What We Learned: Something Is Seriously Wrong With Silicon Valley
Brian Romanchuk
Every Complex Banking Issue All At Once: The Failure of Silicon Valley Bank in One Brief Summary and Five Quick Implications
Nathan Tankus
The Big Picture
All the Things We Do Not Know About SVBBarry L. Ritholtz is co-founder, chairman, and chief investment officer of Ritholtz Wealth Management LLC.
China Daily (Chinese state-sponsored media)
When you have $400 in savings, as far as you're concerned, there's no banking crisis.
ReplyDeleteNo mention anywhere that Fed lowered the RRR to 0% from 10% in knee jerk reaction to their adjustment of depository reserves to a level less than their own 10% minimum in September 2019…
ReplyDeleteAll these smaller banks don’t have any reserves to immediately transfer for withdrawals…
Have to liquidate govt securities…
MMT: “reserves don’t matter!”
ReplyDeleteWrong…
I'm not sympathetic to individual depositors who would have gotten a haircut above 250 grand.
ReplyDeleteI'm okay with bailing out small businesses who had more than 250K.
I know and have lived by the $250K limit, but why $250K? And why any specific limit?
ReplyDeleteMoral hazard.
ReplyDeleteFDIC insurance rates probably considered too high to insure the whole $17T of deposits…
ReplyDeleteDoes anyone know what it costs me (or my bank) to have a $250K account at my bank?
ReplyDelete