So they amicably saved all depositors in SVB, but not investors, because using taxpayers money to protect bad investment would be very unfair - unless its too big to fail, then it's "necessary". Otherwise we could get a depression, and depression is very bad and should never have to happen.
The problem being that now no investor would ever want to invest in a small, not-too-big-to-fail bank, especially in volatile times such as these. So all investors are pulling their money out of small banks, even at massive losses.
We might be seeing the start of an investor-bank-run, instead of a depositor bank run. Also just called a _crash_ I guess.
The problem being that now no investor would ever want to invest in a small, not-too-big-to-fail bank, especially in volatile times such as these. So all investors are pulling their money out of small banks, even at massive losses.
We might be seeing the start of an investor-bank-run, instead of a depositor bank run. Also just called a _crash_ I guess.