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Starting to think this was a manufactured bank run and whoever is manufacturing it wants it to spread. The first social media induced bank run. Kind of like wha
by UncleOxidant 4y ago
Starting to think this was a manufactured bank run and whoever is manufacturing it wants it to spread. The first social media induced bank run. Kind of like what wallstbets did to pump worthless stocks like AMC and GME only in reverse.
- anon291 4y agoEvery bank run leads to this exact conspiracy theory.
- UncleOxidant 4y agoSo why do there seem to be runs against other banks being encouraged now? It's the induced panic that can do damage... in stampedes or bank runs.
- maxbond 4y agoWhen it's revealed that one bank has a bad balance sheet, it suggests that other banks do too, because they all went through similar circumstances and had access to similar markets and probably came to similar decisions about what securities to buy (and when to buy them). Kind of like how when you learn that one major application has vulnerabilities due to misuse of log4j, it suggests other major applications will have similar vulnerabilities, because programmers working with the same flawed tools are liable to make similar mistakes. Not every Java application is vulnerable and not every bank is insolvent (presumably very few of them are) but a bad apple spoils the bunch.
- digitaltrees 4y agoThat’s right in general but not in the case of SVB. It was a bank that had a highly narrow client mix that all stopped raising money at the exact same time after a decade of raising tons of money. So SVBs depositors all started withdrawing money at the exact same time. No other bank in the world has that same client mix. If there is another Run it’s because of heard mentality not because of a real problem
- digitaltrees 4y agoPeople feel smart when they predict bad things. Fear is an animating force for the human brain both when felt personally and when triggered in others. Some people get off in triggering fear in others.
- towhom 4y ago[dead]