Though people are comparing it to the 2008 financial crisis, There is a critical difference. The 2008 crisis was due to the crash of the American housing market. Banks had lent a sleuth of irresponsible housing loans To people and companies who could not afford to repay it. So the housing market crashed And a global recession followed. After this several strong regulations have been imposed, New laws have been enacted So that it doesn’t happen again.
Experts believe that in the current situation Matters will not get as bad, Because SVB served customers largely of a specific sector. There might be an impact on those startups, But a global financial crisis would be unlikely.
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