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Bank runs are the rational thing to do in the face of an insolvent bank whose deposits are decreasing. SVB mainly serviced startups who would need to withdraw d
by HDThoreaun 4y ago
Bank runs are the rational thing to do in the face of an insolvent bank whose deposits are decreasing. SVB mainly serviced startups who would need to withdraw deposits in the current macro climate so there is a good chance they would eventually run out money. As soon as people realize that it's about the correct game theory choice to pull the money and run.