Although I used to be against bailouts now I temper that believe in what I hope is common sense. Now I believe bailouts are a good think. The bailout of the bank will help many small startups., where Silicon Valley is the corner stone of tech innovation. Better to help than to hinder. I also liked the New York City bailout. These lynchpin entities are to be to big to ignore. People make mistakes. I have a backup bailout in my bank to a smaller degree.. I’m pro small startups. Let’s hello them out
For the most part, the SVB problems are the result of investing excess deposits in government bonds which have been falling in value as interest rates rise.
Regrets on moving may be the result of rushing into something without enough research and living in the past. Missing something is allowing your focus to remain in the past which is long dead and gone.
Bill, great newsletter today. It made me think of other leaders’ talks in crisis - Winston Churchill, FDR. Leaders must rise to the occasion, rally people as to a possible fight ahead, and say we will get through it.
And we must remember the generations of Americans who “met the moment” in the Cuvil War, WW1 and 2. The Great Depression, the American Revolution. No doubt we’ll also face moments when our hearts tremble. But when we rally in unity the nation is incredibly strong. Hopefully we continue to do this.
I hope they don't think I have more money than you Bill. Everyone knows you're one of those Elon Musk entrepreneur types. Maybe I'll just search the article online. Great newsletter today. :)
Carter certainly wasn't a Roosevelt. People want a Teddy to lead them up the hill or an FDR saying, "The only thing we have to fear is fear itself." Late yesterday they finally took the bull by the horns.
The CEO sold his shares just a few weeks ago which, according to the SEC or Secret Service (I can't remember which), any executive member of a financial institution is not allowed to sell off their shares. There is a threshold that they must adhere to in order to prevent depositors from seeing it as trouble and cause a run on their bank.
Many people on staff received bonuses just a few weeks ago, when those in charge knew the shut down was looming. So it seems they protected their own before their customers. which leads me to the next comment.
This bank was FDIC insured. Doesn't that cover the depositors' money so the taxpayers don't have to bail them out?
Finally, we have a President who constantly tell us the economy is ok, the border is ok, homelessness is ok, everything is ok. Talk about a crisis of confidence. His numbers are in the toilet but his handlers have opted to keep him in the dark.
Just one point. FDIC covers deposits UP TO $250k. After that something (or someone/s) else have to kick in or the funds above that are, well, very much at risk.
I am appalled and worried that some gift bags at the Oscar Awards ceremony were valued at $126K. Does that mean the others were only in the 10s of thousands? WHY? There are horrendous problems in LA with homeless in the streets, gangs controlling significant parts of the city, yet these self-absorbed rich oligarchs thumb their noses at reality. Reminds me of the movie Hunger Games. Maybe the movie will mirror reality - revolution.
Something about the Oscars -- maybe it's all the ostentatious glitter and glitz -- always reminds me of the Hunger Games. I love the Academy Awards and enjoy speculating about them and watching them every year, but I feel this sort of sinister undercurrent. A "pay no attention to the man behind the curtain" kind of vibe. Or maybe I just watch too many movies.
Thank you for today's article. President Carter was a true full man. I wish we could change where the center of government is, it seems that once the people we elect go the, they lose their ethics and promises made to the people who elected them. Maybe it's the water, the air or the wealth they seem to accumulate. We really need term limits and also not let the let any members of their profit from their decisions.
Hi Bill. As far as the SVB and another bank that found it was standing on wobbly legs, I’m going to recommend that you and anyone else interested in being “in the room where it happened”, go to Representative Jeff Jackson’s Substack page and read about what exactly went on in the House when all this was going down. I believe y’all will be surprised. I might add that Rep Jackson represents the new 13th NC district that was created after the 2020 census came out. He is getting quite a following, not only from his district, but outside it, outside the state and every once in a while, even beyond our borders. The House had a 15 minute notice Zoom call about this so read for yourselves. It surprised me.
George Bailey didn’t have to worry about Zelle, Venmo and a generation of people who can move their financial assets in less time than it takes ne to type this message by using an app on their Apple iPhone
Re: Moving regrets. Last year you mentioned a friend interviewing couples about moves for an AARP article he was writing. We chatted, and our story was included in his piece. We absolutely loved the home we built in the late ‘90’s near Madison WI. Our decision to sell it and buy an older lake house in northern WI and a bayside bungalow near Panama City made us snowbirds. We will always treasure the memories of our Madison home in the country. We sold it to the parents of the young couple next door. We had the joy of building on family land and got to live next to my parents until their passing, and thought it poetic that we could help two family generations (three, with their newborn) have the opportunity for a similar treasure. Regrets are a burden shed by finding the gifts and opportunities in the decisions we’ve made, instead of living in the past.
