LATEST UPDATE:

2nd FDIC-Insured Bank in 3 Days COLLAPSES! Bank Runs, Trading Halted on Some Banks

UPDATE 1:

BREAKING: Silicon Valley Bank Run has Reportedly Started – Website Down

UPDATE 2:

Four biggest US Banks Lost $52 BILLION in Valuation Today as Dow drops 540 points

by Brian Shilhavy
Editor, Health Impact News

The collapse of the banking industry has started, with FDIC-insured Big Tech Silvergate Bank announcing yesterday they were liquidating their assets and closing down.

Silicon Valley Bank also announced yesterday that they have lost $10 billion, while trying to reassure depositors to just “stay calm,” suggesting that their collapse is also probably imminent.

I don’t think there has been a more significant news event in the financial sector since the financial crisis of 2008, and yet at the time of my publishing this article, none of the corporate media is treating this as a headline story, unless it is a publication that focuses only on financial news.

This is the beginning of the storm that should have happened last year after FTX blew up, and probably did, but the infection that I have been calling The Big Tech Crash that started in 2022 has only just now begun to reveal how serious this crisis is, which can no longer be hidden from the public as the bank failures have now begun.

Bank runs that began last year, are only going to significantly increase in the days and weeks ahead. And this infection is not confined to Big Tech and their banks, but is spreading fast to other sectors of the economy.

Silvergate Bank: Crypto Fraud Casualty

Image source.

It certainly is not surprising that Silvergate Bank was the first to go, as they were the bank most heavily invested in cryptocurrencies. They are the first U.S. FDIC insured bank to collapse since the COVID crisis in 2020.

The holding company for the California-based Silvergate Bank announced on Wednesday that it would begin the process of ending its operations and voluntarily liquidating the bank, ending a long descent for the crypto-focused firm and weeks of speculation about its viability.

With crypto’s rise and traditional banks’ hesitance to work with the volatile sector, Silvergate had established itself as one of the most important partners for the nascent industry, offering key financial services in exchange for soaring profits. By working with crypto’s top companies, from Coinbase to FTX, Silvergate’s share price rose more than 1,500% between November 2019 and November 2021.

The bank’s fortunes were tied to the industry, with 90% of its deposit base coming from crypto companies. As the bear market set in, Silvergate suffered severe outflows, including $8.1 billion in digital asset deposits in the fourth quarter of 2022 alone, exacerbated by the November collapse of one of its key clients, FTX. (Full article.)

As Bloomberg reports, Silvergate collapsed amid scrutiny from regulators and a criminal investigation by the Justice Department’s fraud unit into dealings with fallen crypto giants FTX and Alameda Research. Though no wrongdoing was asserted, Silvergate’s woes deepened as the bank sold off assets at a loss and shut its flagship payments network, which it called “the heart” of its group of services for crypto clients. (Full article.)

The same day that Silvergate announced it was liquidating its assets and closing, Silicon Valley Bank made a surprise announcement that it would sell billions of dollars in stock to shore up its balance sheet and liquidate nearly all the securities it had available to sell so it could reinvest the proceeds.

The bank has suffered big losses on U.S. treasuries and mortgage-backed securities at the same time as its tech-heavy customers were burning through their deposits, according to The Information.

Things only got worse today (March 9, 2023), when Silicon Valley Bank CEO Greg Becker told top venture capitalists in Silicon Valley to “stay calm” amid concerns around a capital crunch that wiped nearly $10 billion off the bank’s market valuation.

I don’t know who wrote Becker’s script for this announcement, but having a bank CEO tell depositors and investors to “stay calm” is probably the WORST thing he could have said. It will probably have about the same effect as telling a crowded theater where a fire has just started to “just stay calm” and don’t leave the theater.

Silicon Valley Bank CEO Greg Becker on Thursday told top venture capitalists in Silicon Valley to “stay calm” amid concerns around a capital crunch that wiped nearly $10 billion off the bank’s market valuation.

On a call, Becker said that “calls started coming and started panic.” He added that the bank has “ample liquidity to support our clients with one exception: If everyone is telling each other SVB is in trouble, that would be a challenge.”

