Hacker News Reader

Banks don’t have nearly as many worthless assets today as they did in 2008, which completely changes the underlying economics.

As long as they aren’t offering higher returns than their existing investments can support, the only thing they have to fear is bank runs.

View on HN

SVB also did not have "worthless assets", but the extreme rate hikes by the Fed significantly reduced its value. Wait until tightness of credit conditions will cause chain of defaults and we will see how well banks will fare. We already see the first signs of it in the auto loans market.

SVB was offering both extremely high interest rates and suffered a bank run.

Thus they both really messed up and happened to get punished, but it really doesn’t reflect the wider banking system.

Reply on news.ycombinator.com