{"id":324491,"date":"2022-11-10T06:40:04","date_gmt":"2022-11-10T11:40:04","guid":{"rendered":"https:\/\/www.sgtreport.com\/?p=324491"},"modified":"2022-11-09T21:58:57","modified_gmt":"2022-11-10T02:58:57","slug":"we-just-witnessed-a-new-lehman-brothers-moment-and-it-threatens-to-unleash-a-frenzy-of-panic-on-wall-street","status":"publish","type":"post","link":"https:\/\/www.sgtreport.com\/2022\/11\/we-just-witnessed-a-new-lehman-brothers-moment-and-it-threatens-to-unleash-a-frenzy-of-panic-on-wall-street\/","title":{"rendered":"We Just Witnessed A New \u201cLehman Brothers Moment\u201d, And It Threatens To Unleash A Frenzy Of Panic On Wall Street"},"content":{"rendered":"

by Michael Snyder, The Economic Collapse Blog<\/a>:<\/em><\/p>\n

\"\"<\/p>\n

Another domino has fallen.\u00a0 We are being told that the failure of FTX \u201cwould be kind of like a Lehman Brothers event\u201d, and at this hour FTX is on the verge of collapse.\u00a0 There was a chance that FTX could survive when Binance announced a shocking rescue plan, but after looking at the books Binance has reportedly backed out of the deal.\u00a0 As a result, investors that have poured billions into FTX are likely to lose everything.\u00a0 And many believe that FTX\u2019s heavily promoted token, FTT, is going to zero.\u00a0 If you have been waiting for a financial disaster to happen, this certainly qualifies.\u00a0 A lot of people that were \u201ccrypto millionaires\u201d not too long ago are going to be totally wiped out.<\/p>\n

TRUTH LIVES on at\u00a0https:\/\/sgtreport.tv\/<\/a><\/p>\n

Of course the collapse of FTX is going to be felt very widely, because a lot of really big \u201cheavy hitters\u201d\u00a0were very heavily invested in FTX<\/a>\u2026<\/p>\n

Some of the prominent investors in the crypto exchange include \u2013 BlackRock, Ontario Pension Fund, Sequoia, Paradigm, SoftBank, Circle, Ribbit, Alan Howard, Multicoin, VanEck, and Temasek.<\/p>\n

Sequoia invested in a $420 million round in the company at a $25 billion valuation in October 2021. Additionally, some of the heavy hitters in the capital market, namely Temasek, Paradigm, NEA, SoftBank, Lightspeed Venture Partners, Tiger Global, Insight Partners, the Ontario Teachers\u2019 Pension Plan Board, and others, poured in capital worth $400 million at $32 billion in January 2022.<\/p><\/blockquote>\n

Even celebrities such as\u00a0Tom Brady and Steph Curry had poured enormous sums of money into FTX.<\/p>\n

Now all of that money could be gone.<\/p>\n

One anonymous industry executive\u00a0actually told CNN<\/a>\u00a0that the collapse of FTX \u201cwould be kind of like a Lehman Brothers event for the space\u201d\u2026<\/p>\n

\u201cI\u2019m actually shocked by this,\u201d an industry executive told CNN Business. \u201cFTX failing \u2026 would be kind of like a Lehman Brothers event for the space. But if they have been successfully bailed out, then that would probably head things off at the pass.\u201d<\/p><\/blockquote>\n

Sadly, that industry executive is quite right.<\/p>\n

This is a major catastrophe.<\/p>\n

When the deal between Binance and FTX was originally announced, FTT immediately lost\u00a0over 2 billion dollars in value<\/a>\u2026<\/p>\n

FTT, the token native to crypto exchange FTX, lost most of its value after rival Binance, the world\u2019s largest cryptocurrency firm, announced plans to acquire the company.<\/p>\n

The coin traded at around $22 on Monday and sank below $5 Tuesday afternoon in New York. The sell-off wiped out more than $2 billion in value in the space of 24 hours.<\/p><\/blockquote>\n

But now Binance has completely pulled out of the deal.<\/p>\n

After looking at the books, Binance decided that the problems at FTX are\u00a0\u201cbeyond our control or ability to help\u201d<\/a>\u2026<\/p>\n

A day after announcing a plan to buy its embattled rival, cryptocurrency exchange Binance pulled out of the deal, saying FTX\u2019s problems were \u201cbeyond our control or ability to help.\u201d<\/p>\n

\u201cAs a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of http:\/\/FTX.com,\u201d Binance said in a statement.<\/p><\/blockquote>\n

So now there is no hope for FTX.<\/p>\n

And there is no hope for FTT.<\/p>\n

These developments definitely played a major role in the tremendous turmoil that we witnessed on Wall Street\u00a0on Wednesday<\/a>\u2026<\/p>\n

Stocks were lower on Wednesday \u2014 following recent market gains \u2014 as results of the midterm elections provided no clear answers about who would control Congress yet. A crypto selloff also weighed on markets.<\/p>\n

The Dow Jones Industrial Average fell 646.89 points, or about 1.95%, to 32,513.94. The decline was led by Disney, which fell 13.2% after the entertainment giant missed analysts\u2019 estimates on the top and bottom lines. The S&P 500 shed 2.08% to 3,748.57, and the Nasdaq Composite slid 2.48% to 10,353.17.<\/p><\/blockquote>\n

Meanwhile, the rapidly growing tech industry crisis that has recently erupted just continues to get even worse.<\/p>\n

We just learned that Facebook will be laying off more than 11,000 workers.\u00a0 This is the very first time the company has done\u00a0anything like this<\/a>\u2026<\/p>\n

Meta Platforms Inc. Chief Executive Officer Mark Zuckerberg said the company will cut more than 11,000 jobs, calling himself responsible for the first major round of layoffs in the social media giant\u2019s history.<\/p><\/blockquote>\n

In a letter to his employees, Mark Zuckerberg\u00a0took full accountability<\/a>\u00a0for the decisions to let people go\u2026<\/p>\n

Today I\u2019m sharing some of the most difficult changes we\u2019ve made in Meta\u2019s history. I\u2019ve decided to reduce the size of our team by about 13% and let more than 11,000 of our talented employees go. We are also taking a number of additional steps to become a leaner and more efficient company by cutting discretionary spending and extending our hiring freeze through Q1.<\/p>\n

I want to take accountability for these decisions and for how we got here. I know this is tough for everyone, and I\u2019m especially sorry to those impacted.<\/p><\/blockquote>\n

Of course it is easy for him to say such things because he still has a job and he is still one of the wealthiest individuals on the entire planet.<\/p>\n

Read More @ TheEconomicCollapseBlog.com<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

by Michael Snyder, The Economic Collapse Blog: Another domino has fallen.\u00a0 We are being told that the failure of FTX \u201cwould be kind of like a Lehman Brothers event\u201d, and at this hour FTX is on the verge of collapse.\u00a0 There was a chance that FTX could survive when Binance announced a shocking rescue plan, […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[141899,141898],"_links":{"self":[{"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/posts\/324491"}],"collection":[{"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/comments?post=324491"}],"version-history":[{"count":0,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/posts\/324491\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/media?parent=324491"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/categories?post=324491"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/tags?post=324491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}