CGTN: The most stunning, and shocking, aspect of the current crisis is the speed at which the banks fell. At the Silicon Valley Bank – $42 billion were withdrawn within 24 hours! Are Americans losing trust in the banking system?
Richard Turrin: This is the most important thing for people to understand. The nature of a bank run has fundamentally changed. What we saw at Silicon Valley Bank is the first true digital bank run. Now, let me explain why. The first part of the digital component was that social media was part of the bank run. People became hysterical and panicked over a Silicon Valley Bank, partially through Twitter and other social media apps. So, we haven’t had that before. That’s something very, very new.
The second crucial part is that we saw this massive, as you said, $42 billion move within 24 hours. That’s half a million dollars a second. So, when we think of bank runs in the old movies, we think about people standing in line, waiting to get cash from their bank. Now we have Twitter causing the panic. And we have people who are connected to the bank digitally that can move their money in a heartbeat.
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