What's Happened to Central Banks?

Silicon Valley Bank's business model was tuned to zero interest rates. They were heavily exposed to the tech industry because of where they were located. And those tech companies got absolutely hosed by interest rates rising very, very quickly. The only way that banks can get round this is by screwing their depositors. So if they don't raise their deposit rates, they can sort of offset the losses happening in other parts of the balance sheet. But because interest rates are now so high, people have got this incentive to take their money out of the banks and put them into government bonds or things like that. It's a mini run.