"Most community banks aren't in a similar situation though. This is mostly caused by panic, not reality."
Nothing prevents panic from overriding reality at other banks.
Of course, but the underlying books aren't the same, the SVB problem was fairly unique. Once the panic is over, most all other regional banks will be fine. The only way they will fail is if the mob creates additional panic for either a false perception or a political gain (bailout.) That's basically what happened on Friday.
Isn't the fact that people are panicking part of the reality of the situation? Or do we exclude human behaviour from financial calculations. Am I stupid for predicting other people will panic?
