Episode 319: The Death of Silicon Valley Bank
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The Shadow Banking Market
SVB was the darling of its world, right? There was a congratulations society around this bank. And here we are a week later and there's no money left. The economist in me, when I take off the trader hat and put on the economist hat, time and resources are limited. For years, we've heard about this terrifying thing called the shadow banking market. This is exactly why the shadow bankingMarket exists because you have companies like Tesla and Apple and Facebook who don't want to open accounts with more than $249,999 each. They go to Bank of New York and they get into the repo markets. In that way, their money is protected and they're earning a return
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