The Dilemma of the banking system has taken center stage and fintwit is having a great day discussing the crisis.

On Saturday, billionaire entrepreneur and tech CEO Elon Musk commented on a tweet from the financial blog Zero Hedge. The blog had shared a series of charts underlining the importance of small and medium-sized banks, which were hit hardest by the recent banking crisis.

The charts showed that small/medium banks account for something like:

• 50% of US commercial and industrial lending
• 60% of loans for residential real estate
• 80% of commercial real estate loans
• 40% of consumer credit

The tweet raises the specter of another Great Depression if the Fed fails to contain the regional bank collapse.

In response, Musk said, “It’s a serious risk.”

At the weekend, the CEO of Tesla TSLA also offered a few solutions after Y Combinator co-founders Paul Graham shared a Washington Post story about the “appallingly fragile” condition of several banks.

He suggested that the Federal Deposit Insurance Company provide “unlimited coverage” of deposits to prevent bank runs; and that the Treasury Department stop issuing “ridiculously” high-yielding bills that make it unprofitable to park money in low-yielding savings accounts.

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