In just the last week we’ve seen the second- and third-largest bank failures in US history: Silicon Valley Bank and Signature Bank. Several others look shaky.
The Fed and U.S. Treasury have made to decision to back-stop depositors at U.S. banks – a liability that could potentially hit $2 trillion. More interestingly, there must be...
The tide is turning towards mitigating the damage of the steep rise in interest rates, but will it turn fast enough and when it does, just how close to capsizing will we be?
I expect Goldilocks to be temporary, maybe very temporary because typically when the Fed halts a rate hike regime that is when troubles brewing beneath the surface..
Many articles and pundits will say that SVB collapsed due to lack of risk managment or insuffiecient regulation. But the root cause of SVB (and other bank failures) is much scarier than hoping the problem is unique to SVB.
