Thursday, March 23, 2023

Is There A Way To Stop Bank Panics Like The One That Took Down SVB?

Is There A Way To Stop Bank Panics Like The One That Took Down SVB? - I & I Editorial Board
"...U.S. banking disasters plagued the late 20th century and early 21st century.
But of course they go back long before even that, to 1907 and 1929, as two examples.
More recently, there was the 1980s and ’90s savings and loan crisis, the 1998 collapse of Long-Term Capital Management and global crisis, the 2007 financial crisis (which also became a global bank crisis), and, now, the Silicon Valley Bank collapse...
But the big questions are: 
  • Why do these financial crises keep happening? 
  • And what can be done to stop them?
The first answer is easy: They keep happening because of the Fed...

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