Check out JP's new video about the collapse of Silicon Valley Bank (“Bank Collapse for Dummies”). It's brilliant.
In short, the banks needed to make more money to avoid collapsing, so they reached out to their investors. The investors, understanding the economy, pulled out, causing the bank to collapse. Now the government is using its “reserve” funds to bail them out. Silicon Valley Bank often offered large loans to start-ups in the Silicon Valley.
Watch