Comments by "Daniel Bradford" (@Falconlibrary) on "FDIC: Insured Silicon Valley Bank deposits will be available no later than Monday" video.

Here's the breakdown: 2020-2022: Banks invested deposits into long-term treasury securities that until recently were paying very low interest rates. 2023: Interest rates on short-term securities now exceed the interest on the long-term securities by a wide margin. This greatly decreases the value of the securities held by the banks. 2023: Depositors are withdrawing funds to invest in short-term securities. The banks don't have the assets to cover these deposits. SVB is the second largest bank failure in US history. It collapsed in less than 48 hours. And Summers wants us to believe that other banks aren't going to fail? Do other banks have the same problem as SVB, i.e., holding long-term investments that are now worth a fraction of what they were just a couple of years ago? Yes, they do. Let's say you have $100 that you owe to someone. And suddenly that $100 becomes worth $20. Now your creditor is demanding his $100 and you don't have it. And he starts telling everyone you're a deadbeat because you can't repay what you owe. Everyone starts to panic. We're all in a lot of trouble. Well, not rich people--our government will rush to bail them out. But the rest of us are unbelievably screwed.
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