Strange, isn’t it?

Here we are again. If you’ll recall, it wasn’t so long ago that the sub-prime market went belly-up. And when that happened, the people who held subprime bonds, and the people who insured subprime bonds, both suffered an inability to pay at the same time. The extent of the problem was global, and America was just a carve-out.

This week, there was a run on Silicon Valley Bank. This is the bank that one of our founders has had dealings with in the past, and which provides startup capital to a lot of startups. But also they do provide banking services to normal people. But it’s not just startups that bank there. And a start-up is less than two people and a payroll sometimes. The repercussions in the region will be long-lasting. And America will feel it, it just isn’t clear now what the extent is.

But this episode isn’t just about the SVB problem. It’s also about how $42 billion dollars was withdrawn in a single day. Who was doing those withdrawals? Listen now to find out what was behind that, and what the implications are in a system that consistently sides with the haves over the have-nots.

References: 

https://www.nytimes.com/2023/03/12/business/janet-yellen-silicon-valley-bank.html

https://www.vox.com/technology/23634433/silicon-valley-bank-collapse-silvergate-first-republic-fdic

https://www.svb.com/private-bank/banking-services/private-banking-services