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that's what he is saying after the slides Is there another bad assumption today? The recent failure of Silicon Valley Bank has raised fears of a
by MichaelMoser123 4y ago
that's what he is saying after the slides
Is there another bad assumption today?
The recent failure of Silicon Valley Bank has raised fears
of a new banking crisis. One way to look at SVB's failure
is: SVB assumed that interest rates won't rise.
what i don't understand: how did they handle the banking crisis of the eighties? Somehow that one didn't manage to kill the economy, how?
- nkuttler 4y agoMy guess is less concentration, debt and leverage in total. We seem to have progressed to a point where the entire system is very unstable and always at risk, and the only tool we seem to have left is creating more debt/money. Our modern fiat money is one of the greatest experiments in human history, and we have no evidence yet that such a system can be stable long term.
- rtkwe 4y agoFor one we hadn't gutted Glass-Steagall yet so banks were still separated into investment and savings/commercial so banks weren't as leveraged. We keep undoing and rapidly relearning why these things were put in place and the cycle from repeal to collapse is only getting tighter.