If you have been reading the news lately, you might have seen headlines about Silicon Valley Bank (SVB) and YouTube videos with dramatic clickbaity thumbnails:
Source: Robert Reich and Graham Stephan | YouTube
You might think that the end is nigh, and we might see another collapse like the 2008 Global Financial Crisis again.
But if you want the truth about what’s really going on.
Read on to find out.
What Happened to Silicon Valley Bank
For context, a bank run happens when a large number of depositors withdraw their money simultaneously from a bank due to concerns that the bank might become insolvent. As more and more people withdraw their funds, the bank’s cash reserves diminish, and it may ultimately become unable to repay its depositors. Bank runs have occurred in the past, including during the Great Depression and the 2008-09 financial crisis.
The Federal Deposit Insurance Corporation (FDIC) was created in 1933 as a response to...