Part 2/11:
Musk suggests that the collapse of SVB could be just the beginning of a broader financial upheaval. Bill Ackman, a renowned billionaire investor, warns that unless the Federal Deposit Insurance Corporation (FDIC) steps in with a system-wide guarantee, we could witness bank runs across many financial institutions come Monday. Despite the FDIC having only $124.5 billion on its balance sheet and a $100 billion line of credit—both seemingly sizeable—these figures are tiny compared to the over $22 trillion in deposits across the U.S. banking system. This disparity underscores how ill-prepared the financial safety net is to handle a large-scale crisis, covering only about 1.26% of total deposits.