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> They made a bet that people wouldn't need their money back right now. It's the constant risk in fractional reserve banking. Meh. Fractional reserve banking
by __blockcipher__ 4y ago
> They made a bet that people wouldn't need their money back right now. It's the constant risk in fractional reserve banking.
Meh. Fractional reserve banking is not without risks, but I don't see any mention from you of the fact that SVB was holding bad assets.
- JohnFen 4y agoIt's not that they were holding bad assets, it's that they put too much money into assets that took too long to mature. They were betting that they wouldn't need that money sooner than that, and that's the bet they lost.