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Bankruptcy of Silicon Valley Bank
What Happened With SVB?
Silicon Valley Bank (SVB) has gone bankrupt.
SVB is a relatively small US bank. Its stock market value is about 15,000 million euros.
However, its bankruptcy has caused the market to remember the fear of the financial crisis of 2008.
Why Fear Of Financial Crisis?
Traditional Bank Business
A traditional bank receives money from its customers and then uses that money to make loans to other customers.
Beyond loans to own customers, what the traditional bank cannot lend to own clients, it lends to other banks or invests in bonds.
But this represents a relatively smaller percentage.
Special Bank Business
SVB was a special bank.
It was specialized doing business with start-ups of technology.
The start-ups companies get a lot of money at once in financing rounds with investors, and they have to deposit that money in a financial institution until they need it.
SVB Financial Growth
SVB went from having 44,000 million dollars in deposits in 2017, to having 173,000 million at the end of 2022.
What Was SVB Doing With Money?
A part was lent, like all banks, especially to private equity or venture capital funds.
However, most of the money from the deposits was invested in bonds, which accounted for almost 60% of its total balance, about 4 times more than in a traditional bank.
Interest Rates Hikes
The rapid rise in interest rates in the last year has caused the value of bonds to fall, because the new bonds (with higher interest rates) are worth more than the old ones.
Although the bonds are worth less, that "loss" is not a problem as long as they do not have to be sold, because it is recovered over time.
Money Out Of The Bank
But SVB had to sell.
With rising rates, tech companies have had to face higher expenses, and have taken a lot of money out of the bank.
Other companies withdrew their money just in case, even if they didn't need it.
Loss Of 1,800 Million Euros
SVB had to sell part of its bonds in order to repay its depositors.
And that generated real losses of about 1,800 million euros.
Those losses don't break the bank, but they weaken it.
So they decide to increase capital by about 2,500 million dollars, to improve their strength.
SVB Clients Afraid of Money Loss
However, upon revealing the amount of the losses, clients became afraid and began to withdraw money en masse.
The fact that its clients are a small group of interconnected companies accelerated the panic.
Silvergate Bank Cryptocurrencies
Also, in parallel, there was (in an unrelated way) the bankruptcy of a small bank specializing in cryptocurrencies, Silvergate, which failed to recover from the shock of the FTX collapse a few months ago.
American Regulator
Faced with panic, the American regulator opted to intervene the bank on Friday, stopping its activity.
Signature Bank
Another bank that was focused on cryptocurrencies due to the systemic risk it entailed, Signature Bank, has also intervened.
Why It is Important?
It is due to the possibility of contagion.
In the 2008 crisis, the lack of bank credit was the biggest trigger for the collapse in economic activity.
No bank was sure of the solvency of the rest of the banks, so they chose not to risk lending to anyone.
Now doubts arise about the soundness of the banks.
What Is Going To Happen?
At the moment the bank has been intervened and depositors are going to get their money back.
Investors and bondholders are unlikely to get anything back.
Federal Reserve's View On Interest Rates
In addition, the risk that banks stop lending to each other due to mistrust could lead to a slowdown in the economy, and that may alter the Federal Reserve's view on interest rates.
US & European Market
The market has reacted: expected gains in the US are delayed or softened.
Europe will also have to be vigilant.
This puts fixed income up (because tomorrow's bonds don't have to be worth more than today's).
Rest Of The World Market
The contagion to the rest of the world should be limited, since the crisis is caused by the specific business model of this bank, and this model does not exist in Europe.
European banks have between 15 and 20% of their assets in bonds, while SVB had 56%.
No Global Banking Crisis
There are not enough elements to provoke a global banking crisis.
However, it is natural that for a while there would be doubts about the soundness of the banking sector and the effects of rapid rate hikes on their balance sheets.
But the central banks have announced that they are willing to help banks in need.
Popularity of Abusive Language in Media Contents
You may wonder why I am writing an article on the issue of the popularity of abusive language in media contents. By media content I mean radio, television, movies, web series, documentary, youtube, social media which allow you to hear and watch the contents that are produced and streamed.
We can watch and hear the voices of Radio & TV anchors, actors of movies and artists of video creations. However, the print media is different because we need to read the contents written.
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You can hear it in audio & video form
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Watching & hearing need less concentration than reading a content.
I decided to write this article because I find that now too much abusive language, in Hindi we call "Gaali", is used in movies, radio, television, web series, youtube and other social media contents which are released from India.
Earlier this was not the case. 10 years ago these media contents were free of abusive words and we could watch and hear them with the whole family but now the case is different. We are watching a movie or web series with kids of the family but we don't know when the artists would start to speak with a few abusive words. This makes a shameful condition in front of kids. Does it not happen in your life?
I remember that in the 80s and 90s the adult movies, not porn movies, were shown on Indian national television "Doordarshan" late at night after 11 pm when the kids were in their beds & sleeping. Even the adults of the family avoided watching such movies because of late night & they prefered to go to bed & sleep than watching movies. In the 80s and 90s there were no cable connections to watch several TV channels. In a middle class Indian family, Radio and Television were the only source of daily entertainment.
The clean media contents from abusive words allows us to watch and hear the media contents in the 80s and 90s.
Now the situation is different for use of abusive words in the creation of media contents. I have watched a youtube short in which the famous bollywood actor from Bihar, Manoj Bajpayee, is stating that Gaali (abusive words) are our language & culture and we cannot avoid using them.
It is OK but it is acceptable if you use them on your private level, but it is not recommended to use abusive language when you are playing a principal role in a movie and a webserie because those are contents that are released publically & many families watch it with kids.
I agree people use abusive language in professional life because of stress and creating a pressure to achieve their goals in professional competition but mostly they use it when they are out of their house. In a middle class Indian family, people avoid using abusive words at home. Why do they do it?
The simple reason is they don't want their kids or family to hear abusive words and remember and use them. Kids' minds are in a developing phase. It records easily what is heard and watched. Kids also watch television, movies, youtube videos and hear music and interesting talks on radio.
Now the Manoj Bajpayee and other actors or famous people or programs of radio, television and other sources of entertainment say that the Gaali is our Indian language and culture and we have rights to use it in our creations of media content, then, think what will happen with kids. They will learn to speak in abusive language from childhood, and how they will talk with parents one can imagine easily.
I live in Spain and I have seen how the kids talk with parents and in family & with friends. I can understand this is a different culture. But, in India, it is still avoided. India is progressing towards becoming an advanced country & now many people talk about their rights. It is Ok, you have rights but others also have their rights. Each right has its limitations.
The Indian government needs to ban release of such media contents in Indian territory and penalize the creators for creating such media contents, so that a family can entertain with any media content without any preoccupation and with kids.
I don't know what you think? You can send me your opinion & I can include it in this article if it is appropriate or you can make a comment in the comment section.
बायोफार्मा उद्योग में प्लाज्मिड डीएनए
इस में जेनस्क्रिप्ट प्रोबायो के प्लास्मिड प्लेटफॉर्म प्रौद्योगिकियों पर चर्चा करेंगे, जिन्हें उन्नत पद्धतियों का उपयोग करके उच्च पैदावार में प्लास्मिड डीएनए के उत्पादन के लिए डिज़ाइन किया गया है।
इसके अलावा व्यावसायिक उत्पादों के लिए प्रीक्लिनिकल प्लास्मिड तैयार करने का वर्णन करेंगे।
लालू प्रसाद और राबड़ी देवी की बेटे और बेटियां
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