The rules of the game are public. As a depositor, you know how much of your deposit is insured and how much is at the mercy of the bank's liquidity and solvency

The rules of the game are public. As a depositor, you know how much of your deposit is insured and how much is at the mercy of the bank's liquidity and solvency. Your uninsured deposit is a loan to your bank, and the more vulnerable you are to that loan failing, the more scrupulous you should be in choosing the bank you lend it to. Despite a consistent history of periodic busts, the silicon valley culture behaves with absurd optimism. New entrants don't believe that the good times will ever turn and that catastrophic risk is a real thing to attend to, and old hands think they know how to win the hot potato game this time. The potato is getting really hot now, and things will just get worse in the long run if you don't let the community learn that people get burnt and need to be more careful as they play the game.