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Bank Go Bye Bye

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  • Opublikowany 12 mar 2023
  • Today, the Silicon Valley Bank went from “is” to “was” in the space of hours. What will be the impact on tech companies, startups, and everyday workers?
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  • Nauka i technikaNauka i technika

Komentarze • 782

  • Denied
    Denied 16 dni temu +1253

    it was so funny watching Linus go through the stages of annoyance with realising that he has to now talk to accounting about it.

      BAD IDEAS 6 dni temu +1

      "I'm now big enough it effects me directly!"

    • tjb_altf4
      tjb_altf4 9 dni temu +3

      he just realised he will have customers (companies) that owe him money that will be impacted by SVB going under, which will impact his cashflow.
      These kind of economic events can, and will take down companies further along the supply chain unfortunately.

    • pablojrl123
      pablojrl123 11 dni temu

      Pardon the stupid question, but why was what Linus said 15:45 a bad thing?

    • Ski Mask Flats
      Ski Mask Flats 11 dni temu +1

      @Freestyle people know what a ceo is they don’t know who’s appointed that position in every company.

    • Freestyle
      Freestyle 12 dni temu

      @Rohit Sonar people here still dont know what a CEO is…..

  • Tropicoboy
    Tropicoboy 15 dni temu +80

    Land banks are frustrating for the middle class who are struggling to get houses these days. Not to mension any ammount of land. Sitting down and learning business with Linus would be so interesting

    • Fx arts
      Fx arts 13 dni temu +2

      also frustrating since it's just not viable to use it if u are not rich since land or real estate for that matter just isn't liquid enough. if u need money now u might very well loose money. so u first of all need to spend a significant amount to get enough land that its worth it but also cant just get the money back.

  • Бармен
    Бармен 16 dni temu +951

    "Assuming we pay minimum wage, which we don't" - Mr. Tech Tips

    • that zombies player
      that zombies player 12 dni temu

      ​@Nela Kendra if how much you paid your employees was confidential than Linus wouldn't have said anything about the fact that they pay above minimum wage. I don't know the exact laws but I'm pretty sure Linus could just say on average we pay our employees $25 an hour or whatever the case may be and his employees could complain but legally speaking there's nothing they could do about the fact that he said that publicly again as far as I can tell.

    • that zombies player
      that zombies player 12 dni temu

      ​@JollyGiant19 I think he's just giving up trying cuz he's never going to win

    • Mike
      Mike 13 dni temu +1

      @Chase Hamilton Only an idiot would take that to mean LMG (illegally) pays anyone _less_ than minimum wage.

    • Bespoke Penguin
      Bespoke Penguin 14 dni temu +2

      Every week this man flies very close to the line of getting canceled then saves himself last minute

    • Rob James
      Rob James 15 dni temu +5

      just FYI In Canada it is Illegal to pay under minimum wage. Not even restaurant servers can be paid under minimum (like it seems they are in america). So yea Linus is paying probably much more than min wage

  • Grimsace
    Grimsace 16 dni temu +587

    FYI, the FDIC stepped in and provided the funds so that all of the deposits would be paid in full, with the funds available on Monday. The shareholders and owners of SVB are not included in this though and they will be paid out through the likely liquidation after other debts have been paid.

    • Richard Servello
      Richard Servello Dzień temu

      @Ghomer Hust Because they were billionaires. If the account holders were say, retirement accounts with more than $250k in them...they would be screwed.

    • Richard Servello
      Richard Servello Dzień temu

      Yup...the gov is FINE bailing out billionaires...when home owners were screwed nobody had a mortgage paid off or long term retirement paid back...but the banks got billions!

    • Operator 801
      Operator 801 3 dni temu

      ​@Roach Dogg JR Yeah, it's the libertarians, (who don't trust institutions) who are wrong here.
      Riiiiight. Bailing out a bank that's been investing like a slot-machine, is EXACTLY what tax money should be used for.

    • HappyQuails
      HappyQuails 9 dni temu

      @H Law Some of us are the past highest earners now retired

    • HappyQuails
      HappyQuails 9 dni temu

      Are you sure all accounts can be paid in full? Insolvent banks give out shares of their own stock through the FDIC’s protection but even they don’t keep all the money on hand to bail out all the insured banks. It’s more like they enact a do-over where people are issued the stocks and withdrawals are considered dividends

  • Liam Richard O'Neill
    Liam Richard O'Neill 15 dni temu +127

    Land banking has had negative effects here in New Zealand. In every city there are 'ghost houses' which are perfectly livable but remain vacant because the owners are speculators or land bankers and do not want tenants. Most arable land is used for agriculture, dairy farming or forestry here so the land bankers target the cities. Some small towns entire main streets are vacant because land bankers buy up the CBD and hike the shop rents so that they are unsustainable because they don't want to be landlords. It has its own set of social problems.

