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WTH is Going On with Silicon Valley Bank? Michael Strain on how Federal Policy Helped Cause the Disaster
Before Friday, Silicon Valley Bank was the sixteenth largest bank in America. Now it bears the standard of being the second largest bank failure in US history, only upstaged by the 2008 financial crisis. As the initial shock – both to the market and to news headlines – is wearing off, some things are clear: SVB was badly run, had mismanaged its asset investments, and as a truly silicon valley-centric bank, had an un-diversified portfolio tied to tech start-ups, crypto, and its California clientele. But the real catalyst? A long year of the Biden administration’s failure to combat inflation…
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