Silicon Valley Bank collapsed 32 months ago. Signature Bank followed two days later. First Republic fell 50 days after that. Yet 28 years ago today, Thailand showed us exactly how bank runs spread.
November 25, 1997: Thailand closes 56 finance companies in one day.
The scene outside Bangkok banks was chaos. Teachers, shop owners, factory workers pressed against locked doors. One woman fainted in the heat, clutching her bankbook. Her daughter's wedding money was inside. Twenty years of saving, inaccessible.
What started as property speculation became systemic failure. Thai developers borrowed dollars to build condos. When the baht crashed, a $10 million loan became $20 million overnight. Banks that looked solid Monday morning were insolvent by Friday afternoon.
The 2023 Parallel That Nobody's Connecting:
Silicon Valley Bank: March 10, 2023. Gone in 36 hours. Signature Bank: March 12, 2023. Failed the same weekend. First Republic: May 1, 2023. JPMorgan takes over.
Combined: Three banks. Eight weeks. Over 90% of deposits uninsured.
SVB had $172 billion in deposits. 89% exceeded FDIC limits. When they sold bonds to raise cash, the losses from rising rates triggered panic. Roku had $487 million there. Circle had $3.3 billion. Thousands of startups couldn't make payroll Friday afternoon.
The Fed and Treasury did something unprecedented: lifted the $250,000 cap. All depositors got their money Monday morning. But that weekend? Pure terror for anyone with more than $250K in one bank.
The Brutal Math of Concentration: • SVB: 89% of deposits over FDIC limits • Signature: 90% uninsured • Rising rates crushed their bond portfolios • Bank run speed: Digital banking made it instantaneous
Thailand's crisis took months to spread. SVB's took hours. One Peter Thiel tweet started the stampede. $42 billion withdrawn in one day. The fastest bank run in history.
💼 What This Means for Your Wallet:
Yes, the government backstopped SVB depositors. This time. But those 48 hours of uncertainty destroyed companies and careers. The lesson isn't that you'll lose everything. It's that even temporary loss of access can be catastrophic.
Your modern playbook: • Personal: Multiple banks, stay under $250K per bank • Business: Operating capital at 3+ banks, period • Payroll reserves: Two months minimum, different bank • Watch the bond portfolio: Banks holding long-term bonds at losses are vulnerable
The Thai citizens who diversified survived 1997. The Silicon Valley companies with multiple banking relationships survived March 2023. Everyone else spent a weekend wondering if their business would exist Monday.
The expensive truth: "Exceptional authority" only comes after the panic. By then, the damage is done.
What concentration risk are you eliminating today?
Note: Featured image is an AI-generated historical illustration, not a period photograph.
Inspired Money
Silicon Valley Bank collapsed 32 months ago. Signature Bank followed two days later. First Republic fell 50 days after that. Yet 28 years ago today, Thailand showed us exactly how bank runs spread.
November 25, 1997: Thailand closes 56 finance companies in one day.
The scene outside Bangkok banks was chaos. Teachers, shop owners, factory workers pressed against locked doors. One woman fainted in the heat, clutching her bankbook. Her daughter's wedding money was inside. Twenty years of saving, inaccessible.
What started as property speculation became systemic failure. Thai developers borrowed dollars to build condos. When the baht crashed, a $10 million loan became $20 million overnight. Banks that looked solid Monday morning were insolvent by Friday afternoon.
The 2023 Parallel That Nobody's Connecting:
Silicon Valley Bank: March 10, 2023. Gone in 36 hours.
Signature Bank: March 12, 2023. Failed the same weekend.
First Republic: May 1, 2023. JPMorgan takes over.
Combined: Three banks. Eight weeks. Over 90% of deposits uninsured.
SVB had $172 billion in deposits. 89% exceeded FDIC limits. When they sold bonds to raise cash, the losses from rising rates triggered panic. Roku had $487 million there. Circle had $3.3 billion. Thousands of startups couldn't make payroll Friday afternoon.
The Fed and Treasury did something unprecedented: lifted the $250,000 cap. All depositors got their money Monday morning. But that weekend? Pure terror for anyone with more than $250K in one bank.
The Brutal Math of Concentration:
• SVB: 89% of deposits over FDIC limits
• Signature: 90% uninsured
• Rising rates crushed their bond portfolios
• Bank run speed: Digital banking made it instantaneous
Thailand's crisis took months to spread. SVB's took hours. One Peter Thiel tweet started the stampede. $42 billion withdrawn in one day. The fastest bank run in history.
💼 What This Means for Your Wallet:
Yes, the government backstopped SVB depositors. This time. But those 48 hours of uncertainty destroyed companies and careers. The lesson isn't that you'll lose everything. It's that even temporary loss of access can be catastrophic.
Your modern playbook:
• Personal: Multiple banks, stay under $250K per bank
• Business: Operating capital at 3+ banks, period
• Payroll reserves: Two months minimum, different bank
• Watch the bond portfolio: Banks holding long-term bonds at losses are vulnerable
The Thai citizens who diversified survived 1997. The Silicon Valley companies with multiple banking relationships survived March 2023. Everyone else spent a weekend wondering if their business would exist Monday.
The expensive truth: "Exceptional authority" only comes after the panic. By then, the damage is done.
What concentration risk are you eliminating today?
Note: Featured image is an AI-generated historical illustration, not a period photograph.
1 week ago | [YT] | 3