Debt Cycle, Job Market, See you in Brooklyn soon!
Greetings, my esteemed readers. This issue encounter some minor delayed. With the US banking climate changing quickly. I have decides to rewrite the newsletter to keep it up-to-date.!
SVB Bank Run
The bank run of Silicon Valley Bank (SVB) would not have the same systemic impact as the collapse of Lehman Brothers in 2008.
What is a bank run?
A bank run occurs when customers lose faith in a bank's ability to repay their deposits and rush to withdraw their funds. This could trigger a liquidity crisis for the bank, leading to forced liquidation of assets, significant losses, and potential bankruptcy.
Compared to the collapse of Lehman Brothers, a bank run at SVB would have a less severe systemic impact on the entire financial system. Lehman Brothers was a massive investment bank with significant exposure to the subprime mortgage market, leading to massive losses and a liquidity crisis. Its collapse triggered a global financial crisis, causing a freeze in the credit markets, widespread panic, and a severe recession.
However, the potential domino effect of the bank run at SVB could be significant. We might see a credit crunch in the tech industry and potential instability in the broader banking sector and the US economy. Additionally, it could lead to a negative impact on consumer confidence in the banking system and further layoffs in the tech industry due to reduced funding.
If you are interested in the accounting side of how SVB’s bank run unfold, here Rich has a great summary and spreadsheet.
Best Job of 2023
Indeed.com has publish the best jobs of 2023, regarding freedom, salary, and flexibility.
My words of advice, be very good at what you do. By that I mean you should be able to take your skillset and apply it across multiple industries and/or scenario. Be open minded and know the reality and be brutally honest with yourself.
News!
Empirical is moving their production site to Brooklyn, NY. The current production site in Copenhagen will be closed at the end of June. — Empirical
That’s it for this issue. Feel free to let me know what you think or want to see more in the newsletter!