“I would ask everyone to stay calm and to support us just like we supported you during the challenging times,” he said. (Source.)

Too late Mr. Becker. The cat is out of the bag: Silicon Valley Bank IS in trouble.

And so is the rest of the financial system, as this Big Tech infection is not confined to just technology, as the U.S. society has spent decades now integrating technology into just about every other sector of our lives.

One of those sectors is the housing industry, as Better.com, a technology-based provider of mortgages, is also on life support, having laid off about 90% of their employees.

As The Information reported yesterday:

Better.com is staring into the abyss. The SoftBank-backed mortgage lender is fighting to survive amid high interest rates that have crushed its core refinancing business.

In an interview with The Information, its founder and CEO—who went viral in late 2021 when he sacked 900 employees on a Zoom call—didn’t rule out further staff cuts, even though previous layoffs have already shrunk Better.com’s headcount to 1,200 from 11,000 in 2021.

In the interview, Vishal Garg also described a multitude of rabbits he’s seeking to pull out of his hat.

Better.com faces deep challenges. In 2020 and early 2021, its business exploded thanks to low interest rates that drew a surge of mortgage refinancings. But refinancing interest has dried up as interest rates have soared. After posting a $172 million profit in 2020, Better lost $304 million in 2021 and another $328 million in the first quarter of 2022, according to securities filings by Aurora Acquisition Corp., a special purpose acquisition company that in 2021 proposed a merger with Better.com.

Other hurdles have arisen: Aurora disclosed last summer that the Securities and Exchange Commission was probing Better.com and the SPAC “to determine if violations of the federal securities laws have occurred.” (Read the full article at The Information – Subscription needed.)

Another sector heavily invested in technology is “healthcare.”

In a report published at Fierce Biotech yesterday, Johnson & Johnson announced that they were beginning layoffs in their “medtech division.”

Only a few weeks after Johnson & Johnson was reported to be planning global layoffs amid a restructuring of the infectious disease and vaccine groups of its Janssen pharmaceutical division—and just as a separate wave of layoffs hit the company’s consumer health group ahead of a planned spinoff—the job cuts have now reached J&J’s medtech division.

The bulk of the cuts—comprising nearly 300 jobs—will come from J&J’s Auris Health subsidiary, which makes robotic surgery systems for endoscopy procedures and which was acquired in 2019 for $3.4 billion. Another 47 layoffs will come from Verb Surgical, the robotic surgery startup that began life as a joint venture between J&J and Alphabet’s Verily offshoot but moved solely under the J&J umbrella in 2020. (Full article.)

Layoffs in their “robotics” businesses? But I thought robots were progressing to the point that they will soon replace humans?

As I have been saying for over a year now, the technology is not evolving, it is crashing.

And that is no longer a prediction. It is happening right now, before our eyes, and yet most of the public is still asleep and clueless.

But that won’t last much longer, as the day is probably fast approaching when they will go to their ATM or bank and will be unable to access their funds.

Make no mistake about this: this is a planned take down of the financial system that has been in the works since at least the 4th quarter of 2019. COVID was the first phase, the Ukraine war was another phase launched in 2022, and now we are apparently entering into the next phase.

See Also:

Understand the Times We are Currently Living Through

American Christians Want a New Jewish King to Become Slaves Instead of Serving Jesus Christ in Freedom

Where is Your Citizenship Registered?

American Christians are Biblically Illiterate Not Understanding the Difference Between The Old Covenant vs. The New Covenant

Exposing the Christian Zionism Cult

Jesus Would be Labeled as “Antisemitic” Today Because He Attacked the Jews and Warned His Followers About Their Evil Ways

Insider Exposes Freemasonry as the World’s Oldest Secret Religion and the Luciferian Plans for The New World Order

Identifying the Luciferian Globalists Implementing the New World Order – Who are the “Jews”?

The Brain Myth: Your Intellect and Thoughts Originate in Your Heart, Not Your Brain

Fact Check: “Christianity” and the Christian Religion is NOT Found in the Bible – The Person Jesus Christ Is

Was the U.S. Constitution Written to Protect “We the People” or “We the Globalists”? Were the Founding Fathers Godly Men or Servants of Satan?