Depositor Dynamics
The notion of "sleepy" depositors is challenged, revealing that many are actually quite active, especially in the face of potential losses. With a staggering 97% of Silicon Valley Bank's depositors being uninsured, a swift mass withdrawal occurred, highlighting the risks associated with concentrated uninsured deposits. As interest rates rise, the transaction costs of moving money diminish, prompting depositors to react quickly when their funds are threatened.In this clip
From this podcast
All Else Equal: Making Better Decisions
Ep23 “When Banking Fails” with Amit Seru
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