Bank run on Silicon Valley Bank
Daily reminder that bank runs wouldn't be a thing if we did duration matching, forbidding banks from borrowing short and lending long.<p>As always, the underlying problem in banking is that the banks are lying, telling two or more people they own the same dollar at the same point in time.  If they locked deposits for a period of time they could safely (and morally) loan that money out without lying, and, in fact, there wouldn't need to be a reserve ratio at all.<p>Demand deposits should cost a low service fee, since the money can't be safely lent.<p>Yes, I'm a lot of fun at parties, why do you ask?