Good morning. Here are some of the stories I’m keeping my eye on this week, with the understanding that breaking news could come in all forms. Silicon Valley Bank. A good example of unexpected news was the sudden collapse of Silicon Valley Bank. Whether and how the government or a buyer might step in to save depositors from calamity remains to be seen, but there are already indications that Trump era deregulation, including dropping requirements for stress testing banks of a certain size, contributed to this disaster. (Disclaimer: My family’s company is an investor in a few companies and start-ups that have uninsured deposits at SVB.)
Thank you for your clear and concise reporting. I rely on you and Heather Cox Richardson to help me understand the truth of current events and how they affect our future 👍🏻👍🏻
Having moved to Switzerland thinking the same, it turns out you still worry about your homeland and what happens to others. And then you also learn about the same struggles in your adopted country and really are powerless. It is always better to stay and fight the fascists.
Jay, your final paragraphs are powerful. I have been a "student" of Germany in the 1930's and the actions during those years that led to fascism.The US, and many other countries, are well on the way toward a repeat. For people to remain silent we will be signing our end. For my part, I am an ordained minister in a major mainline denomination. So I have chosen to speak out from that platform...the majority of churches in Germany before WWll went along with Hitler. But a few brave religious leaders did speak out. Unfortunately several of them were executed. The churches of the US need to stand together against the extreme right-wing religious voice.
On days when I get so discouraged I read the comments on posts like this one. It is so heartening to find out how many of us are out “here” in the digital hinterlands, trying hard to keep the faith! But we are a reality in our difficult world and I believe so many more people have been shaken awake (and I actually like the word “woke” !) to realize the dangers inherent in certain fact-free and idiot politicians. I believe we will prevail. Stand strong, my friends.
The great poem by Pasor Martin Niemoller, titled "First They Came" is what everyone should be reading, and posting everywhere we can. Because, they're coming for me!!
It is really difficult, with the Republicans' relentless attacks on equality, decency and democracy, to not feel great anxiety. Arousing anxiety and wearing us down is of course part of their strategy (and a typical move in disinformation and propaganda campaigns). I find the apparent apathy of most people I know to be most disheartening. The pressures of day-to-day living seem to overwhelm them, and they don't have much energy left to pay attention to the efforts of the fascists to destroy our nation.
Montana is where the GOP sends their failed oligarchs to get elected. Gianforte. Zinke (I was too corrupt even for the Trump administration). maga Matt Rosendale. Now another one?! 🤦🏻♀️ I’ll be doing what I can to get Tester re-elected. We have to keep getting the message out that Biden-Harris and our Dems are doing good things for us.
Yellen has announced that there will be no bailout of SVB. There is a huge difference between bailing out a bank and protecting its depositors. The truly wealthy don't keep all their cash in a bank. The startups with loans from SVB were required to keep the loan proceeds there.
Certainly there is no need to protect the bank executives or stockholders. Any investment, even in a bank, has risks.
The depositors who depend on the deposited loans to meet payroll or basic overhead like rent and utilities are a whole 'nother story. I do hope the administration is able to craft something. It could expedite use of the existing structure of SBA loans to those start-ups in need of short-term funding till a longer solution is reached. It could also:
a) allow 250K of the amount to be covered by the FDIC for purposes of payroll and minimal overhead. That should buy some time.
b) sell the loans with some help to the buyers if the interest rates on the existing ones are below market now for those types of loans. Such "help" would be a priority claim in any SVB bankruptcy or other liquidation.
c.) Require banks that do a lot of startup loans or other business loans for payroll/overhead to keep a reserve that can only be invested in certain types of safe and reasonably liquid investments. Possibly short-term treasury bonds, if the GOP doesn't ruin US credit by letting the country itself default. I think this is one of the things deregulated by trump and it needs to be re-regulated.
d) craft a long-term insurance program for situations like this where a loan is used for payroll/overhead perhaps funded by a premium charge on the lender and the borrower to fund such insurance.