    • János Szabó
      János Szabó 4 dni temu

      Wanted to say pretty much the same thing. Wealthy people buying up land literally for no other reason just to cash dump, is a huge issue all around the world

    • Mike
      Mike 12 dni temu +2

      @Lalo Forcing people to rent out unused property is too politically charged for that to happen in the US.
      Raising property taxes on unused property is a less direct to modify behavior, with the benefit of leaving the owners with the choice of what to do with the property. If they choose to pay the extra taxes, those taxes can be used to mitigate the problems caused by unrented properties.

    • Liam Richard O'Neill
      Liam Richard O'Neill 12 dni temu

      @Lalo Non such law in New Zealand unfortunately.

    • Lalo
      Lalo 12 dni temu +1

      Forgive my ignorance, but what if there was a law that forced land owners to rent a property at market rate if they aren't planning on living there? At least that way, they can keep their land as an investment while someone else can afford a place to live.

    • Mike
      Mike 13 dni temu

      @Leon There would have to be some oversight and enforcement, but the cost of that would come out of the additional taxes they collected. For starters, you can check the utility bills to see if a property is in use, and if you find the same person living in 10 different places, that's a red flag too.

  • DelphiPascal
    DelphiPascal 15 dni temu +95

    This is why, if you have significant ones, you need evenly distribute your cash holdings between multiple banks. Not necessarily to insure it all but so that you can survive a few months.

    • Mike
      Mike 13 dni temu

      Not really necessary for the reason you state. The FDIC is required by law to pay out "as soon as possible" and typically returns the money within a few business days, and often the first day after the bank is shut down.
      Only if you're lucky enough to have bank deposits of over $250,000 do you need to worry about using multiple banks, and odds are if you're keeping that much sitting in a single bank account, you already have plenty of other cash lying around with which to pay your bills.

    • B20C0
      B20C0 15 dni temu +5

      There is a reason so many big companies get into real estate. And there is a reason it's called "real" estate.

  • ThePersianPopinjay
    ThePersianPopinjay 8 dni temu +3

    The lightly whispered "w-we we don't pay minimum wage" at 3:33 was so pure. Honestly love Luke so much

  • Agent Man #42
    Agent Man #42 15 dni temu +287

    Dang, at around the 19 minute mark Linus showed exactly why he is so much more respected than most rich people.

    • Fenris Waffles
      Fenris Waffles 8 dni temu

      @16vSciroccoboi I'm not repeating myself again and I'm sorry if you can't seem to understand the difference between the entity known as "person" and the entity known as "landlord" and how a person can be both and be affected by both.

    • 16vSciroccoboi
      16vSciroccoboi 9 dni temu

      @Fenris Waffles so, someone buys a home, pays it off, moves somewhere else, and decides rather than selling their property they will rent it out for less money than anyone could possibly buy it for at market value. They decide on willingly being responsible for all the maintenance and upkeep, as well as having to fix it if someone completely wrecks the place... the second they rent it out suddenly they are actually a terrible person, unless they fight the overwhelming urge to screw the tenant?

    • Fenris Waffles
      Fenris Waffles 9 dni temu

      @16vSciroccoboi Depending on your philosophy sure. But what I'm getting at is that a person can be decent, a landlord can be decent, but its in spite of their occupation as a landlord, and there are a lot of shitty landlords, and that's before you get in to property management companies.

    • 16vSciroccoboi
      16vSciroccoboi 9 dni temu

      @Fenris Waffles hahaha okay. Sure. Because ten different people can own a house? I get it. Owning property is evil.

    • Fenris Waffles
      Fenris Waffles 9 dni temu

      @16vSciroccoboi and for every landlord who has to deign to cleaning up a house there's at least 10 tenants who got screwed out of a home due to dumb leasing requirements, losing their job through means outside of their control, or because the landlord wanted to raise rent when taxes haven't gone up. These are simply not comparable levels of problem. Landlords are MUCH less likely at risk of losing their property than a renter is of losing their place to stay, and even if something like a fire burns the place down the Landlord is out property, the renter is out a place to live. This is ONCE AGAIN not comparable. Landlords can afford to deal with a lot more by pure circumstance of having more money. Renters do not have this privilege most of the time.

