Why the Silicon Valley Bank Collapse Sucks
Startups will have to find money for weed elsewhere
Turns out bank runs have negative consequences for banks too, not just FTX. Rich people sure do find creative ways to lose all of our money. At least the FDIC will save us, after a long period of time. A really long period of time.
I hate this collapse because it creates misconceptions and stifles innovation.
Bank Runs
For those unaware, here’s a video explaining how the bank dun goofed. The TLDR is the bank plunged by holding a high percentage of bonds while the Federal Reserve continuously increased interest rates. Once news spread, people started withdrawing all their money. The bank didn’t have enough money to handle withdrawals and our friends at the Federal Deposit Insurance Corporation (FDIC) stepped in.
For my conservative readers, woke lefties think money is infinite because downward fall of western men due womyn. Blame woke culture and throw money into crypto.
Speaking of crpyto…
Crypto Bros
Fuck me, crypto could have a resurgence because of this. They’re going to milk the ever loving fuck out of this story trying to strike fear into consumers about banks. Conveniently leaving out the FDIC refunding…
