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Contagion: Chain Reactions and the CoCo Powder Keg
Many Happy Returns
Bankruptcy Is a Confidence Trick, Right?
Some contagion happens for completely irrational reasons. You get this kind of hurting behavior where investor confidence goes and then they're looking around for what else do I need to sell? What's going to be next? Some people say that Silicon Valley Bank was because it had a very similar deposit base, which would have pulled out the deposits at the same time. But I think this is ultimately a little bit like Prisma's dilemma. If you're the first person to pull out your money, then it is in your interests because you'll be okay when everyone else won't be. That's why we said banking is a confidence trick, right? Because there isn't enough money there for everyone.
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