A lesson in how media (and perhaps society) works
Mar 9 to Mar 16: Silicon Valley Bank Collapse and the blame game
Good morning! Tired of biased news and information overload? The Clarity Substack is here to cut through the noise and give you a clear view of the world. Our anti-filter approach brings together polarized and fragmented landscapes, so you can see the bigger picture without the confusion.
Here’s what we’ve got in store:
Silicon Valley Bank Collapse: a lesson in how media works
Find your blindspot: A new way to scan topics and see what you’ve missed
The divide: How the biggest partisan leaning outlets exhibit the Streetlight Effect
Silicon Valley Bank Collapse: a lesson in how media works
Summary by Clarity AI: On March 10, 2023, multiple news outlets reported that Silicon Valley Bank was experiencing difficulties, which caused a sharp drop in the value of many banks globally. The situation escalated rapidly, and by March 11, SVB had collapsed, marking the second-largest bank failure in U.S. history. The collapse triggered concerns about broader financial contagion and prompted U.S. regulators to take action to protect deposits. The fallout from the SVB collapse continued to dominate headlines throughout the week of March 12, with lawmakers, economists, and journalists analyzing its causes and effects. By March 13, the focus had shifted to the aftermath of the collapse, with reports of investigations, accountability, and potential bankruptcies.
The narratives arose after the Fed announced Sunday that they would protect deposits for SVB. Here are some of the biggest ones:
Blaming the bank’s “woke” agenda
Right
Silicon Valley Bank’s woke agenda thrived while managers ignored investment risks
Silicon Valley Bank went 'woke' rather than focus on its shareholders, Home Depot co-founder says
Left
No, “wokeness” did not cause Silicon Valley Bank’s collapse. Here’s a fact check
We know why SVB failed, and it has nothing to do with diversity
The CEO and bankers are incompetent and immoral
Silicon Valley Bank collapse: CEO cashed out millions while employees got bonuses
CEO Was There for SVB’s Quick Rise, Even Quicker Fall
'Mr. Wonderful' rips 'idiot' bankers: Feds' SVB response 'nationalized' the system
Newsom was compromised
Newsom failed to disclose personal ties to bank after praising intervention
Report: Newsom held multiple accounts at Silicon Valley Bank while pushing for bailout
Biden’s decision is giving the government even more control
Biden’s ‘bailout’ a step toward government control of banking system, economists say
Biden's banking busts include this single biggest monetary policy mistake in half a century
The contagion is going to continue to spread
Warning that US banks face more pain
Investor Anxiety Hits Fever Pitch After SVB Collapse
Narratives are born out of uncertainty, confusion, and a lack of solutions and are incentivized by the attention economy
To cut through the noise, it’s really important to show it. These narratives are mostly noise and panic. It really seems like no person or organization wanted this to happen - much like the 2008 financial recession. It’s bad for banks, investors, businesses, employees, and US debt (which will affect everyone). Assuming that everything that happened at SVB was legal (there’s no reason at this point to think it wasn’t), the only things that can prevent future collapses are regulatory in nature and the lingering immune response of the banking sector.
Find your blindspot
Clarity clusters topics over the week across the most popular outlets and ranks them for you, based on aggregated front-page attention. This way, you don’t miss anything important.
What did you miss? Leave a comment and start a discussion!
You can see these topics (updated daily) anytime on Clarity by toggling “Scan Topics”.
The divide
It's difficult to understand how the media you consume is shaping your perspective. We’re all swimming in our own, personalized filter bubbles, and often only see information that confirms our existing beliefs and opinions.
This phenomenon is exaggerated by the streetlight effect. Different news outlets shine a light on different aspects of reality, and it's easy to get caught up in one perspective without seeing the full picture. This can lead to a distorted understanding of events and issues.
60% of Republicans turn to Fox News for political news and 53% of Democrats turn to CNN1. This means that a large portion of the country is being pushed two different versions of the world. Take a look at a bird’s eye view of partisan media:
That’s it for this week. To see a full rundown of the biggest stories of the week, along with a detailed analysis of how they are being covered by the various tribal factions, check out useclarity.com. And if you’re curious, here’s how it works.
Appendix
Evolving headlines from the SVB Collapse
2023-03-10
WSJ: Banks Lose Billions in Value After Tech Lender Stumbles
REUTERS: Europe's banks sucked into global rout as high rates reality hits home
NYTIMES: A run on a Silicon Valley bank sent global markets tumbling amid worries about the U.S. banking system.
BBC: Financial shares hit by Silicon Valley Bank slump
2023-03-11
WASHINGTONPOST: Silicon Valley Bank failure raises fear of broader financial contagion
NYTIMES: Silicon Valley Bank Fails, Raising Concerns for Investors Elsewhere
CNN: Takeaways from America's second-largest bank failure
NYPOST: Silicon Valley Bank shut down by regulators in stunning collapse as fears of contagion persist
WSJ: Silicon Valley Bank Collapses Following Run on Deposits
REUTERS: Silicon Valley Bank is largest failure since financial crisis, billions stranded, article with video
NBCNEWS: Silicon Valley Bank shuts down in biggest banking collapse since 2008 crisis
BBC: US bank taken over in biggest failure since 2008
FOXNEWS: Jim Cramer eviscerated for touting SVB weeks before devastating collapse
THEBLAZE: Silicon Valley Bank collapses, marking second-largest bank failure in US history
WASHINGTONTIMES: Silicon Valley Bank is seized by U.S. after historic failure
WASHINGTONEXAMINER: What was the Silicon Valley Bank and why did it fail?
