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A comment on Yellen says government will help SVB depositors but rules out bailout. Parent comment

Re:Yellen says government will help SVB depositors but rules... by paulpauper on Sunday March 12, 2023 @12:42PM (#35122382)
Because of secondary effects. It's not like SVB failure is limited to just depositors and start-ups. It ripples throughout entire economy, which means way more damage than just the nominal amount lost.
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Re:Yellen says government will help SVB depositors but rules... by oska on Sunday March 12, 2023 @02:04PM (#35123737)
You need failures to 'ripple through the economy'

Removing these ripples brings greater risk, which is artificial stability and moral hazard

And taking your analogy further, show me one body of water in nature that doesn't have ripples and waves on its surface (that vary in magnitude)

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