Signature, SVB, Silvergate and Silicon Valley Bank these banks all had one major thing in common. They mostly dealt with startups/venture capitals and held vast amounts over the FDIC insured limit of $250,000 per bank.
Since banks are only required to hold a small portion of the money as liquid funds while the rest gets loaned out if a vast majority of people try and cash out at the same time (Otherwise known as a bank run) that bank won't have enough liquid cash to pay everyone out. Idk about you but this is sounding more and more like a Ponzi scheme to me and makes you wonder why the government and banks are allowed to do it but you as an every day civ are not allowed...
In order to try and stem this the FDIC took over a majority of these banks and then got massive injections of money into them. Thus another government bailout like we saw in 2008. This time however they wanted to go on record and say this is not tax payers money and is not coming at a cost to tax payers. uhhhh where the F is the money coming from then? It's coming from tax payers... Yes you and me are once again bailing out these clowns and we have no say in it. After this article you'll see why I'm less and less FIAT and more and more on the side of crypto.
First Republic bank also got a bailout around this time, in fact they ended up getting two already and once again they are in the headlines again. The banks in trouble yet again and apparently funds from other banks is not cutting it to keep the afloat. Double down it seems like the government has learned it's lesson (I hope) that it shouldn't be bailing out these banks and that perhaps some new regulations on BANKS needs to be in place such as holding more cash reserves to be able to cover peoples deposits. While this would grind things down I have a feeling that grinding things slower in the banking sector is far better then this continued crash and bailout that keeps happening and people are utterly sick of. So much so that the USD is becoming less and less valued on MANY fronts and not just here at home. It personally makes me think a bull run on crypto is close at hand and instead of the SEC attacking it they better buck up and be on the forefront of it or end up losing A LOT.
Inflation and Interest rates
With all of this happening we are seeing a SHARP decline in buying and the GDP of America being crushed at the moment at a whopping 1.1% (That's not great compared to other countries) This also means that the Feds interest rate hikes might come to a end or be only 25 points.
What I don't think we will see now is a high inflation if the Fed stop and that's mainly because of everything else currently going on which brings new angles and issues against the USD compared to other times. There's never a one size fits all. However it also sparks concerns of what is known at "Stagflation" This is when inflation regains high as the economy stays flat.
Debt
In just a month the USA will be coming up on the debt issue once again. Defaulting on this debt would have major reproductions on the USD which is not another hit the USD can afford to make right now. At the moment the two parties are Democrats wanting to spend more money and increase the debt ceiling while republicans want to cut spending. Of course this flip flops constantly but I think as Americans we need to start holding those elected no matter what party they are on that we in fact need to cut spending on dumb stupid shiz and stop increasing the debt. The chances of this however are low and that's why I'm personally banking more heavily in crypto, silver and gold along with other assets and less and less on the USD.
Overall I think there are some drastic things people need to start demanding of their government which I think we can all agree on and to stop creating divides between ourselves and instead unit and make the government realize they work for us. This constant splitting between people and complaining are a major cancer in our world today that is constantly having major issues for all of us.
Will the USD fail?
No, it could weaken a bit for sure and have alternatives but that's healthy business and exactly how the government operates anymore. That competition should spark some new strengths and works I would hope from our government rolling forward.
Will another bank bite the dust?
It's very possible and most are looking to see what happens with this bank to figure out what's going to happen next. Will other banks step in and save the bank? Will the government step in (doubtful this time) or will this spark a major exodus from all banks or consolidate some of the large banks to have more control and less competition. Time will tell and it will be interesting to watch.