'Since 2008, governments and central banks have been trying to prop up the banks through a combination of socialism for the banks, and austerity for everyone else,' writes YanisVaroufakis. 'The result is what we see today.'
Every systemic banking crisis has a trigger that sets it off. In the case of SVB, the reason for its bankruptcy is twofold.
The plummeting in the share prices of Big Tech and of the entire digital ecosystem of small tech start-ups around Big Tech – a decline caused by the Fed’s termination of money printing.The first hit its funds, which were mainly invested in US treasuries. This happened as the rise in interest rates reduced the resale price of these bonds . In itself, this development was not sufficient to bankrupt SVB.
What could be done as an alternative? The exact opposite: austerity for the banks, with nationalisation of those who cannot survive. Today, Franco-German banks don’t seem to have the same problem – rather, they are being spared due to the antiquated structure of the European economy. What do I mean? Franco-German banks have not lent large amounts to European Big Tech for the simple reason that– they still lend to car manufacturers and extraction companies. So, I don’t see a European SVB on the horizon.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Finger: This Texas team brings a different attitudeThe Longhorns haven't made it past first weekend of NCAA Tournament since 2008 but this...
Les mer »
'Not a 2008 redux,' but BlackRock is ready for opportunities amid 'damage' of rate hikes and recessionThere are 'financial cracks from rapid rate hikes,' not a 2008-style banking crisis, says BlackRock, the world's largest asset manager.
Les mer »
Every time Aaron Rodgers faced the Houston Texans since he became a full-time NFL starter in 2008The QB created a buzz on Wednesday when he expressed his intention to continue his nearly two-decade career away from Green Bay.
Les mer »
This Is Not a Repeat of the 2008 Financial Crisis, But It Is the Same Capitalist Rot'Since 2008, governments and central banks have been trying to prop up the banks through a combination of socialism for the banks, and austerity for everyone else,' writes YanisVaroufakis. 'The result is what we see today.'
Les mer »
Why Silicon Valley Bank's 'safe' investments turned into a problem for banks and the FedUnlike Lehman Brothers, the failed Silicon Valley Bank held billions of dollars in high-quality mortgage and Treasury securities that regulators encourage banks to own as a buffer from potential losses in the post-2008 era. Here’s what went wrong.
Les mer »