A fake video claiming The Simpsons predicted the Silicon Valley Bank (SVB)collapse has gone viral after customers began withdrawing their deposits from the company last week.
From a 2020 pandemic to accurate Super Bowl results, The Simpsons have predicted it all. No wonder the internet has run with the joke and created their own event ‘predictions’ through famous Simpsons scenes.
The latest edited cartoon clip concerns the collapse of Silicon Valley Bank after the California-based company was seized by regulators on Friday (March 10, 2023) as customers frantically withdrew funds over concerns the bank would become insolvent.
The situation has been labeled as the “second-biggest bank failure in US history” with $212 billion in assets, following Washington Mutual, whose 2008 collapse occurred when the bank had about $300 billion in assets.
Viewers who are unfamiliar with The Simpsons scene may be convinced that it’s legitimate, but HITC is here to debunk the video once and for all.
The Simpsons didn’t actually predict the Silicon Valley Bank collapse
The edited clip is cropped from the real Simpsons episode titled The PTA Disbands, which aired on April 16, 1995.
In the original scene, Bart mischievously stirs up trouble as he gossips that the bank is out of money.
Mimicking different voices, he alleges: “What do you mean the bank is out of money? Insolvent? You only have cash for the next three customers?”
Panic ensues within the cartoon bank, prompting protests and violence among guests. The bank in the real scene is named “First Bank Of Springfield”, while the fan-edited video of 2023 replaces it with “Silicon Valley Bank”.
Hopefully, there were no physical altercations in real life.
Check out the manipulated viral clip below, which has made its way onto Twitter and Reddit’s Stock Market subreddit:
The Simpsons – on the collapse of the Silicon Valley Bank.
— vegastar (@vegastarr) March 12, 2023
They never predicted anything… just told you the truth in advance.pic.twitter.com/AxEhi9j0fQ
Why did Silicon Valley Bank collapse?
In short, the collapse occurred due to a run on the bank, when many clients withdraw their money with the belief the bank would become insolvent.
It was triggered following the Federal Reserve’s plans to increase interest rates on government bonds to tame inflation. The company placed billions into the bonds, but when interest rates rise, bond prices fall.
Clients began pulling money out due to the high-interest rates, and in order to manage the high number of withdrawals, the bank’s management was forced to sell $21 billion of bonds at a $1.8 billion loss.
The lender eventually announced they would $2.25 billion in new shares to fill the financial hole, causing venture capitalists to advise investor to pull out from the bank.
The post The Simpsons didn't predict Silicon Valley Bank's collapse as seen in viral edited clip appeared first on HITC.
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