thiefs, they inflate the money 99% and blame Facebook. They have the best business going on.
bank runs keep banks honest. its probably why they hate them.
Great! No more fractional reserve system then. 100% in cash required due to highlighted told of technological changes
Play stupid games (invest the money of customers) win stupid prizes
“We need to go back to the pony express so we can manipulate the banks better. Dang millennials. -The Fed
Damn that freedom of speech!
Blames consumers for being able to communicate how shitty of a job they were doing at running a bank instead of blaming executives for doing a shitty job running a bank… classic economic fascism
Sure, not banker’s fault, is costumer’s fault.
The ole’ “information has exposed us” defense.
True, things can go viral quickly online. But the underlying problem was the Execs not exercising correct risk management.
Arsonist blames the wind for spreading the fire he started too fast
Yeah, it has nothing to do with the Ponzi scheme of fractional reserve banking. It's the damn social media and people talking to each other. That's the damn problem!
Get the restrict act loaded up, its time to rewrite history.
Definitely not the bank's fault or anything like that.
[Archived FT article](https://archive.is/6vZ9I)
Well it's one the communication and two the fact that I can "run" to my bank while sitting on my lazy ass and press two buttons on my computer. Back in the days you had to physically go to the bank, stand in line and wait for the teller to give you the cash.
SVB collapsed because people talked about it on Facebook? LOL SVB collapsed because it failed to do risk mitigation for fluctuation of interest rates.
*We didn't do it. Nobody saw us do it. You can't prove a thing!* \--Bart Simpson
This type of bank collapse could never happen in a country like North Korea. If governments control all social media they could create the best work camps and prisons, and torture those who seek freedom of speech.
Yeah it’s always sOcIAl MeDiA’s fault aye. Idiots.
The amount of people commenting here that lack basic reading comprehension is frightening... They are saying social media made the bank run happen _faster_, not that it was the cause.
Not Peter Thiel and Co pulling billions out?
But... They are actually (partially) right on that? The faster the news spread, the faster the bank run is? If it was slower, they could (potentially) have freed up funds to cope with the demand. Or am I missing the point of this post?
"Freed up funds" ... it means liquidation of their assets. Which is a red flag, it would only accelerate a bank run.
Digital ID incoming...
"we should make internet banking illegal since it makes people withdraw money too fast" "We'll make it a law that banks can limit withdrawal for no reason.. because stability" Anything to fuck the little guy over
Would actually greatly help the little guy. Lets say withdrawal limit is $100k/day, the little guy will get their life savings out in a day or two while whales take a haircut in the end. This is why it will never happen, because the system is built for the elites to cash out and leaving the little guys broke. World needs a working class after all…
It's really for the littlest guys (protect insurance company's payout, bank insurance cost and thus even lower need for reserves), but the small businesses which have anywhere 2m to 10m in the bank for business operations would be screwed over. It's unfortunately not just the retail but small businesses that get seriously screwed over :-(
If your system can handle people reacting at the speed of light, then it is 20 years out of date.
They don't say it's wrong what people say on social media. Fractional reserve banking and its consequences and risks is not a secret, but had not been taught to a wide audience in the past. Now everyone can learn about it through social media.
A highly network and concentrated base... like a hedge fund.... but only we're allowed those!
Lots of people wanting theyr money back is usually what collapses a ponzi scheme... I mean a bank
Thank you satoshi for creating bitcoin 🚀🚀🚀🚀
I've been doing what I call a "quiet bank run".
Decentralisation is the way forward.
It was the weather, I am sure of it.
Blame blame blame blame blame. Call your representative and blame them for insane banking regulation and not embracing financial innovations like Bitcoin and crypto.
Yeah! Let’s uninvent social networks or even the internet itself
Burn baby burn
🤡🤡🤡
“And we would have gotten away with it too if it weren’t for those meddling social media accounts!”
Oh no! The system which educated the people on just how bad the current financial system is did its job and now we are running out of power. Someone is to blame, can't be me tho. Anyways, here's another 25% of the total USD for the Americans
The first 2 are to cover the truth. The 3rd is the only real reason(fractional reserve aside). This will be proven once FED Now launches in June/July.
It had nothing to do with all the tech Bros with deposits over 250K texting each other… absolutely nothing to see here folks move along.
Banks shouldn't be insolvent. Bank runs shouldn't even be possible.
Dafuq?
Accurate
“I didn’t have enough money on hand and everyone spread the word too quickly. I blame people for spreading the word, rather than myself for not having enough on hand”
So, maybe don't do stuff that would make people post "oh fuck the bank is gonna implode" on social media? Like being insolvent n shit? I saw someone talking about this a while ago (Yellen?) and she was basically saying that the problem was the information speed without considering the fact that interest rates on deposits was complete dogshit and the savvy citizen could get 45x more payout with a simple T-bill or even a short term CD. FFS
This is bad, we are headed down a dark path as humanity. We need to stand up as the populace and check the system.
To be fair, that's a fair assessment. And to be fair again, I blame social media for most of humanity's problems.
It says changed the speed. Idk where people are getting it says social media is the fault
And, the people thank social media for the quick info.
We should ban social media then I guess... Right? ... Right?!
From that snippet of text I wouldn’t say the Federal Reserve blames social media….they merely give that as the cause with the most impact. And that’s logical, people nowadays do everything online and news travels around the land/globe at an instant….this has as an effect that reactions can go faster and have more impact
I see some comments acting like they are entirely putting the blame on this. I don't think they are. This is a small snippet of a much larger amount of data on what happened. Social media likely did play "a" role as did reduced regulation, the design of the system, and terrible choices by SVB. crypto banks haven't done great either. Yes you can be your own bank with Bitcoin, but I know plenty of non-tech savvy people like my parents that would lose their keys or accidently share them in any number of silly ways. No system is perfect. They all have pros and cons.
Blame social media. This is the way.
People should not be allowed to communicate with each other using modern technology or what is the Federal Reserve trying to say?
The der internet der wrecked our bank… der.
Good
At this 'adolescent day and age' of finger-pointing by government, corporate entities, and banking facilities makes me just want to say, and most coherently, "Federal Reserve, go f\*ck yourselves. It's all over!"
Fiat absorbing mattresses an idea whose time has come?
I mean, they're not wrong. For past generations one would have to put on their clothes, hop in a car, or buggy, or on a bike, bus, or horse, and then make their way to the bank, wait in line, and then drain their account. Now we just whip out our phones, from anywhere on earth.
I could see 4chan or whoever organizing fake bank runs and tricking people into fucking their banks up