David Sacks says there are two tier systems of banks

David Sacks has said:

The Fed may or may not realize it but it has created a two-tier banking system:

1. Tier 1: Systemically Important Banks. These are the "too big to fail" biggest banks. If you have money there, it's a true deposit. You can't lose it.

2. Tier 2: Everyone Else. If you have money there, it's not a true deposit. It's an unsecured loan to that bank. You can lose it in a bank failure.

Now tell me, why would anyone use Tier 2?

Silicon Valley Bank crashed on Friday.

Today, Michael Burry has said 2000, 2008, 2023... people full of hubris and greed take stupid risks and fail. Money is then printed. Because it works so well.

he Treasury says it sees some institutions with issues similar to Silicon Valley Bank, per Bloomberg.

Additionally a US Treasury official says this situation is not 2008 and firms are not being bailed out.

Today, Federal Reserve announces new emergency bank term funding program.

The Federal Reserve board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors.

Read more: https://unusualwhales.com/news/the-treasury-says-it-sees-some-institutions-with-issues-similar-to-silicon-valley-bank