  • Noah Foushee
    Noah Foushee 16 dni temu +219

    And the craziest thing was, this wasn't the most suprising thing that happened this episode

    • Posum
      Posum 7 dni temu

      @Toxic WiFi ???

    • Noah Foushee
      Noah Foushee 15 dni temu

      @RapMastaC1 say... That Linus's misunderstanding was surprising and funny this episode. Idk I thought it was a funny comment

    • Toxic WiFi
      Toxic WiFi 15 dni temu +1

      @Everyone's favorite uncle of course funny enough they uploaded it themselves today :) it was hilarous so that’s good

    • Everyone's favorite uncle
      Everyone's favorite uncle 15 dni temu +1

      @Toxic WiFi cheers mate

  • Nadia
    Nadia 11 dni temu +5

    That happened to my parents. They had a part of their savings in a bank that went bust in the late 80s. It took them TWENTY-FIVE YEARS to get something back, and it was about 5%. Like I wasn't even been born when their money went poof. Some of the people in the queue had invested their life savings and got enough back to buy a second hand tv

  • hazonku
    hazonku 13 dni temu +3

    Seeing Linus' take on this is actually super interesting. Also I genuinely thought the part of the reasoning for the lab was to use it as a land bank. I'm genuinely shocked he's only recently learned about that.

  • Sketch's Skotch
    Sketch's Skotch 15 dni temu +39

    Did Linus just do the Lex Luthor speech from Superman Returns? "You can print money, manufacture diamonds and people are a dime a dozen, but they'll always need land. It's the one thing they're not making any more of."

  • Vader Was Here
    Vader Was Here 14 dni temu +5

    The SVB thing hits hard. My former company used SVB heavily for all of our US and foreign accounts. Our Director of Treasury finally started moving us off of SVB to Wells Fargo and HSBC mostly, because SVB didn't have enough enterprise features. Then we were acquired for $15+ billion and the money has been mostly moved out of SVB... looks like a great thing these days.

  • Bill Melater
    Bill Melater 16 dni temu +270

    Fun Fact: No one's bank has enough liquidity. That's how Fractional Reserve Banking works. You put your money in, they lend it out. Doesn't matter if you have over or under $250K.

    • Bill Melater
      Bill Melater 10 dni temu

      @clawwwie That's precisely the problem. Not to mention that the "insurance" is in fact you and I, and all other taxpayers. Welcome to the modern fiat Dollar.
      Sorry, I'm not sure where you're getting the idea where the economy isn't "structured" for a full reserve system to be viable. In fact, that "structure" has been at the heart of every boom and bust.
      There is no, "The Economy". There is only economics. Sure, if you want to keep an unstable system and ignore basic economics, then you need unstable banking for that particular bad system to continue being bad.

    • clawwwie
      clawwwie 10 dni temu

      Well duh, that's what insurance is for. I don't think anyone was under the impression that a bank kept assets on hand worth as much as they loan out. The economy is not structured for that to be viable

    • Luminescent Lion
      Luminescent Lion 15 dni temu +1

      FDIC insurance covers the first $250k no matter what, the American government has to go under to lose that. Beyond is covered by a solid "Maybe".

    • Joker Hank Hill
      Joker Hank Hill 15 dni temu +1

      Fun fact: there is not enough money printed for the banks to give back, if you take all the money on the world it doent match the banks records.

    • The Glow Cloud
      The Glow Cloud 15 dni temu +1

      @Mario You're assuming the FDIC will always be there to guarantee deposits, especially in the case of cascading bank failures. I doubt that.

  • tjs114
    tjs114 14 dni temu +5

    A lot of companies in the SF Bay Area used SVB as their payroll bank because it was the preferred Bank used by several of the payroll processing companies.

  • Kyouya
    Kyouya 16 dni temu +443

    Linus is slightly misinformed on how it does not affect Canada. SVB has a branch in Toronto

    • no body
      no body 12 dni temu


    • that zombies player
      that zombies player 13 dni temu

      ​@JollyOldCanuck and that's not what anyone else in this comments section is talking about so it is irrelevant

    • Derrick Napier
      Derrick Napier 15 dni temu +1

      some of the "outside" branches are getting purchased by other FIs already. HSBC already purchased the UK branch on Monday to prevent the failure.

    • Sender Snivy
      Sender Snivy 15 dni temu

      @Sir Sneaky Beaky Christ not AGAIN

    • Thomas A
      Thomas A 15 dni temu

      @emeraldbonsai congratulations “a few big cities” is how most countries work

  • Ahdok
    Ahdok 16 dni temu +136

    By the time this clip went live, the situation had changed enough that all of the actual information in it was out of date and not relevant :D
    Current events be crazy.

