.@DavidSacks tells @jimmy_dore that the combination of unrealized losses in long-dated bonds, the overall tightening of the money supply, and the WSJ reporting on Thursday that SVB needed to raise billions of dollars led to the bank run:
“SVB all of a sudden announces, hey, we need to raise billions of dollars, and that was reported by the WSJ on Thursday morning, and that’s what led to the run on the bank because everyone started wondering if they were going to be insolvent or not.
You know, when you read in the WSJ that your bank might need to raise billions of dollars because it doesn’t have enough capital, it has all these unrealized losses, and how they have to realize them, any normal person would try to take their money out if it doesn’t cost them anything to do so, and that’s why you had a run on the bank.”
donshafi911 