The Two Words You Never Want to Hear Following the Collapse of Silicon Valley Bank

Matt Vespa / Townhall Tipsheet

 

In Biden’s America, trains are derailing, airplanes are nearly crashing, and banks are failing. Some of you who can track these financial details daily probably saw this coming. Terrible things can happen when you’re a financial institution leveraged heavily in the tech industry, and that sector takes a beating on Wall Street. That occurred with Silicon Valley Bank, which California officials shuttered after a run caused its collapse. The Federal Deposit Insurance Corporation is now taking control. Signature Bank, one of the top institutions for cryptocurrency, was shut down over systemic risk concerns. What’s next is on everyone’s mind, especially about whether this could be a repeat of the 2008 financial meltdown. The words 'moral hazard' have been tossed around since the failure of SVB, which will keep people on edge.

 

It will all depend on the analysis regarding SVB’s balance sheets, which are being combed through right now. Many have been clamoring for a bailout, which...Read more here.