Since everyone on Reddit seems to be an expert on the great SVB crisis now. I think I should throw in my hat as an expert too because I have done two days worth of voracious reading within five minutes.
Root cause: they did some dumb stuff with long duration MBS and then sold at a loss. People found out and had a run on the bank.
Solution: government or J P Morgan step in and provide liquidity.
Long term solution: don't do dumb stuff like long duration MBS with short term liquidity demands.
This is my SVB ted talk. Have a nice day.
50 more SVB posts coming up soon by my fellow redditos. Stay tuned.
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