Strap in for another roller-coaster week on Mr. Powell’s Wild Ride, as we wonder whether our banking system is in a crisis. It does appear from this chart, however, that Silicon Valley Bank was an outlier for having such a high proportion of deposits above the FDIC insurance limit (that the Biden Administration has effectively blown up). And this chart is possibly misleading—while SVB was the 15th largest bank in the country, it is difficult to imagine a run on the much larger Citibank, but I suppose crazier things have happened. Especially when you see the trend in the second chart here.
And this doesn’t look good:
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