Silicon Valley Bank and the subsequent Signature Bank collapsed on Friday.
The Federal Reserve Treasury Department and FDIC scrambled over the past 48 hours to decide how to keep this bank run from spreading.
I watched Janet Yellen (Treasury Secretary) say almost nothing during an interview on Sunday. She answered questions without ever saying anything, which our elite government officials have become experts at. The one thing Yellen did say was the Government would not bail out Silicon Valley Bank. So, it should be no surprise that today they are doing just that.
This is yet another reminder of how fragile our system is. I would be surprised if this collapse does not ripple and take out more banks this week.
This morning the headlines are announcing "US Government moves to stop potential banking crisis".
After trying to find a buyer for the failed bank, the government assured all depositors could access their money.
This was the second largest bank failure in history. Yet many major news outlets are barely covering it. Let's hope the government can indeed contain this.
Whether they do or not, this only exasperates the fears of many. I know many of my clients both old clients and brand-new ones, have been worried about having too much money in the bank. This will only make more people look for alternatives such as gold and silver.
Gold, silver and platinum are all up this morning as investors look for safe places to park their money.