Twitter fueled run on Silicon Valley Bank, new paper finds

https://www.axios.com/2023/04/24/twitter-svb-bank-run

by imartin2k • 3 years ago

23 6 3 years ago

axios.com

albatross133• 3 years ago

Ah yes, let's blame everyone else for the woes of fractional reserve banking.

Here's a novel idea- don't loan money you don't have ^_^

BulgarianIdiot2• 3 years ago

Without fractional reserve banking, banking kind of loses purpose. The problem is knowing where to draw the line. It's like dieting vs drugs. If you're a drug addict, you can stop taking drugs. But if you're trying to diet, you can't stop eating, so there's always this uneasy balance and a temptation to go overboard. Derivatives, risky bets, money printing.

albatross133• 3 years ago

I don't think banking loses its purpose, but I do think it loses its insane profitability.

A bank is supposed to be a safe location to store my money, because storing it under my mattress is a far less guarantee of safety. It should be a slow burn towards profitability.

To your point, that goes out the window with fractional reserve banking and it's exacerbated when the Federal Reserve pulls shenanigans like remove reserve requirements...which still seems to be the case.

Either way the points are moot, the banking system ain't gonna change until we have some ungodly catalyst. Hopefully no one blames some dumb social media website for that either.

iamnotamouse• 3 years ago

Twitter fueled run
Which came first, the tweets or the bank run?

https://en.wikipedia.org/wiki/Post_hoc_ergo_propter_hoc

Twitter fueled run on Silicon Valley Bank, new paper finds

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