Bank Fail Consequences

We mentioned the SVB problem briefly yesterday.  As  you might expect, there will be consequences for a lot of people nationally, not just in Silicon Valley.

Those little "apps" out there?  The push-button/do-this shortcuts you find in QuickBooks and other places like your phone?  Lots of the developers (inventors) of those items were financed by SVB.  Worse:  they had their deposits at SVB due to the loan covenants, and only $250K of those deposits are insured.

The rest?  Gone Girl, at least for the time being.  That means a lot of payrolls will NOT happen, and aside from payrolls, payables (rent, utilities, paper, pencils, and computer-related costs, like internet service.)

And Wine Moms are facing a horrible future, too!

California's wine industry is on the brink of a financial crisis following the collapse of Silicon Valley Bank.

The bank had been the main financial institution for bank for wineries in the Golden State for almost three decades.

The California Department of Financial Protection and Innovation closed the bank on Friday following a run by venture capital customers.

On Friday night, thousands of wineries found that they were completely locked out of their accounts with no clear timeline as to when they might be able to access their funds. ...

Ugly.

By the way, Janet Yellen was President of the San Fran Fed until she moved to DC.  Wanna bet she heard rumors long before this outfit crashed?  How much you want to lose, sucker??