Felt like someone kidnapped you on the way to the loo, wrapped your head with pure bubble gum, shook it violently and then pushed you off a cliff with no parachute.

First Silvergate, now SVB, Signature, SVC.

And now the entire state of the global economy is uncertain and tethering.

Nothing is safe anymore.

SBF, Silvergate, SVB, Signature, SVC… see a pattern?

They all start with “S”.

I’m kidding.

SVB had a bank run and its not funny at all.

It happened a while back, so it had time to marinate and people had time to digest a bit now.

Well, a couple of things I learnt reading all the comments on Reddit, Twitter, Facebook, LinkedIn, news sites and dozens of newsletters.

First: Twitter is really where you want to be for American news.

It updates faster than any other social media platform and it can provide second-by-second updates by critical players who have deep insights into the ever-evolving situation.

Its like live-action TV, only it is pure reality.

Second: Fear is way, way more powerful than any other emotion in the world.

It only takes a tiny spark to ignite a raging tornado of fear.

In SVB’s case, it was rumors mixed with fear-mongering and Tweet-guessing that ignited the bank run.

Third: We hate the feds, popo and authorities, but we all want them to save us when the world is ending.

During peacetime, we mock and chide the authorities.

But when the barbarians are at the gates and trouble looms, we call upon the same authorities and feds for help.

Remember Winston Churchill?

For good or for bad, he did lead an embattled nation through some of their darkest days.

And when the war is over, guess what they did?

They quietly removed him.

Guess the war is over and its peace time.

They didn’t think they needed a war-time general anymore.

Final thoughts:

A bank run helps no one.

If an institution as old and as established as SVB can go down, nothing is safe.

At that point, you have to really consider what options you have.

Do you fight for your stakeholders and self-interest and remove your funds as quickly as possible, thus contributing to the bank run further?

Or do you stay put and hope that when everyone does the same, the bank will somehow float and the storm will pass?

Game theory my friends.

It never ends well.

And if history has proven anything, when the stakes are high and apocalypse is imminent, it is every man for himself.

Our concern for our own self-interest rarely extends beyond our line of sight.

Sure, we can love and care deeply about society and others in general, but when the chips are down and you own safety and security is at stake, it is hard to do otherwise.

It is hard to be the bigger man when you know being the smaller man will ensure your survivability.

There is no nobility in being dead from something you knew you could have done something about.

Your stakeholders will never forgive you.

You won’t be able to sleep at night.

So again, a bank run or even the possibility of one, is good for no one.

In this case, the good news is that the government can often intervene and take necessary steps to restore order.

The bad news is that it takes a lot of trust from citizens for governments to do their job successfully.

It is up to us as citizens to be smart about our decisions, think long-term, and act responsibly.

It’s amazing how something as seemingly innocuous as a bank run can cause so havoc in an economy.

In this case, the feds swiftly came in to backstop it all.

Ultimately, it is our duty as citizens to help ensure that governments are able to properly manage the economy and keep order in society.

We cannot trust blindly; we must be informed and stay vigilant.

That is how we can create a better future for everyone.

I learnt that it is really not easy to be the government and feds.

Nothing you do is really right or wrong, and everything you do will piss somebody off somewhere.

-

Will the global economy get better?

-

#startups #business #startupx #growth #success #socialmedia #culture #entrepreneurship #strategy #eth #btc #crypto #feds #globaleconomy #bankrun #svb #crazytimes #interestrates #economy

Felt like someone kidnapped you on the way to the loo, wrapped your head with pure bubble gum, shook it violently and then pushed you off a cliff with no parachute.

First Silvergate, now SVB, Signature, SVC.

And now the entire state of the global economy is uncertain and tethering.

Nothing is safe anymore.

SBF, Silvergate, SVB, Signature, SVC… see a pattern?

They all start with “S”.

I’m kidding.

SVB had a bank run and its not funny at all.

It happened a while back, so it had time to marinate and people had time to digest a bit now.

Well, a couple of things I learnt reading all the comments on Reddit, Twitter, Facebook, LinkedIn, news sites and dozens of newsletters.

First: Twitter is really where you want to be for American news.

It updates faster than any other social media platform and it can provide second-by-second updates by critical players who have deep insights into the ever-evolving situation.

Its like live-action TV, only it is pure reality.

Second: Fear is way, way more powerful than any other emotion in the world.

It only takes a tiny spark to ignite a raging tornado of fear.

In SVB’s case, it was rumors mixed with fear-mongering and Tweet-guessing that ignited the bank run.

Third: We hate the feds, popo and authorities, but we all want them to save us when the world is ending.

During peacetime, we mock and chide the authorities.

But when the barbarians are at the gates and trouble looms, we call upon the same authorities and feds for help.

Remember Winston Churchill?

For good or for bad, he did lead an embattled nation through some of their darkest days.

And when the war is over, guess what they did?

They quietly removed him.

Guess the war is over and its peace time.

They didn’t think they needed a war-time general anymore.

Final thoughts:

A bank run helps no one.

If an institution as old and as established as SVB can go down, nothing is safe.

At that point, you have to really consider what options you have.

Do you fight for your stakeholders and self-interest and remove your funds as quickly as possible, thus contributing to the bank run further?

Or do you stay put and hope that when everyone does the same, the bank will somehow float and the storm will pass?

Game theory my friends.

It never ends well.

And if history has proven anything, when the stakes are high and apocalypse is imminent, it is every man for himself.

Our concern for our own self-interest rarely extends beyond our line of sight.

Sure, we can love and care deeply about society and others in general, but when the chips are down and you own safety and security is at stake, it is hard to do otherwise.

It is hard to be the bigger man when you know being the smaller man will ensure your survivability.

There is no nobility in being dead from something you knew you could have done something about.

Your stakeholders will never forgive you.

You won’t be able to sleep at night.

So again, a bank run or even the possibility of one, is good for no one.

In this case, the good news is that the government can often intervene and take necessary steps to restore order.

The bad news is that it takes a lot of trust from citizens for governments to do their job successfully.

It is up to us as citizens to be smart about our decisions, think long-term, and act responsibly.

It’s amazing how something as seemingly innocuous as a bank run can cause so havoc in an economy.

In this case, the feds swiftly came in to backstop it all.

Ultimately, it is our duty as citizens to help ensure that governments are able to properly manage the economy and keep order in society.

We cannot trust blindly; we must be informed and stay vigilant.

That is how we can create a better future for everyone.

I learnt that it is really not easy to be the government and feds.

Nothing you do is really right or wrong, and everything you do will piss somebody off somewhere.

-

Will the global economy get better?

-

#startups #business #startupx #growth #success #socialmedia #culture #entrepreneurship #strategy #eth #btc #crypto #feds #globaleconomy #bankrun #svb #crazytimes #interestrates #economy