Tuesday, June 25, 2024

Feds Move To Stop Potential Banking Crisis While Remaining Woefully Ignorant


There's plenty of fallout from the closure of (at least) two banks over the weekend and the government's announcement it was guaranteeing all depositors' money in those banks.  The bottom line: this was a with all the risks, moral hazards and rewards for very bad behavior we were told would not happen again following the 2008 financial crisis.

As The Wall Street Journal writes:

Treasury Secretary said Sunday there will be no “bailout” for [the now-closed ], but she is indulging in semantics. The feds said they will guarantee even uninsured deposits at SVB as well as at