Can the Government Contain a Banking Crisis?

This podcast episode delves into the collapse of Silicon Valley Bank (SVB), analyzing the key factors that led to its downfall. The bank's heavy investment in long-duration bonds during a period of low interest rates proved disastrous when rates rose. This, coupled with the cooling of the tech economy, led to deposit withdrawals and a classic bank run. The crisis highlights the fragility of the banking system and the importance of effective risk management and oversight.