The main danger of domino-falling bank failure is the fear that spreads, causing runs on other, actually well-financed, banks. NO bank has enough cash on hand to meet a serious bank run.
Or those discouraged by the onslaught of disinformation and threats to democracy, noted author and wildlife watcher Hob Osterlund says:
when some albatross— who seldom shirk from any weather the earth hurls at them—encounter mega extreme winds, guess what they do? They fly into the eye of the storm and wait it out. Of course they do. Gives new meaning to fight or flight.
Jay, I believe one of the most dividing issues in this country ( and elections) will become the Ukrainiane war and our aid to them. I get the importance of defending freedom, but I am reading shocking reports of corruption and aid not getting to troops. These reports are coming from American jouranlists that report to mainstream media outlets and also others outside of corporate media. The "outside of corporate" media is where American journalist are reporting shocking details of the war and what is happening to many Ukrainian people such as staying in a large refugee camp for 3-5 days, afterwards if they don't have money, being sent back to their villages in dangerous areas. Also truck loads of aid gone missing and seen days later on the black market. American foreign fighters are reporting the soldiers just aren't getting riffles and ammo. Russia has much more industry, fighters, and resources than is being reported to us, it seems. Proxy wars present a lot of problems. I realize back in January Zelensky was trying to deal with the corruption. I imagine he knows its going to be hard for the American people to send tax payer money, if they think it is being stolen and sold for a higher amount on the black market. Would love for you to do a piece on your thinking of the war.
"The day may soon come when no one will be able to sit on the political sidelines." Jay, I think we're already at the point where everyone needs to take a stand. The problem is that not everybody sees it. How can we pump up the volume without starting to sound as crazed as the radical right? The reality is so outrageous, so insane, so lethal, that, when I work out in my head how I would explain it to someone, I sound as twisted as a Qanon conspiracy theorist.
Thank you Jay for being a bit of calm during difficult days. Sometimes I have to bite my tongue to keep from saying how I really feel about the state of our country and the extreme hatefulness of some of its people. I need to remind myself that I’m not one of them and to take care that I never become one either. Some days it’s all just so heartbreaking and frustrating and the desire to run away seems easier.
Thank you for your clear and concise reporting. I rely on you and Heather Cox Richardson to help me understand the truth of current events and how they affect our future 👍🏻👍🏻
Having moved to Switzerland thinking the same, it turns out you still worry about your homeland and what happens to others. And then you also learn about the same struggles in your adopted country and really are powerless. It is always better to stay and fight the fascists.
Jay, your final paragraphs are powerful. I have been a "student" of Germany in the 1930's and the actions during those years that led to fascism.The US, and many other countries, are well on the way toward a repeat. For people to remain silent we will be signing our end. For my part, I am an ordained minister in a major mainline denomination. So I have chosen to speak out from that platform...the majority of churches in Germany before WWll went along with Hitler. But a few brave religious leaders did speak out. Unfortunately several of them were executed. The churches of the US need to stand together against the extreme right-wing religious voice.
On days when I get so discouraged I read the comments on posts like this one. It is so heartening to find out how many of us are out “here” in the digital hinterlands, trying hard to keep the faith! But we are a reality in our difficult world and I believe so many more people have been shaken awake (and I actually like the word “woke” !) to realize the dangers inherent in certain fact-free and idiot politicians. I believe we will prevail. Stand strong, my friends.
The great poem by Pasor Martin Niemoller, titled "First They Came" is what everyone should be reading, and posting everywhere we can. Because, they're coming for me!!
It is really difficult, with the Republicans' relentless attacks on equality, decency and democracy, to not feel great anxiety. Arousing anxiety and wearing us down is of course part of their strategy (and a typical move in disinformation and propaganda campaigns). I find the apparent apathy of most people I know to be most disheartening. The pressures of day-to-day living seem to overwhelm them, and they don't have much energy left to pay attention to the efforts of the fascists to destroy our nation.
You are a voice of hope in the midst of the craziness my friend.
