1 Comment

Come on. This panic-whipping articles serve no constructive purpose.

1. There are plenty of fiscal tools (higher taxes, lower gov spending) to tame inflation without raising interest rates. 2. Higher interest rates per se are good for banks' core business, not harmful. 3. The depositors' flight we've seen this month is due only to fear-mongering by the press and irrational behavior after a couple of insanely-managed banks went bust because of their exceptional, individual circumstances. 4. The Fed two weekends ago enacted strong measures to ensure banks have short-term liquidity; with these, even SVB would not have gone bankrupt.

This nothingburger "crisis" will end as soon as the mass media move on and drop the scary headlines.

Expand full comment