Reminder - SVB is small bank - highest market cap was 50B -- trading at 5B. Low level of contagion. If it does fail - definitely will be felt by start ups with cash at the bank.
It had 198B in deposits end of 2021. Market cap may be less, but a bank run is quite significant.
I think you're probably right, but "Low level of contagion" sounds exactly like what we heard in 2007.
I don't remember hearing that in 2007. Pretty much the first thing I heard about the financial crisis was that there was gigantic contagion risk throughout the financial system.
Maybe not that exact phrase but it does conjure to mind the video of Cramer saying Bear Stearns was fine.