The banking crisis and subsequent collapse of Silicon Valley Bank presents a compelling case study that deserves analysis. Antonio Velardo tells us how SVB, one of the main lenders of venture capital funds and emerging technology companies, sank.

The problem of diversification

The bankruptcy of Silicon Valley Bank was partly due to the lack of diversification of its investments. Much of its deposits were in long-term U.S. Treasury bonds and agency-backed mortgage securities, which became a problem when interest rates rose. Additionally, when the economic crisis hit the technology sector, many clients withdrew their money and the bank was unable to cover its obligations due to a lack of cash, declaring bankruptcy just 48 hours later.

Bank run

The bankruptcy of Silicon Valley Bank, says Antonio Velardo, was exacerbated by a bank run triggered in part by social media, which sowed panic over the bank’s lack of funds. After the announcement of a capital raise, SVB’s stock plummeted 60% on March 7. The next day, California regulators closed the bank and placed it under the FDIC’s supervision. Major technology companies such as Roku and Etsy had significant amounts of cash in SVB accounts, but the accounts were only insured up to $250,000.

Impact of the banking crisis on the technology sector

The technology sector has been greatly affected, as large technology companies have cut jobs and start-ups may have funding issues. “Markets are predicting a 37% probability of a 75 basis point cut in the Fed funds rate for the last meeting of this year,” clarifies Antonio Velardo.

Market outlook and sector allocation

“As a macroeconomic and equity analyst, I have observed that financing is becoming increasingly selective, and the companies that are at the greatest risk are those that are overly leveraged and have used leverage to acquire overvalued assets,” notes Antonio Velardo. These companies lack the ability to manage expensive debt and do not have the asset value to meet their debt service.

Finally, Antonio Velardo says that central banks are in a difficult position as they try to balance financial stability and inflation, which offers opportunities to investors. Additionally, for policymakers, this task poses a difficult challenge to overcome. “We must ask ourselves if a soft landing is still possible or if difficult decisions will be necessary.”

The world is constantly evolving, and technology continues to change the way we live our lives. One area where this is particularly evident is in travel. With the rise of smartphones and other photo-capturing devices, people can now document their adventures and share them with the world. However, it can still be difficult to pinpoint exactly where a photo was taken, even with the GPS capabilities of most devices. Fortunately, two entrepreneurs from India have come up with a solution to this problem.

Jwngdow Narzary and Arjun Narzary have created Foiti, a social travel app that is set to transform the way we explore the world. The app’s most groundbreaking feature is its ability to detect the precise coordinates of photos uploaded by users. This makes it easy to not only visit the exact location where a photo was taken but also to discover new and exciting places that might not appear on traditional maps. With Foiti, users can explore hidden gems, far beyond the well-known tourist spots.

Foiti’s “Explore” feature is particularly exciting. It enables users to browse through random photos and recommendations based on their interests. Users can search for specific destinations, regions, or even countries. They can also scroll through the map and see all the photos of a particular location. This feature opens up endless possibilities for travelers, providing a gateway to new and exciting destinations.

In addition to its groundbreaking features, Foiti also offers several other tools to enhance the travel experience. Users can meet with locals, find travel partners, see nearby attractions or those in a specific destination, follow other users, and create bucket lists. The app is continually evolving, and soon it will also allow users to ask questions to the community, write travel stories, create itineraries, and much more.

In conclusion, Foiti’s poised to revolutionize the way we travel. Its ability to detect the coordinates of photos uploaded by users and its “Explore” feature makes it easy to discover new destinations and hidden gems. Additionally, the app’s other features, such as meeting locals and finding travel partners, make it a comprehensive solution for travel enthusiasts. With Foiti, travel has never been more accessible, affordable, or exciting.

You can check out the app here: https://play.google.com/store/apps/details?id=com.foiti.android