[varunjain99]

I don't think this will be anywhere close to 2008.

In many ways, SVB was a perfect storm of many factors. High uninsured deposits. Few, tech-savvy despositors. Bad investment choices w.r.t. interest rates. Makes sense why a run was possible.

Other smaller banks - while they may even have similar investment choices - are likely to have many depositors who are under the FDIC limit. So... rationally... they shouldn't call in their money. But also practically, it seems unlikely the masses will be able to effectively coordinate.

I think, however, that this will start a slow long-term erosion of many community banks. How it affects a short-term recession that's looming is hard for anyone to predict. If you're in the camp that the Fed is being too aggressive, maybe this actually slows down interest rate hikes... which might end up being a good thing!

All in all, fundamentals of banks just aren't as bad as '08.

[bbunix]

Multiplied by VC/tech driven by a herd mentality at the speed of light.

[throwayyy479087]

Groupchats likely caused the failure of SVB. Allowed for a lightning run.