Dear Readers,
Recent developments surrounding the failures of Silicon Valley Bank and Signature Bank have been eye opening to say the least. We spoke already this week about how easily U.S. regulators were able to swoop in, shut down the banks, and confiscate customer assets. One thing I did not expect however, was how many people would clamor for government action to bail out the banks and their depositors.
Let me clarify: it’s not surprising in the least to see the depositors themselves begging for government relief — when someone wakes up to find they’ve lost thousands or millions of dollars overnight, they’ll quickly look for ANYONE to save them. Having said that, it was surprising to see so many people, who were seemingly unimpacted directly by the failures, doomsaying about widespread bank runs and economic meltdowns if the government didn’t step in to backstop the losses.