    • Jürgen Erhard
      Jürgen Erhard 15 dni temu +7

      "not relevant" So SVB suddenly didn't go belly up? If not, then this is still relevant.

    • H Law
      H Law 15 dni temu +7

      Yeah, things got much, much worse.

  • Michael Guzman
    Michael Guzman 15 dni temu +54

    You know it’s a bad day when you go “fuck I have to talk to accounting!” 😂😂😂

  • CC Hogan
    CC Hogan 15 dni temu +17

    In the UK, The gov and the Bank of England, stepped in over the weekend with HSBC. HSBC has bought the UK arm of SVB for a symbolic £1. That means UK users of the bank are fine. But they all had a terrible weekend before that was announced on Monday.

  • TheCheshireChance
    TheCheshireChance 7 dni temu +1

    SVB bank going down directly effected me. I work for a tech company that acquires failing retail business, and converts them to digital markets.
    SVB effected all of the brands under our umbrella.

  • Dennis Anthonipillai
    Dennis Anthonipillai 15 dni temu +15

    Luckily this year regulators said Canadian banks need more cash on hand. (That’s why they were offering good GICs)

  • Jan
    Jan 15 dni temu +4

    When the boss doesn't know what minimum Wage at his place of Business is, you know he is a good boss!

  • ClundXIII
    ClundXIII 15 dni temu +4

    I would argue you are in the best position ever since you just spend a ton of money and essentially minimized the potential loss through this very well.

  • jodysin7
    jodysin7 8 dni temu +2

    I know people dont read books anymore but this is why everyone should read "creature from jekyll island"
    Its about the pyramid sceme aka fractional reserve banking, the fdic and modern lending. Its a insanely informative book and will also explain where to put you money to keep it safe from insolvency.

  • Draigon
    Draigon 15 dni temu +3

    It’s crazy though that some big clients actually got ALL their funds out before

  • Swarly
    Swarly 15 dni temu +1

    I hope they do a follow up next wan show, it's pretty interesting

  • Robert Pirlot
    Robert Pirlot 15 dni temu +11

    So in America we have Bank Protection Agency that take hold of the Bank and Try to put things inline before it goes Bankrupt. So Most likely the Bank was already dealing with the Bank Protection Agency before anyone knows about it.

  • Kyoyeou
    Kyoyeou 15 dni temu +7

    21:09 "Imagine I bank at HSBC"and that's when you know he's not imagining it in Europe 🤣

  • John Morris
    John Morris 13 dni temu +2

    I'm sat laughing at Linus when he says he doesn't pay minimum wage, it sounds like he pays below😂

  • Fenris Waffles
    Fenris Waffles 10 dni temu +2

    The thing with SVB isn't even surprising. What's the amount of money that banks are required to hold on reserve in ratio to their total assets/deposits held? I remember it dropped to obscenely small amounts in either 2020 or 2021.

  • Daniel Revas
    Daniel Revas 15 dni temu +4

    My wife's company, which is a billion dollar company not a "startup", had a significant amount of money in this bank. While they were relieved that they were given access to all of their funds, they had the liquidity and the profits to be ok. Not everyone would have been so lucky.
    Talking about "land banking?" Bill Gates is now the largest private land owner in the US.

  • liminos
    liminos 15 dni temu +7

    In germany (or maybe europe entirely?) the ensured liquid value per Customer per Bank is 100k€ by law. That said, it only applies to the LIQUID value. Which you should not stack so high anyways (relative to your personal/business value) so.. it's absolutely fine imho.

  • TotemoGaijin
    TotemoGaijin 15 dni temu +3

    Whether you're a business or an individual, the old saying still stands. "Don't put all your eggs in one basket."

  • WoollyOne
    WoollyOne 16 dni temu +159

    Here we go, let’s see if they’re brave enough to upload the clip we all want to see 😈

    • ZesPak
      ZesPak 8 dni temu

      @Lalo it took me a while to catch what you guys are talking about, "delay" in French is "retard".
      It litteraly means "slow" in French, as someone who often speaks French it's odd that the same word should be banned... Now I know what the Spanish community went through when they weren't allowed to say "black" anymore in Spanish :D

    • Lalo
      Lalo 12 dni temu

      ​@Ben Rider As an F1 fan, I completely glossed over the negative connotation of it because in racing "retardation" is an actual technical term to describe the braking system of a car, with the announcers clearly saying it and no one blinks an eye. Outside of a Rick and Morty episode, I haven't really heard it said to describe someone

    • The not-so-fake News
      The not-so-fake News 15 dni temu +2

      ​​@Tennick Salvarezinus got confused about the "hard R word" and the other word which means mentally disabled and begins with "R". He was trying to say back in 2002 he said the "R" word a few times and would now never say it. But instead said he dropped the N word a few times. Before Luke asked for clarification about what word he was talking about.
      Moist critical has a reaction video up about it, it's really funny.