We were one of 8 couples interviewed about their relocation stories. Our story didn't quite fit the overall theme of "which did they choose, this or that? See if you can guess!" This version is a bit closer to our story than the full article was. In brief, we first thought of moving from the country home outside Madison WI we'd built (ourselves) in the late '90's and took a weeklong trip to eastern TN and western NC to check out places near mountains and water. Nothing resonated, and on our way home we realized we didn't want to give up our WI roots. My wife said "well, let's be snowbirds." In August of 2021 we bought a little bungalow on the bay outside Panama City (sight unseen, though we did get a video walkthrough from the realtor) and were there from Dec to late March. Though we loved our country home and never imagined leaving it, we decided we'd always have wonderful memories and could make room for new ones. The northwoods of WI have a special place in our hearts, from years of enjoying a family cabin before it was sold. We decided that we could afford to get a lake home in the tall pines if we sold our country home. The perfect place found us in the fall of 2021, though in that very popular Minocqua, WI area the realtor advised us that we'd have to bid $50k to $100k over, pay cash, and waive inspection. The lake home was only for sale because the husband, a home remodeler, had a terminal illness. He had completed most of the remodeling of what was to be their dream home, but was in home hospice at the time it was listed. The house had just come on the market, and my wife was the first person to see it. Usually sellers are not at home during a sale, but the husband was still resting after a meal. The couple fell in love with her, because she shared our northern WI history and how we'd built our own home. We later learned there were higher offers contingent on financing, but they needed the cash. My wife was confident I would enjoy completing the needed work on the house, and she was right. We delayed our journey to FL until Dec, so that I could get internet set up for a security system and winterize the place. When we returned to WI in the spring of '22, we started moving things to the new place. Rewind to the previous fall, when we told the young couple who'd bought the house next door to our Madison area home that we were going to be moving, the wife asked if her parents could see the house, since she'd love it if they could live next door. We never had to list it. Her parents loved our place, and we gave them a super deal. It was poetic, since the reason we were able to build our own home in the country was because it was on family land next door to my parents. We got to have many wonderful years next door to my parents before they passed, both at home until the very end. It felt right to be able to offer this experience to our young neighbors. We closed on selling that home in late August last year. So that's the story (much of it, anyway). Thanks again for putting me in touch with the writer!
“I know I'm connecting some unusual dots here” - you write this almost apologetically, but it’s why I read your newsletter.
Sorry! :) Must be my Canadian half!
Although I used to be against bailouts now I temper that believe in what I hope is common sense. Now I believe bailouts are a good think. The bailout of the bank will help many small startups., where Silicon Valley is the corner stone of tech innovation. Better to help than to hinder. I also liked the New York City bailout. These lynchpin entities are to be to big to ignore. People make mistakes. I have a backup bailout in my bank to a smaller degree.. I’m pro small startups. Let’s hello them out
For the most part, the SVB problems are the result of investing excess deposits in government bonds which have been falling in value as interest rates rise.
Regrets on moving may be the result of rushing into something without enough research and living in the past. Missing something is allowing your focus to remain in the past which is long dead and gone.
Bill, great newsletter today. It made me think of other leaders’ talks in crisis - Winston Churchill, FDR. Leaders must rise to the occasion, rally people as to a possible fight ahead, and say we will get through it.
And we must remember the generations of Americans who “met the moment” in the Cuvil War, WW1 and 2. The Great Depression, the American Revolution. No doubt we’ll also face moments when our hearts tremble. But when we rally in unity the nation is incredibly strong. Hopefully we continue to do this.
I tried to access the SF Chronicle article and was greeted by a pay wall. Oh well, can't win 'em all.
Some paywalls are geared toward the individual visitor — I might not get one but you do, etc. I guess they think you're a bigger fish! :)
I hope they don't think I have more money than you Bill. Everyone knows you're one of those Elon Musk entrepreneur types. Maybe I'll just search the article online. Great newsletter today. :)
According to Gallup, followers need from their leaders:
Trust
Compassion
Stability
Hope
The MAGAs and the Dems don't seem to hear the message. How sad. The 60-70% of tyhe country are getting pretty tired of both sides.
Carter certainly wasn't a Roosevelt. People want a Teddy to lead them up the hill or an FDR saying, "The only thing we have to fear is fear itself." Late yesterday they finally took the bull by the horns.
The best of the best, in any field, are masters of connecting the dots. They join what others can’t…or what others won’t.
A few comments on this bank thing:
The CEO sold his shares just a few weeks ago which, according to the SEC or Secret Service (I can't remember which), any executive member of a financial institution is not allowed to sell off their shares. There is a threshold that they must adhere to in order to prevent depositors from seeing it as trouble and cause a run on their bank.
Many people on staff received bonuses just a few weeks ago, when those in charge knew the shut down was looming. So it seems they protected their own before their customers. which leads me to the next comment.
This bank was FDIC insured. Doesn't that cover the depositors' money so the taxpayers don't have to bail them out?
Finally, we have a President who constantly tell us the economy is ok, the border is ok, homelessness is ok, everything is ok. Talk about a crisis of confidence. His numbers are in the toilet but his handlers have opted to keep him in the dark.
Just one point. FDIC covers deposits UP TO $250k. After that something (or someone/s) else have to kick in or the funds above that are, well, very much at risk.
Thanks, I did not know that.
Actually is it $250k per depositor, so a joint account is covered to $500k
I agree with you
That’s big business for you. The regulations on this size of bank were relaxed by the former administration in 2018.
Connect the dots.
Well done today, Bill. Thanks.
