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The End of Silicon Valley (Bank) – Stratechery by Ben Thompson

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Silicon Valley Bank bears responsibility for its demise, but it symbolizes a Silicon Valley reality that is very different from the myth — and the ultimate cause is tech itself.

The End of Silicon Valley (Bank) – Stratechery by Ben Thompson Skip to content The End of Silicon Valley (Bank) Monday, March 13, 2023 Banks are, at their core, facilitators: depositors lend their money to a bank, for which they are paid interest, and banks lend that money out, again for interest. A bank is profitable if the interest rate they charge for loans is greater than the interest rate they pay to depositors. Banks achieve this by leveraging time: depositors earn a lower interest rate in exchange for being able to withdraw their money at any time; loans earn higher interest rates

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