[Alberta's Child]

I get the exact opposite impression. If 88% of its deposits aren’t insured, then this bank failure doesn’t seem to be affecting many people.

I’d be more concerned with a bank failure where 0% of its deposits aren’t insured.

[cgbg]

It is mostly businesses that had deposits above the FDIC limits.

The problem is that their losses have to come from somewhere.

They may have to close down part of their operations, lay off employees, stop paying vendors.

That is a great example of financial contagion.

Just as inflation slowly moves through the economy, deflation (losses) takes time to have its full impact.