Billionaire Elon Musk thinks that the collapse of the Silicon Valley Bank is quite similar to the Wall Street crisis of 1929, which was the premise for the Great Depression of the 1930s in the US.
According to Business Insider (BI), billionaire Elon Musk said that the rapid collapse of Silicon Valley Bank (SVB) is quite similar to the Wall Street crisis of 1929, which was the precursor to the Great Depression of the 1930s. in U.S.A.
Specifically, replying on Twitter on March 14, 2023 to the comment of CIO Cathie Wood of Ark Invest, the Twitter boss said: "A lot of elements today look like 1929." Musk's comments come in the context of the recent shutdown of Silicon Valley Bank and Signature Bank by the US government.
Although Elon Musk did not specify what specific elements are similar to 1929, BI news agency has connected with this billionaire's Tweets before. Specifically, the Tesla founder said that the popularity of cryptocurrencies like Bitcoin or Ethereum was one of the reasons why banking deposits declined for the first time since the 1920s.
At the end of October 1929, the Dow Jones Industrial Average fell 23% in just two sessions, signaling the beginning of the Great Depression.
Ironically, Elon Musk's warning is in stark contrast to the opinion of the most famous names on Wall Street when they think that the collapse of SVB will not affect the stock market as deeply as 2008 let alone the Great Depression of 1930.
Specifically, Rich Handler, CEO of Jefferies wrote in a letter to customers that: “Each case has its own limits and story, which cannot be confused with each other. Simply put, SVB will not threaten both the financial system and its spread as long as people stay calm, acknowledge the serious and possibly out-of-control problem, but at the same time proactively and actively deal with it. intelligently and with direction”.