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I think this was a weird thing where deposit demand was so much greater than loan demand. They had too much money and thought they were doing a safe thing. But
by nemo44x 4y ago
I think this was a weird thing where deposit demand was so much greater than loan demand. They had too much money and thought they were doing a safe thing. But failed to consider the time aspect and how rapid interest rate increases nuke them.
Banks do provide a valuable service and having them reject deposits isn’t a solution.
- NovemberWhiskey 4y agoI have literally no idea what the treasury people at SVB could have been thinking.
- nemo44x 4y agoProbably about their bonus.
- scotty79 4y agoInvesting money is never a safe thing. They should just sit on it.