I’m 68, and I’m still learning new meteorological terms. Like “atmospheric river.” This is some crazy stuff.
Now, “bank failure,” I’ve heard of. Was hoping not to hear it again. I’m in “watchful waiting” mode on this one. We’re not taking the Time Machine back to 2008, are we? Looks to me like SVB did some stupid stuff, with too much specialization and too little diversification. The question now is how many other banks have done the same stupid stuff and are hanging by a thread.
But clearly The Fed’s efforts to cool the economy by progressively raising interest rates played a significant role in Friday’s failure. SVB catered almost exclusively to start-up tech companies, and when borrowing became expensive, those customers bailed. Let’s hope this doesn’t prove to be just the first domino to fall.
I do applaud FDIC for stepping in quickly. They didn’t mess around.
Warning. I’m imposing a 24-hour statute of limitations on bitching about Daylight Saving Time. You get from 2 a.m. Sunday until 2 a.m. Monday to gripe, if you so choose. After that, put a sock in it and get on with it. Bitching is most unbecoming. You’re losing an hour, not a leg. Have some dignity.