    • jaxon hill
      jaxon hill 15 dni temu +1

      @JEEHOONOH lol

  • blaster915
    blaster915 13 dni temu +1

    Damn, with this burst, it's gonna have a HUGE knock-on effect for tech development. We experienced the leap of VR/AR this last decade. After this, we are gonna have to wait another decade at min before we have enough support for another big leap in tech in the west.

  • Shane Letchford
    Shane Letchford 16 dni temu +12

    I could watch Linus present literally anything

  • The Glow Cloud
    The Glow Cloud 15 dni temu +2

    This won't be the only bank to fail in the coming years. Buckle up, bois!

    YTDTV 15 dni temu +3

    "I have to talk to accounting." Translation my wife is going to yell at me for an hour for revealing company finances... Again

  • weakamna
    weakamna 15 dni temu +1

    So if the unit you were looking at is using that as a land bank, what's stopping you from renting it? Cost I'd guess?

  • Eric Epperson
    Eric Epperson 15 dni temu +5

    The FDIC uses insurance premiums paid by all its member banks and funds from selling the insolvent bank's loans to other banks, to cover the funds. Most banks have much more out in loans than deposits. The FDIC has announced they they will be able to cover all insured deposits for SVB customers without using taxpayer revenues.

  • BatBreakr
    BatBreakr 15 dni temu +2

    Uh... my dude just saved his bro from a Ye moment. Luke deserves a special parking space yo!

  • tsnorquist
    tsnorquist 16 dni temu +45

    I saw it reported that Roku had a single checking account at this bank to the value of about $487m dollars lol. That sounds smart.

    • tjs114
      tjs114 14 dni temu

      I haven't seen anything clarifying it, but this could be the account that they use for payroll - a lot of the payroll companies in the SF Bay Area try to get customers to use SVB, or it could be their facilities expense account, so like rent and utilities. It could even be their insurance fund for paying medical insurance benefits depending on how the company operates. I know our payroll checking is with one bank while facilities and utilities are at another, and our development expense account is someplace different than the operations department expenses.

    • Music
      Music 15 dni temu

      @Nate 08 Government Back Securites, Commercial Paper, CD's. There are a ton of short-term securities that corporations invest in to actually make money on their cash positions.

    • Leon
      Leon 15 dni temu +2

      @squidwardo just buy more mattress, you have plenty of money

    • Nova
      Nova 15 dni temu +2

      @Nate 08 no one is asking to put it into 250k chunks but why the fuck would you put all your eggs in 1 basket?

    • Chases May
      Chases May 15 dni temu

      @squidwardo idk, where there’s a will there’s a way:)

  • Jake Sinclair
    Jake Sinclair 15 dni temu +1

    I met someone today who works in a company that banks with SVB UK so it is quite a big economic situation.

  • Ciliwyn
    Ciliwyn 12 dni temu

    I’ve not seen anywhere else mention this, but the arm of SVB in the UK was sold to HSBC for £1 (1.22$ USD) after all night of talks a day or so after the collapse, to keep the tech startups in the UK safe!

