[tyre]

Yes, this is essentially correct. Every few months the idea of narrow banking is re-discovered and presented as a magic cure-all.

What played out over the past week was all fine. The FDIC and Treasury worked.

The contagion was the VCs freaking everyone out. It was a bad week for “leaders in tech” fomenting FUD when they could have been calming the situation down.

SVB had safe assets. They mismanaged interest risk. The government stepped in. It’s fine.

Thank god for centralized financial systems.