Montana is where the GOP sends their failed oligarchs to get elected. Gianforte. Zinke (I was too corrupt even for the Trump administration). maga Matt Rosendale. Now another one?! 🤦🏻♀️ I’ll be doing what I can to get Tester re-elected. We have to keep getting the message out that Biden-Harris and our Dems are doing good things for us.
I’m suffering from election fatigue. There is just no gap from one election’s completion to the running for the next.
Yellen has announced that there will be no bailout of SVB. There is a huge difference between bailing out a bank and protecting its depositors. The truly wealthy don't keep all their cash in a bank. The startups with loans from SVB were required to keep the loan proceeds there.
Certainly there is no need to protect the bank executives or stockholders. Any investment, even in a bank, has risks.
The depositors who depend on the deposited loans to meet payroll or basic overhead like rent and utilities are a whole 'nother story. I do hope the administration is able to craft something. It could expedite use of the existing structure of SBA loans to those start-ups in need of short-term funding till a longer solution is reached. It could also:
a) allow 250K of the amount to be covered by the FDIC for purposes of payroll and minimal overhead. That should buy some time.
b) sell the loans with some help to the buyers if the interest rates on the existing ones are below market now for those types of loans. Such "help" would be a priority claim in any SVB bankruptcy or other liquidation.
c.) Require banks that do a lot of startup loans or other business loans for payroll/overhead to keep a reserve that can only be invested in certain types of safe and reasonably liquid investments. Possibly short-term treasury bonds, if the GOP doesn't ruin US credit by letting the country itself default. I think this is one of the things deregulated by trump and it needs to be re-regulated.
d) craft a long-term insurance program for situations like this where a loan is used for payroll/overhead perhaps funded by a premium charge on the lender and the borrower to fund such insurance.
The main danger of domino-falling bank failure is the fear that spreads, causing runs on other, actually well-financed, banks. NO bank has enough cash on hand to meet a serious bank run.
Or those discouraged by the onslaught of disinformation and threats to democracy, noted author and wildlife watcher Hob Osterlund says:
when some albatross— who seldom shirk from any weather the earth hurls at them—encounter mega extreme winds, guess what they do? They fly into the eye of the storm and wait it out. Of course they do. Gives new meaning to fight or flight.
All in! Let’s do this.
Jay, I believe one of the most dividing issues in this country ( and elections) will become the Ukrainiane war and our aid to them. I get the importance of defending freedom, but I am reading shocking reports of corruption and aid not getting to troops. These reports are coming from American jouranlists that report to mainstream media outlets and also others outside of corporate media. The "outside of corporate" media is where American journalist are reporting shocking details of the war and what is happening to many Ukrainian people such as staying in a large refugee camp for 3-5 days, afterwards if they don't have money, being sent back to their villages in dangerous areas. Also truck loads of aid gone missing and seen days later on the black market. American foreign fighters are reporting the soldiers just aren't getting riffles and ammo. Russia has much more industry, fighters, and resources than is being reported to us, it seems. Proxy wars present a lot of problems. I realize back in January Zelensky was trying to deal with the corruption. I imagine he knows its going to be hard for the American people to send tax payer money, if they think it is being stolen and sold for a higher amount on the black market. Would love for you to do a piece on your thinking of the war.
Uninsured deposits? Whoah!
"The day may soon come when no one will be able to sit on the political sidelines." Jay, I think we're already at the point where everyone needs to take a stand. The problem is that not everybody sees it. How can we pump up the volume without starting to sound as crazed as the radical right? The reality is so outrageous, so insane, so lethal, that, when I work out in my head how I would explain it to someone, I sound as twisted as a Qanon conspiracy theorist.
Thank you Jay for being a bit of calm during difficult days. Sometimes I have to bite my tongue to keep from saying how I really feel about the state of our country and the extreme hatefulness of some of its people. I need to remind myself that I’m not one of them and to take care that I never become one either. Some days it’s all just so heartbreaking and frustrating and the desire to run away seems easier.