MSNBC: Silicon Valley Bank shut down by regulators, FDIC
2023-03-12
REUTERS: Silicon Valley Bank's demise began with downgrade threat , article with gallery
FOXNEWS: Home Depot co-founder slams ‘woke’ Silicon Valley Bank collapse, warns Americans
WASHINGTONTIMES: Silicon Valley Bank collapse, rise of ‘woke’ financial sector spark fear of major economic crisis
NBCNEWS: Treasury says it will back Silicon Valley Bank deposits
NYTIMES: Regulators Close Second Bank and Move to Protect Deposits
WSJ: SVB Depositors to Get Their Money as Part of Fed’s Plan
CNN: US regulators bail out SVB customers as second bank fails
WASHINGTONPOST: U.S. says ‘all’ deposits at failed bank will be available Monday
NYPOST: While Silicon Valley Bank collapsed, top executive pushed 'woke' programs
BBC: Offer made for UK arm of failed US Bank
WASHINGTONEXAMINER: Silicon Valley Bank collapse: CEO cashed out millions while employees got bonuses
THEBLAZE: Silicon Valley Bank went 'woke' rather than focus on its shareholders, Home Depot co-founder says
MSNBC: U.S. regulators have 'serious questions' about collapse of Silicon Valley Bank
2023-03-13
WSJ: CEO Was There for SVB’s Quick Rise, Even Quicker Fall
REUTERS: After SVB failure, US acts to shore up banking system confidence, article with video
WASHINGTONTIMES: Lawmakers grilled Fed chair about plan to raise bank capital rules just before SVB collapse
NBCNEWS: U.S. moves to protect all deposits at Silicon Valley Bank in bid to stem wider fallout
NYTIMES: U.S. Steps In to Protect All Deposits at Silicon Valley Bank
CNN: How Silicon Valley Bank collapsed in 48 hours
WASHINGTONPOST: Biden seeks to calm Americans after government intervenes in SVB collapse
WASHINGTONEXAMINER: SVB collapse condemns Biden and Trump fiscal mismanagement
MSNBC: The Silicon Valley Bank collapse could be a big win for Big Tech
NYPOST: Regulators close Signature Bank, second shuttered by feds after SVB disaster
THEBLAZE: Glenn explains: This is how SVB collapsed
BBC: Money in failed US bank is safe, government says
FOXNEWS: LIVE UPDATES: Biden to speak on massive SVB collapse and Fed's response
2023-03-14
WASHINGTONTIMES: Biden’s ‘bailout’ a step toward government control of banking system, economists say
WSJ: Investor Anxiety Hits Fever Pitch After SVB Collapse
WASHINGTONEXAMINER: Sorting fact from fiction in Silicon Valley Bank blame game
REUTERS: SVB shockwaves pound global bank stocks gripped by contagion fears, article with gallery
WASHINGTONPOST: Washington’s bank rescue fails to erase all doubts
CNN: America's biggest problem is its politics, not its banks
NBCNEWS: DOJ and SEC launch probes into Silicon Valley Bank after collapse
NYTIMES: U.S. Is Said to Open Investigation Into Silicon Valley Bank Collapse
MSNBC: The right's ridiculous explanation for Silicon Valley Bank's collapse
BBC: Warning that US banks face more pain
THEBLAZE: Glenn: Be ‘healthily’ TERRIFIED of the coming banking CHAOS
FOXNEWS: Here's who benefited from Silicon Valley Bank executive, PAC donations before collapse
NYPOST: Silicon Valley bank collapse
2023-03-15
WASHINGTONPOST: The 72-hour scramble to save the U.S. from a banking crisis
CNN: Ex-Goldman Sachs CEO: 'Laughable' that SVB failed because of diversity
WSJ: How Goldman Sachs’s Plan to Shore Up SVB Crumbled
THEBLAZE: Newsom hailed the Silicon Valley Bank bailout, but did not point out his own business with the institution: Report
NYTIMES: Inside the Collapse of Silicon Valley Bank
NBCNEWS: White House eyes accountability for Silicon Valley Bank collapse
REUTERS: Exclusive: SVB Financial explores bankruptcy as option for asset sales, article with image
NYPOST: Silicon Valley bank collapse
FOXNEWS: 'Mr. Wonderful' rips 'idiot' bankers: Feds' SVB response 'nationalized' the system
WASHINGTONEXAMINER: Newsom failed to disclose personal ties to bank after praising intervention
MSNBC: We know why SVB failed, and it has nothing to do with diversity
WASHINGTONTIMES: Report: Newsom held multiple accounts at Silicon Valley Bank while pushing for bailout
BBC: Warning that US banks face more pain
2023-03-16
WASHINGTONTIMES: Silicon Valley Bank’s woke agenda thrived while managers ignored investment risks
NYTIMES: No, “wokeness” did not cause Silicon Valley Bank’s collapse. Here’s a fact check.
WSJ: Why Top Washington Officials Chose to Rescue SVB Depositors
FOXNEWS: Biden's banking busts include this single biggest monetary policy mistake in half a century
MSNBC: History predicted what could happen with SVB. I did, too.
NBCNEWS: Silicon Valley Bank quietly laid off employees as tech firms in its backyard also slashed jobs
NYPOST: Silicon Valley bank collapse
https://www.pewresearch.org/journalism/2020/01/24/americans-are-divided-by-party-in-the-sources-they-turn-to-for-political-news/