Plus, last night at the Oscars, Hollywood liberals did what Hollywood liberals and liberals generally love to do. We'll examine that debate by speaking first to Matt Stoller tonight and then to David Sachs tomorrow. government intervention, not only Silicon Valley Bank but countless other regional banks would have failed quickly due to contagion, panic and other similar bank runs. And then on the other side, we have tomorrow night's guest, venture capitalist David Sacks, the first CEO of PayPal and a prominent venture capitalist who has been insisting that the problems at Silicon Valley Bank are not unique to that institution, but instead reflective of a systemic problem, and that without U.S. government first acted to save the country's richest people who caused the crisis while the middle class and working class were about to suffer. That move, surprisingly, has provoked a very vitriolic debate between people like, on the one hand, our guest tonight, Matt Stoller, of the American Economics Liberties Project, who insist that this is quite similar, if not in scope, then in kind, to the 2008 Wall Street bailout under the Bush and Obama administrations in which the U.S. government would ensure that all depositors would be made whole, no matter how much in excess of the $250,000 limit their balance was. Over the weekend, at the urging of some of the most prominent Silicon Valley venture capitalists, the Biden Treasury Department announced that the U.S. Late last week, the bank's depositors, composed of bold, wealthy tech investors, as well as startup companies with substantial venture capital, began getting somewhat nervous about the bank’s ability to cover deposits above the $250,000 level, the amount which the FDIC insures for every account and that worry very quickly – in a matter of fewer than two days – turned into full-blown panic and then a bank run that prevented the bank from even coming close to finding the liquidity to cover the mountain of withdraws and transfer requests that poured in from very panicky depositors.
That 40-year-old institution had become rather unstable of late as a result of rising interest rates that they failed to anticipate and invest in the kind of long-term, high-risk/high-reward vehicles responsible for the 2008 financial crisis, such as mortgage-backed securities. government took very aggressive action over the weekend to save the vast wealth of depositors at Silicon Valley Bank.
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