It might be impossible to anticipate which way exactly things will go wrong, but I’d say it’s pretty easy to anticipate the ways things can go wrong. I see this

It might be impossible to anticipate which way exactly things will go wrong, but I’d say it’s pretty easy to anticipate the ways things can go wrong. I see this as at least ignorance, probably negligence, and at most, fraud, on the part of a lot of folks involved. This has been the most widely predicted recession in history as far as I am aware. The Fed has openly and deliberately said they will raise interest rates until something breaks. Investing in assets that are negatively correlated with interest rates under these conditions is a terrible idea. Professional bankers should know this. Startups are far less negligent, but still, could diversify their deposits with multiple banks (or use “real” banks) to mitigate their risk. Startups are risky enough; having sound money is important and I wouldn’t be risking it with a regional bank. The Fed is negligent for treating financial markets like penny stocks. They had nothing else in their tool chest to fight inflation, though, so I can’t entirely blame them. Politicians and the Fed are negligent for creating so much liquidity that it spurred such immense inflation. Anyone with a macro-101 level of economics could have foreseen this. Voters are negligent and ignorant for their unwillingness to elect better politicians and demand change and reform in an area that continually fails them. We are failed time and time again by the banking system because it is fundamentally unable to be guaranteed solvent. We bail banks out or get by a crisis somehow and forget about it until the next time around and then shout “wow, who could have seen this coming?!” as if it is the first time a bank has failed.