LogFAQs > #972145793

I don't know all the exact details of Signature bank but SVB failed purely due to stupid decisions. There was nothing shady or corrupt and it wasn't based on some unstable platform with shady intentions like 2008. 2008 was a house of cards that collapsed. In summary, SVB had a shit ton of cash and thought, lets put the money to use but with the lowest risk possible - lets buy bonds. Well they bought bonds at literally the worst possible timing and now they're essentially losing money on it with interest rates skyrocketing immediately after that.

I think the issue is being overblown and that mentality that this is a huge becomes a self fulfilling prophecy and makes it a big deal. Literally everyone is getting their money. But once panic sets in its hard to reverse, its a slippery slope. Thats partly why Signature bank failed. Now 100 of 125 banks in the US with over 5bn are in the red today. Small bank stocks are plummeting. Panic is setting in. Thats the worst case scenario. But it won't be anywhere even remotely close to 2008.

However, the economy has been impending recession for a while and I wonder if this will accelerate that.