  • metaleggman18
    metaleggman18 15 dni temu +5

    Ownership type is a weird one, because they're not talking about, say, checking, savings, money market, etc. What they're talking about are their own ownership categories, which includes single accounts, joint accounts, revocable trusts, etc. So, what this means is that if you're a married couple with, say, a million dollars in cash (hopefully you have other money invested, otherwise that's really irresponsible at that level). You could have, at one bank, a Linus owned account insured up to $250K (it could be checking, savings, or if you have both, they combine them in total value), you could have an Yvonne owned account insured up to $250K (same), but you can also have a joint account owned by both Linus and Yvonne, insured up to $500K because the insurance stacks between the both of you. So within one bank, you can easily deposit a million dollars as a married couple with combined finances and stay insured. It gets better because if, say, Linus and Yvonne had $250K for each of their four kids, they could setup trusts at the bank for each of their kids, let's say revocable trusts or something, meaning that they could be insured for up to $2 million dollars. They could even just setup savings accounts for their four children, and those could be insured for $250K, meaning at a single bank Linus and Yvonne could have an insured amount up to $3 million with enough finessing. My father recently reorganized his cash in the midst of this because his bank was considered vulnerable, now everything is FDIC insured, and it's more than $250K. Even better, there are banks with services where they spread those $250K or $500K (for joint accounts) amongst several banks, but where the initial bank controls it. This is one of the ways that people with many millions in cash store that liquid asset (while people claim rich people have no cash, this isn't true, they may have anywhere from a million to tens of millions in cash, depending on their lifestyle and liquidity needs, especially in terms of paying for taxes).
    Granted I used Linus and Yvonne, and they're not banking with US banks (though if they were banking with a US bank for some reason, they would be covered by FDIC; it's an aspect of the bank, not the citizenship of the depositor), but this is really important information. In fact, it's information that if more people understood this, and I mean upper class individuals with more than $250K in cash, not businesses, then the runs on the bank could be mitigated to some degree. Business and investment clients are going to be the primary cause in some cases, but seeing people lining up at ATMs and outside banks to pull out cash will add up and cause liquidity issues in the long run. Generally businesses aren't going to a bank to setup a transfer of funds, they call their agent or an agent.

    • metaleggman18
      metaleggman18 15 dni temu +1

      @Niko Nah I'm cool

    • Niko
      Niko 15 dni temu +1

      If you are going to write novels, learn how to format them.
      Your block of text just makes our eyes bleed and skim by your voice. Learn to be concise, or just don't bother.

  • Shlok Bhakta
    Shlok Bhakta 16 dni temu +1

    vercel gained my respect after this lol, definitely gonna use their platform to host a website now

  • Alistair Greyblood
    Alistair Greyblood 12 dni temu

    I work for one of the larger banks in the US, and my brother works in tech for Microsoft. He and I are both worried suicides are going to spike right now due to SVB failing and some businesses losing everything and some people losing everything. A bank failing destroys lives.

  • Anouyz
    Anouyz 15 dni temu +2

    Canadian banking is essentially one company look into the intertwined network of stock ownership behind the main Canadian banks

  • M T
    M T 16 dni temu +7

    This is such an important topic. My guess is everyone will have to deal with this soon...

  • Conversations Living Room with RJ RJ

    the FDIC took over the bank and has made a new bank ran by FDIC in hopes that they can sell it to another stable bank. BUT the funds in deposit accounts were being made available to the former SVB bank.

  • Rayzajw
    Rayzajw 15 dni temu

    This is all time funny 🤣🤣🤣 Dan chiming in made me laugh 😂😂😂

  • TiagoTiago
    TiagoTiago 15 dni temu +2

    Linus' lawyers must've been sweating waterfalls watching this...

  • Charge Beam Gaming
    Charge Beam Gaming 15 dni temu

    2023 is the year of Linus having financial realizations on air.

  • Ocastiâ
    Ocastiâ 15 dni temu +2

    I like that Linus makes it abundantly clear that LMG doesn't even pay minimum wage.
    I guess that explains why the employees steal so much stuff. /S

  • Jeremiah Hoyet
    Jeremiah Hoyet 15 dni temu +3

    Linus, near the end of this clip you said something about the government being at fault.
    As you stated, SVB was 16th in size in the United States. You'll find that we're very similar down here, as SVB wasn't on anyone's radar in the US until last Friday.
    Fun fact, SVB is a bank small enough to have gotten deregulation from the Trump administration. So, you are right! 😂

  • Sapioit
    Sapioit 15 dni temu +5

    I think the safest way would be to spread your funds among multiple banks. 4 banks, you said? That's 3 banks more than he amount of banks you have your money in.

  • Scott Olson
    Scott Olson 14 dni temu +1

    Something Linus forgot to mention, setting up corporate business account that is international is a gigantic pain in the ass. Especially international ones. Which very few banks can even operate. They would also demand records, which SVB is not likely to give you.

  • jdmJ03+
    jdmJ03+ 15 dni temu +1

    Would that payroll software startup happen to also be the one that was hacked about two years ago?

  • Zen Hakuden
    Zen Hakuden 15 dni temu +5

    "We do not pay minimum wage" Sounds like a spicy out of context clip to me lmao

  • MiniGoat7
    MiniGoat7 15 dni temu +3

    "You just buy land, because cash" - Linus

  • rmatt53
    rmatt53 12 dni temu

    That explains why I've seen so much interest in precious metals. Housing markets collapsing and regulations affecting markets. I've seen some holdings in stuff like PTLM and stuff that make me nervous. When money moves something is going to happen.

