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.
No asset is "risk free." That is a marketing term coined by Wall Street bankers and bureaucrats to peddle debt backed by the "full faith and credit" of our now hopelessly insolvent Uncle Sam.
Decades of overleveraging is threatening the financial system. The absolute importance of diversification via a balanced portfolio during risky moments. PMs, the ideal panacea..
The more they say they are working to make sure there won’t be any contagion, the more you know there will be. The fact is there is already contagion and lots of it.
