The End of Silicon Valley (Bank)

This article discusses the recent bank run on Silicon Valley Bank and its implications for the tech industry and Silicon Valley as a whole. The author explains the mechanics of a bank run and how it can become a self-fulfilling prophecy. They also highlight the role of the Federal Deposit Insurance Corporation (FDIC) in preventing bank runs and protecting depositors' funds. The article then delves into the specific case of Silicon Valley Bank, explaining how the bank became technically insolvent and the events that led to the bank run. The author argues that the response to the bank run revealed a lack of trust and a focus on self-interest within the tech ecosystem. They also discuss the government's intervention to protect depositors and the potential long-term consequences of this action. Finally, the article explores the broader implications of the loss of trust in Silicon Valley and the increasing demand for government intervention.