5min chapter

Swan Signal Live - A Bitcoin Show cover image

Dylan LeClair & Joe Consorti | Bank Runs, Bitcoin, and Self-Custody | Swan Signal E100

Swan Signal Live - A Bitcoin Show

CHAPTER

Is This a Bailout?

The Fed has been so successful this cycle in what it intends to do, which is wind down its balance sheet and remove bank reserves from the system while hiking rate. But with emergency actions yesterday, that in my opinion didn't need to happen. It's essentially a bailout because you're introducing new value into the system where there wasn't any value before. If Silicon Valley Bank defaulted on their loan book as the 18th largest bank with an extremely small amount of loans outstanding, I don't think that would have been systemically disruptive.

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