SVB's demise could herald 10% plunge in US stocks, recession: analyst

However, Emanuel suggested the decline in stocks would lay the groundwork for a new bull market.

"We do want to see enough of a downturn to make stocks attractive, to cause this cathartic moment where we can reset and multiples can begin expanding as the economic cycle turns," he said.partly because it invested its deposits in long-duration bonds. Those plunged in value as the Federal Reserve, in an effort to stamp out inflation, hiked interest rates from nearly zero to upwards of 4.5% over the past year .

The California-based lender launched a stock sale last week to shore up its liquidity, but the move spooked its customers, causing a wave of withdrawals known as a bank run. SVB was caught short of cash, resulting in the Federal Deposit Insurance Corp.

Some local closed today and people are panicking. This will be bad if mass hysteria isn't rein in.

Is this a WEF analyst?

Lol, in the growth space that became daily volatility last year

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Bitcoin jumps 10% with crypto market topping $1 trillion as U.S. creates backstop for SVB depositorsCryptocurrencies rallied on Monday as the U.S. government moved to protect depositors of the collapsed Silicon Valley Bank and HSBC bought the bank's U.K. arm. That just the beginning Hehe.. Siuuuu 🚀🚀 Dow Futures -135 S & P Futures -5 NASDAQ Futures +25 Huge drop from the last night. The Market still sees systemic problems with the banks. Not enough money to cover all deposits. Bitcoin will be the next to drop! The only safe haven is short term Treasuries
Source: CNBC - 🏆 12. / 72 Read more »