  • Jón Frímann
    Jón Frímann 16 dni temu +5

    This is not over. I hope you guys got backup plans.

  • Jose John
    Jose John 15 dni temu +1

    Some dude I know just bought a piece of land to park some money back in the day and like 20 years later Dollar General came to him with an offer to buy it, because it was in a semi rural area right off the highway and paid him 2.3$ million dollars for it. It wasn't a ton of land either. Maybe an acre or two. Land always appreciates in value. They aren't making any more of it and if your area is growing and becoming more prosperous then that can raise the property value a lot. My mother bought her house back in like 2015 for 80k and now in 2023 it's worth 180k. More than doubled in value in just 8 years.

    • PilsPlease
      PilsPlease 14 dni temu

      Land prices dropped where I live between the 70's and today so most people here took a bath and lost money. Houses have gone up by land drops every year.

  • Emperor Marcus Aurelius Antoninus Augustus

    Depositors are guaranteed full protection by the treasury and the FDIC in this instance, they announced it I think yesterday. Shareholders, not so much.

    REDEX 13 dni temu +1

    Credit Suisse, the second largest bank in Switzerland, is currently facing the same issue. They even had to borrow money from the Swiss bank to make sure investors don't pull out like they did with SVB. I don't know what's happening, but it's not looking good for the economy

  • Long Peter
    Long Peter 16 dni temu +9

    20:57 Linus missing the beep 😂

  • ohio kansas
    ohio kansas 15 dni temu

    I think it be cool if he looked at all the tech in a yacht!

  • thephantom1492
    thephantom1492 15 dni temu +2

    At work, I see some invoices passing by, and some "checks" comming in. One of the invoice was about 350k$, and those invoices come in every about 6-7 weeks! And 150k$ deposit is weekly.
    250k$ for a business is really not much at all.

  • Kevin Batts
    Kevin Batts 16 dni temu

    Even with all this I’m still 100% against bail outs.

  • DarthJarJar10
    DarthJarJar10 13 dni temu

    The points around the low returns offered by various assets classes are valid. It's a consequence of this prolonged, low interest rate environment which persisted, somewhat nonsensically, after the GFC. There will pain until a new steady state is achieved. And things such as banks with poorly managed balance sheets and a gross lack of proper risk management will fall.

  • Rogue Cthulhu
    Rogue Cthulhu 16 dni temu +2

    saw a notice recently from Etsy that payments to creators are going to be delayed due to the SVB closure.

  • Joshua Lee
    Joshua Lee 16 dni temu +12

    Fuck no wonder land prices suddenly shot up the last couple weeks in my area.

  • ZipZipZap
    ZipZipZap 15 dni temu +11

    Good news on the SVB line: the FDIC as stepped up and stated that they will garuntee 100% of the funds from customers of SVB, the investors in SVB are SOL but the companies with money stored in the bank will get that money back out of the FDIC pool even over the $250k limit

    • brilobox2
      brilobox2 14 dni temu

      @sunny sorry to hit you with a reality check, but thousands displaced in Ohio is nothing compared to millions losing their jobs because of a cascading financial crisis. Imagine if the previous admin hadn't repealed the regulations that prevented the derailment and the current govt had legal recourse to go after them for it, or if it just hadn't happened at all. Same story with SVB.

    • sunny
      sunny 15 dni temu +2

      that must make everyone who got kicked out of their homes by silicon Valley workers, or the thousands displaced in Ohio cuz our govt is more concerned about their crony donaters

  • Deke T
    Deke T 16 dni temu +27

    I read today that HSBC has bought the UK arm of SVB for just £1.

    • Orchomenos
      Orchomenos 15 dni temu +1

      @JollyOldCanuck so did Germany with the German branch, although they don't have any assets as the only business they did over here was giving out credits.

    • PrograError
      PrograError 15 dni temu

      @Robert Lee well... HSBC is pretty solid ain't it?

    • Robert Lee
      Robert Lee 16 dni temu +9

      Paid one pound but assumed all the debt and liabilities

    • JollyOldCanuck
      JollyOldCanuck 16 dni temu +12

      The Government of Canada also seized the assets of SVB’s Canadian branch.

  • bsquared
    bsquared 11 dni temu

    We need an "I'm on a boat" music video from the LMG crew 😂

  • Aaron
    Aaron 15 dni temu

    Well, if I didn't doubt my odds of getting a house before, I sure do now.

