Pod Save America "Too Woke To Fail.”
Mar 14, 2023
Senator Cory Booker, a progressive voice from New Jersey known for his advocacy on criminal justice reform and veganism, joins the conversation. He discusses the fallout from the Silicon Valley Bank collapse and the absurdity of linking its failure to 'woke culture.' The senator also shares his delight in innovative vegan foods and emphasizes the importance of responsible dietary choices. Additionally, amid serious topics, there's a lighthearted exploration of unique vegan fast food options, making for a dynamic blend of politics and culinary fun.
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SVB's Rise and Fall
- Silicon Valley Bank (SVB) catered to tech startups and experienced rapid deposit growth during favorable economic conditions.
- They invested heavily in long-term bonds, which declined in value when the Fed raised interest rates.
Liquidity vs. Solvency
- SVB's failure stemmed from a liquidity crisis, not a solvency crisis, unlike the 2008 financial crisis.
- Their assets were tied up in long-term bonds, making them inaccessible when depositors demanded their money back.
The Group Chat that Broke the Bank
- A group chat among Silicon Valley elites, including Peter Thiel, fueled the SVB bank run.
- They advised their portfolio companies to withdraw their funds immediately, accelerating the crisis.