"SVB was the victim of an old-fashioned bank run. " Uh—NO. That was the rocks further down on the avalanche. NOT the pebbles that actually started it. The pebbles that actually started the SVB avalanche were 15 years of near-zero interest rates, a hike in those interest rates by 1,700% in a single year, and a short-sighted risk manager w…
"SVB was the victim of an old-fashioned bank run. "
Uh—NO. That was the rocks further down on the avalanche. NOT the pebbles that actually started it.
The pebbles that actually started the SVB avalanche were 15 years of near-zero interest rates, a hike in those interest rates by 1,700% in a single year, and a short-sighted risk manager who wasn't smart enough to diversify SVB's investment portfolio between short-term and long-term securities.
"SVB was the victim of an old-fashioned bank run. "
Uh—NO. That was the rocks further down on the avalanche. NOT the pebbles that actually started it.
The pebbles that actually started the SVB avalanche were 15 years of near-zero interest rates, a hike in those interest rates by 1,700% in a single year, and a short-sighted risk manager who wasn't smart enough to diversify SVB's investment portfolio between short-term and long-term securities.