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If SVB didn’t get bailed out, there would be a run on small banks. Unfortunately, the government can’t bail out every small bank, so there may still be a run on

by rcme 4y ago

If SVB didn’t get bailed out, there would be a run on small banks. Unfortunately, the government can’t bail out every small bank, so there may still be a run on the banks. Time will tell.

dragonwriter 4y ago
> Unfortunately, the government can’t bail out every small bank Well, they could adopt a new program providing cash loans against a variety of term investments to deal with liquidity crunches of the type SVB faced for all banks. That would be equivalent to a bailout (at negative expected cost) of all small and large banks with similar issues to SVB. Oh, yeah, they did that today. https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312a.htm https://www.federalreserve.gov/newsevents/pressreleases/mone...