You are most welcome. Methinks many folks aren’t aware it it.
I am appalled and worried that some gift bags at the Oscar Awards ceremony were valued at $126K. Does that mean the others were only in the 10s of thousands? WHY? There are horrendous problems in LA with homeless in the streets, gangs controlling significant parts of the city, yet these self-absorbed rich oligarchs thumb their noses at reality. Reminds me of the movie Hunger Games. Maybe the movie will mirror reality - revolution.
Something about the Oscars -- maybe it's all the ostentatious glitter and glitz -- always reminds me of the Hunger Games. I love the Academy Awards and enjoy speculating about them and watching them every year, but I feel this sort of sinister undercurrent. A "pay no attention to the man behind the curtain" kind of vibe. Or maybe I just watch too many movies.
Thank you for today's article. President Carter was a true full man. I wish we could change where the center of government is, it seems that once the people we elect go the, they lose their ethics and promises made to the people who elected them. Maybe it's the water, the air or the wealth they seem to accumulate. We really need term limits and also not let the let any members of their profit from their decisions.
Hi Bill. As far as the SVB and another bank that found it was standing on wobbly legs, I’m going to recommend that you and anyone else interested in being “in the room where it happened”, go to Representative Jeff Jackson’s Substack page and read about what exactly went on in the House when all this was going down. I believe y’all will be surprised. I might add that Rep Jackson represents the new 13th NC district that was created after the 2020 census came out. He is getting quite a following, not only from his district, but outside it, outside the state and every once in a while, even beyond our borders. The House had a 15 minute notice Zoom call about this so read for yourselves. It surprised me.
If you want to see someone handle a crisis of confidence and a bank run,
watch George Bailey handle the run on his savings and loan in Its a Wonderful Life. There is a leader.
Love that movie! I don't know how realistic that approach is for a modern-day run on the bank, but it's a such a good story and an enjoyable watch.
George Bailey didn’t have to worry about Zelle, Venmo and a generation of people who can move their financial assets in less time than it takes ne to type this message by using an app on their Apple iPhone
Re: Moving regrets. Last year you mentioned a friend interviewing couples about moves for an AARP article he was writing. We chatted, and our story was included in his piece. We absolutely loved the home we built in the late ‘90’s near Madison WI. Our decision to sell it and buy an older lake house in northern WI and a bayside bungalow near Panama City made us snowbirds. We will always treasure the memories of our Madison home in the country. We sold it to the parents of the young couple next door. We had the joy of building on family land and got to live next to my parents until their passing, and thought it poetic that we could help two family generations (three, with their newborn) have the opportunity for a similar treasure. Regrets are a burden shed by finding the gifts and opportunities in the decisions we’ve made, instead of living in the past.
I'm glad the article worked out but I never saw it. Can you send it to me?
I guess the full article is no longer available. Here's the Cliff Notes version: https://www.aarp.org/home-family/your-home/info-2022/reweys.html
We were one of 8 couples interviewed about their relocation stories. Our story didn't quite fit the overall theme of "which did they choose, this or that? See if you can guess!" This version is a bit closer to our story than the full article was. In brief, we first thought of moving from the country home outside Madison WI we'd built (ourselves) in the late '90's and took a weeklong trip to eastern TN and western NC to check out places near mountains and water. Nothing resonated, and on our way home we realized we didn't want to give up our WI roots. My wife said "well, let's be snowbirds." In August of 2021 we bought a little bungalow on the bay outside Panama City (sight unseen, though we did get a video walkthrough from the realtor) and were there from Dec to late March. Though we loved our country home and never imagined leaving it, we decided we'd always have wonderful memories and could make room for new ones. The northwoods of WI have a special place in our hearts, from years of enjoying a family cabin before it was sold. We decided that we could afford to get a lake home in the tall pines if we sold our country home. The perfect place found us in the fall of 2021, though in that very popular Minocqua, WI area the realtor advised us that we'd have to bid $50k to $100k over, pay cash, and waive inspection. The lake home was only for sale because the husband, a home remodeler, had a terminal illness. He had completed most of the remodeling of what was to be their dream home, but was in home hospice at the time it was listed. The house had just come on the market, and my wife was the first person to see it. Usually sellers are not at home during a sale, but the husband was still resting after a meal. The couple fell in love with her, because she shared our northern WI history and how we'd built our own home. We later learned there were higher offers contingent on financing, but they needed the cash. My wife was confident I would enjoy completing the needed work on the house, and she was right. We delayed our journey to FL until Dec, so that I could get internet set up for a security system and winterize the place. When we returned to WI in the spring of '22, we started moving things to the new place. Rewind to the previous fall, when we told the young couple who'd bought the house next door to our Madison area home that we were going to be moving, the wife asked if her parents could see the house, since she'd love it if they could live next door. We never had to list it. Her parents loved our place, and we gave them a super deal. It was poetic, since the reason we were able to build our own home in the country was because it was on family land next door to my parents. We got to have many wonderful years next door to my parents before they passed, both at home until the very end. It felt right to be able to offer this experience to our young neighbors. We closed on selling that home in late August last year. So that's the story (much of it, anyway). Thanks again for putting me in touch with the writer!