  • Douglas Sassaman
    Douglas Sassaman 15 dni temu

    It’s so refreshing to hear Linus swear lol

  • Marek
    Marek 13 dni temu +2

    That's why many countries in EU won't sell you land without warranty from buyer that they will build a fully functional house / warehouse / etc. within some period of time, otherwise you will pay a huge fine. So land banks here must go above just buying a land

  • Mike Marazzo
    Mike Marazzo 10 dni temu

    Another important thing to note is companies out of that bank that were paying operating expenses and payroll on lines of credit..

  • ryan mundell
    ryan mundell 16 dni temu +4

    Luke just wants a good gaming PC.

  • Rémy Savary
    Rémy Savary 15 dni temu +1

    (Canada) My understanding about credit union and their protection, it's not that they have no limit on how much is insured so its better for you, it's that there is no ceiling OR floor. If the credit union defaults, you might get back a lot more than what the CDIC insures with banks (100k per person per bank per type of account) OR you might get much less, you'll get what they CAN give you back since there is no federal regulation

  • Richard Servello
    Richard Servello Dzień temu

    Wasn't a withdrawal limit put into place to stop bank runs from happening???

  • synthiandrakon
    synthiandrakon 8 dni temu

    The moment Linus realised that the money they pays for his sponsor spots is probably in svb

  • Kiseki Enthusiast - John Bird

    all bank accounts in canada are insured up to at least 100k some credit unions are 250k so yeah if this happened here (very unlikely many harder rules to prevent this stuff) yeah he would be so done since you would like 10 to 20 accounts to even exist.

  • Dj Mccullough
    Dj Mccullough 16 dni temu +8

    WHoever named this video, You made me laugh out loud, Well played... well played.

  • VON_WA
    VON_WA 15 dni temu +1

    14:46 "SVB experienced a bank run, they're like gone essentially " "oohh...."

  • Electrics Nut
    Electrics Nut 15 dni temu +2

    People should be so scared of mandated government digital currencies that are coming. This is what we’re facing

  • Govindsing Patil
    Govindsing Patil 6 dni temu

    Linus: "How many people work here? does anyone knows what minimum wage is here?"
    his friend : "we....we......we dont pay people"

  • Alex barwell
    Alex barwell 16 dni temu +7

    Well Signature Bank also went bye bye yesterday

  • The Canadian Pulse
    The Canadian Pulse 15 dni temu +3

    We don’t have only four banks in Canada. We have the Big 6 national plus regional banks, digital banks, credit unions, and approved foreign branches…that being said, this implosion is a mighty deal. Hopefully the aftermath all gets sorted out. Deeply concerned

  • Killav
    Killav 14 dni temu

    A 'bank run' is what Cosmo talked about in Sneakers.

  • Tristan Jung
    Tristan Jung 13 dni temu

    Lol, just googled it, didn't know that there were like 2 Germans for every Canadian. Thought you guys were way more.

  • Ask3lad
    Ask3lad 16 dni temu +8

    Let’s go LMG clip time!

    • MJC
      MJC 16 dni temu

      Yo didn't expect to see you here

  • Dustin Murphy
    Dustin Murphy 15 dni temu +1

    I mean, If I owned a company and the bank just died and all the companies money was gone I would probably just run faster than my employees 🤷.

  • Fabio Mora
    Fabio Mora 15 dni temu +2

    Linus be like: no but we are ok because we have money coming in constantly, not like the people who give us money that probably... are... affected by this.......... oh f*ck if they don't have money we don't... I have to talk to accounting.

  • Theo Hallenius
    Theo Hallenius 14 dni temu

    "So let's assume we pay minimum wage, which we don't" That sounds terrible out of context 🤣

  • naidanac1
    naidanac1 16 dni temu +2

    All of this is ammunition to start LTT bank, in Surrey B.C. Slightly more seriously, all banks operate on trust, and LTT is trust farming. I don't know if Linus knows what he's got

    • 1blackice1
      1blackice1 15 dni temu +3

      It wasn't uncommon some time ago for growing companies to start their own local credit unions. General Electric used to be the largest employer in my hometown, had their own credit union that half the town banked with.
      GE eventually left town because outsourcing, and they got caught polluting the ground water with PCBs. Basically the same thing that happened all over the mid west.

  • Lightninbolt986
    Lightninbolt986 15 dni temu

    SVB was like the starting to a domino which has now brought down New York Signaure bank and Silvergate as well

  • Fecal transplant
    Fecal transplant 15 dni temu

    it did happen because of the government because they changed bond return rates and svb had a lot into bonds.

  • El-see
    El-see 16 dni temu

    You buy land because cash... Thats Linus traveling to filantropic territory right here lulz