SVB: Hey, I just lost a ton of money selling government guaranteed bonds, so please invest in us
Others: Wait, why?
SVB: Haha, these startups, they seem to actually not be able to raise money, so we’re bleeding deposits, but it’s all fine, just give us some more capital and we’re fine
The VCs: Excuse me. You don’t have money to pay depositors?
SVB: No, what we’re saying is, we do. It was locked in with MBS earlier, and we sold it now and have $20 billion, which is like gazomba huge types. So yeah, relax, don’t panic.
Everyone: Don’t panic?
SVB: Yeah.
Instantly, everyone panics.
What we should not learn from the SVB crisis
Don’t panic
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