Things That Make Midwesterners Scratch Their Heads
Out here this writer doesn’t pretend to comprehend the world of Silicon Valley finance. Way too many zeros in front of the decimal point.
But it seems it might occur to some of those smart folks that having more than 250-thousand dollars in a bank might cause them to look around and put some of that additional money in some other banks. That way they could sleep at night knowing they’d be under the limit of FDIC protection. My late mother once saw a bank run as a young woman during the Depression. The memory remained a vivid one for her.
You’ve probably heard the Oracle of Omaha’s often quoted remark, “It’s only when the tide goes out that you can see who is swimming naked.” Well, as a friend told me today, by covering ALL SVB deposits, the FDIC just made the tide come back in. At least for the moment.
I imagine there will be much sturm und drang in the coming days. The White House says those responsible will be “held accountable.” I wonder how.