In case you missed it last Friday, there was a bank failure.
Not just any bank failure of course, but the 16th largest bank in the United States failure. Pretty much in the course of 24 hours.
I had vaguely heard of Silicon Valley Bank the way I had heard of other banks - I suppose at some point in time or space I saw an advertisement or even a branch - and then put it out of my mind. There are always banks, and I try to need them as seldom as possible.
By Friday evening, everyone had heard of Silicon Valley Bank.
Note that the bank did not just have a bank run and fail - it had a bank run and went into receivership on the cusp of failure on the same day (emphasis mine). One can only often seem to get the minimum amount of alacrity out of the State and Federal Government for many issues. The fact that they acted so quickly in this case is indicative of something.
From what I read, there are two real issues. The first is that most depositors (93 to 95%) had way over the FDIC $250K insurance limit in the bank, so there is a question of what if any money those depositors will get back - and this leads into the fact that this is tied up in companies that need that money to do business - you know, things like pay employees and pay bills. The second is that as of Friday, the money could not be accessed (although that may be completed now). Had a direct bill on Friday? Someone did not get paid (and likely, you now have a late fee to boot).
I am not a financial individual - but the speed of this is stunning to me (and we are fortunate there was a weekend to buffer all of this. Imagine if it happened on a Monday.). And it should be an instructive lesson - to me first, of course - that when the failure comes, it will not be the fanfare and panoply, but it will simple happen.
Or as the quote goes on how one goes bankrupt: Slowly at first, then all at once.