Jack Mintz: Deficit spending is the root of today’s bank failures — via fpcomment
The Biden administration having declared the failed banks systemically important, even uninsured depositors — those with balances of more than US$250,000 — will be fully protected, which is good news for the crypto and Silicon Valley companies that had large, in some cases very large, deposits with these banks. That helps Wall Street, not Main Street.
A painful irony is that all this is happening near the anniversary of Bear Sterns’ collapse 15 years ago today . To stop contagion then, the Federal Reserve arranged for JP Morgan Chase to buy Bear at a fire-sale price of US$236 million. When six months later Lehman Brothers went bankrupt without a rescue, stock prices plummeted and several large financial institutions had to be bailed out.
With low interest rates since 2009, caution has been cast to the winds. The market has been irrationally exuberant over lightly-regulated crypto. Start-up tech shares were bid to dizzying levels even when companies had no earnings. Regulators treated government bonds as “safe assets” when judging bank capitalization, yet these assets lost value as interest rates rose.Article content
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Jack Mintz: Deficit spending is the root of today’s bank failuresHere are three lessons should be learned from this week’s bank failures. Read on.
Lire la suite »
Canadiens snap seven-game losing streak, beat Penguins 6-4Montreal Canadiens overcome early 2-0 deficit to beat Pittsburgh Penguins 6-4
Lire la suite »
Analyzing Golden Knights’ forward Jack Eichel’s rollercoaster seasonKen Boehlke of Sin Bin Vegas joins the show to talk Jack Eichel’s season.
Lire la suite »
'Shazam! Fury Of The Gods' Stars Asher Angel And Jack Dylan Grazer On Working With Helen MirrenAhead of “Shazam! Fury of the Gods” hitting theatres on Friday, March 17, ET Canada’s Sangita Patel chats with stars Asher Angel and Jack Dylan Grazer to find out what it was like filming the movie alongside the legendary Helen Mirren.
Lire la suite »
'Shazam! Fury Of The Gods' Stars Asher Angel And Jack Dylan Grazer On Working With Helen MirrenAhead of “Shazam! Fury of the Gods” hitting theatres on Friday, March 17, ET Canada’s Sangita Patel chats with stars Asher Angel and Jack Dylan Grazer to find out what it was like filming the movie alongside the legendary Helen Mirren.
Lire la suite »