"If you look around the table and don't see the fool, you're the fool." -
If you don't think you're the fool, you're probably not considering unforeseen consequences.
The government is now backstopping SVB . They say that no taxpayer money will be used, assuaging most people's fears. So where is the money comoing from? Banks will now pay more deposit insurance. This will lower the rate they will pay on deposits or force them to lose profits, away from equilibrium. Maybe they make riskier loans or charge more interest than they would. Also, now that they are backstopped, there's moral hazard. They will take more risk because they have that confidence. And people will deposit more money because of the guarantee.
The gov will only backstop banks holding their deposits in "qualified assets". Read the fine print carefully as to what is a qualified asset. Demand for them will go through the roof. MBS will be in there. If structured products fit, than more will be created. Ratings will be gamed and the collateral quality will go down in order to meet the demand.
https://marginalrevolution.com/marginalrevolution/2023/03/the-law-of-unintended-consequences.html