Reverie by Daniel Cawrey
It seems that many have forgotten just how quickly the speed of technology can topple things in this day and age. The phrase “the bigger they are, the harder they fall” may be more apt now, this era of what should be called viral bank runs.
What’s wrong with customers wanting a bank to operate properly and not do irresponsible things? Banks are supposed to be stewards of capital, safeguarding it. SVB wasn’t managing risk properly, leading it to report a loss on its capital.
Venture capitalists rely on institutions like Silicon Valley Bank (SVB) in order to do business. SVB’s bank run was based on business people fearing the inability to, you know, do business.
Fear led to a cascade of bank runs and consolidation in almost a lightning-quick series of events. At least when considering the sloth-like pace of the banking.
Molly White is a thought-provoking writer. Her website, Web3 is Going Just Great, is a sarcastic chronicle for the foibles in the crypto world. She’s encouraging healthy debate about what’s bad in blockchain, and the community needs that.
