{"id":6605,"date":"2023-03-13T04:00:00","date_gmt":"2023-03-13T10:00:00","guid":{"rendered":"https:\/\/milesearnandburn.com\/?p=6605"},"modified":"2023-04-18T15:38:59","modified_gmt":"2023-04-18T21:38:59","slug":"monday-ramblings","status":"publish","type":"post","link":"https:\/\/milesearnandburn.com\/index.php\/2023\/03\/13\/monday-ramblings\/","title":{"rendered":"Monday Ramblings"},"content":{"rendered":"<p>No doubt you\u2019ve heard from dozens or hundreds of sources about Silicon Valley Bank\u2019s collapse, and while it looks like all deposits will be available and accessible, we can still learn something here.<\/p>\n<p>First, let\u2019s talk about some of the relevant ripple effects that we\u2019ve seen over the weekend:<\/p>\n<ul>\n<li><a class=\"ek-link\" href=\"https:\/\/www.cnbc.com\/2023\/03\/10\/fintech-brex-got-billions-of-dollars-in-silicon-valley-bank-deposits-thursday.html\">Brex had account holders bring billions of dollars in deposits<\/a> from Silicon Valley Bank, realized they don\u2019t have to compete nearly as hard, and then <a class=\"ek-link\" href=\"https:\/\/viewfromthewing.com\/the-points-and-miles-fallout-of-silicon-valley-bank\/\">immediately devalued their points<\/a>: mileage transfers are now 1,670 to 1,000, statement credits are now worth 0.6 cents per point, and crypto buys are worth 0.6 cents per point (but their value could decrease even faster than inflation)<\/li>\n<li><a class=\"ek-link\" href=\"https:\/\/www.doctorofcredit.com\/enzo-terminates-cashback-rewards-program\/\">Enzo ended its cash back program<\/a>, including its 1% cash back debit card<\/li>\n<li><a class=\"ek-link\" href=\"https:\/\/plastiq.com\/\">Plastiq<\/a> suspended payments due to their reliance on Silicon Valley Bank accounts, and although probably not related to SVB, lost their <a class=\"ek-link\" href=\"https:\/\/www.marketwatch.com\/story\/colonnade-acquisition-to-wind-down-won-t-complete-plastiq-deal-6f2ff452\">agreement to IPO via the Colonnade SPAC<\/a><\/li>\n<li>Starting yesterday, depositors in wealthy neighborhoods were <a class=\"ek-link\" href=\"https:\/\/twitter.com\/GRDecter\/status\/1634910649732964352\">lining up at other potentially troubled banks<\/a> worried that assets above $250,000 may be at risk<\/li>\n<li><a class=\"ek-link\" href=\"https:\/\/www.wsj.com\/articles\/crypto-investors-cash-out-2-billion-in-usd-coin-after-bank-collapse-1338a80f\">Circle\u2019s dollar-pegged USDC trading price fell<\/a> 12% because the dollars backing USDC were at SVB<\/li>\n<\/ul>\n<p>Next, we can project a bit about what will happen in our game based on these datapoints:<\/p>\n<ul>\n<li>Bank bonuses will become more important from a risk avoidance perspective for high net-worth individuals and businesses in case the next failure doesn\u2019t have assets to cover beyond FDIC limits and the Fed\u2019s new emergency fund doesn\u2019t come through <\/li>\n<li>Banks will be more willing to offer bonuses in the short to medium term to win new high net-worth customers<\/li>\n<li>Credit card companies sign-up bonuses will probably go down because banks will want to increase their banking bottom line in the short term<\/li>\n<li>Big banks will offer more credit card incentives for deposit holders to keep them locked into the ecosystem (like BoA\u2019s Premium Rewards program) \u2013 <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-01-13\/wall-street-sees-customers-demanding-higher-yields-on-deposits#xj4y7vzkg\">JPMC is a notable exception<\/a> to this though <\/li>\n<li>FinTechs will be less rewarding as competition lags and the need to diversify banking partner risk increases<\/li>\n<li>Businesses and characters that need loans to continue may find themselves in a rough spot because long term financing prospects look hard and expensive<\/li>\n<\/ul>\n<p>Blah, blah, blah, how about something immediately actionable <s>poindexter<\/s> MEAB? Fine, let\u2019s get back to basics: <a class=\"ek-link\" href=\"https:\/\/gcgalore.com\/office-depot-officemax-buy-300-mastercard-gift-cards-save-15-instantly\/\">Office Depot\/OfficeMax has $15 back on $300 or more in Mastercard gift cards<\/a> through Saturday. These are <s>Metabank<\/s> Pathward gift cards, so as always, have a liquidation plan in place (unlike Silicon Valley Bank, amirite?) <\/p>\n<div class=\"wp-block-image is-style-editorskit-rounded\">\n<figure class=\"aligncenter size-large is-resized\"><img alt=\"\" class=\"wp-image-6617\" decoding=\"async\" sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"https:\/\/milesearnandburn.com\/wp-content\/uploads\/2023\/03\/magnesiumm-1024x765.webp\" srcset=\"https:\/\/milesearnandburn.com\/wp-content\/uploads\/2023\/03\/magnesiumm-1024x765.webp 1024w, https:\/\/milesearnandburn.com\/wp-content\/uploads\/2023\/03\/magnesiumm-300x224.webp 300w, https:\/\/milesearnandburn.com\/wp-content\/uploads\/2023\/03\/magnesiumm-768x574.webp 768w, https:\/\/milesearnandburn.com\/wp-content\/uploads\/2023\/03\/magnesiumm.webp 1300w\" width=\"419\"\/><\/figure>\n<\/div>\n<p class=\"has-text-align-center\" style=\"font-size:14px\">An excerpt from the Silicon Valley Bank rate hedging playbook.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>No doubt you\u2019ve heard from dozens or hundreds of sources about Silicon Valley Bank\u2019s collapse, and while it looks like all deposits will be available<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_editorskit_title_hidden":false,"_editorskit_reading_time":2,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","footnotes":""},"categories":[53,65],"tags":[],"class_list":["post-6605","post","type-post","status-publish","format-standard","hentry","category-gift-cards","category-status"],"_links":{"self":[{"href":"https:\/\/milesearnandburn.com\/index.php\/wp-json\/wp\/v2\/posts\/6605","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/milesearnandburn.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/milesearnandburn.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/milesearnandburn.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/milesearnandburn.com\/index.php\/wp-json\/wp\/v2\/comments?post=6605"}],"version-history":[{"count":15,"href":"https:\/\/milesearnandburn.com\/index.php\/wp-json\/wp\/v2\/posts\/6605\/revisions"}],"predecessor-version":[{"id":7429,"href":"https:\/\/milesearnandburn.com\/index.php\/wp-json\/wp\/v2\/posts\/6605\/revisions\/7429"}],"wp:attachment":[{"href":"https:\/\/milesearnandburn.com\/index.php\/wp-json\/wp\/v2\/media?parent=6605"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/milesearnandburn.com\/index.php\/wp-json\/wp\/v2\/categories?post=6605"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/milesearnandburn.com\/index.php\/wp-json\/wp\/v2\/tags?post=6605"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}