Introduction

Brian Harn is a senior equity analyst at Morningstar. He has written a report focusing on the lessons learned from the Silicon Valley Bank failure. The bank borrows short from its depositors and then lending long to investments that take time to generate returns. But borrowing short lending long can literally break a bank with implications for jobs and the economy. A falling stock price, painful as it may be for shareholders, has no real consequences in the real world. As long as the company delivers adequate returns on the investment over time, the stock price will eventually reflect the intrinsic value of that company.