CNBC’s Jim Cramer urged investors to buy Silicon Valley Bank stock $SIVB last month, saying it was “cheap” and has “room to run” – SVB on Friday was shut down by regulators in the biggest bank failure since the 2008 liquidity crisis.
Silicon Valley Bank reportedly holds $173 billion in deposits.
The Fed interest rate is at 4.57% and $117 billion of Silicon Valley Bank securities are yielding only 1.56-1.66% – this is causing a run on the bank.
California regulators shut down the bank and the FDIC took over.
Silicon Valley Bank holds $173B of deposits.
Fed interest rate is at 4.57%
SVB’s $117B of securities (MBS) yield 1.56-1.66%
This is causing a bank runIf enough VC / tech cos pull their money,
—SVB may be bankrupt
—Many startups may be wiped out
—Crash may cause a recession! pic.twitter.com/wA38Mx1edb— Deedy (@debarghya_das) March 10, 2023
Enter CNBC’s Jim Cramer…
Last month Cramer urged investors to buy Silicon Valley Bank stock.
A few weeks later the bank was shut down.
WATCH:
One month ago, Jim Cramer urged investors to buy Silicon Valley Bank stock $SIVB, saying it was “still cheap” and has “room to run.”
The stock’s value has since dropped by 66% following concerns that the bank is on the brink of collapsing. pic.twitter.com/5jgjqTGxld
— Watcher.Guru (@WatcherGuru) March 10, 2023
This isn’t the first time Cramer led investors off a cliff.
Jim Cramer enthusiastically encouraged investors to keep their money in Bear Stearns shortly before two of its highly leveraged hedge funds collapsed and it needed to be bailed out during the 2008 liquidity crisis.
“Bear Stearns is fine! Do not take your money out!” Cramer shouted on his “Mad Money” show on March 11, 2008. “Bear Stearns is not in trouble!”
Less than a week later Bear was bailed out for $2 per share.
WATCH:
The post Jim Cramer Urged Investors to Buy Silicon Valley Bank Stock One Month Before Regulators Shut it Down (VIDEO) appeared first on The Gateway Pundit.
