Tuesday, June 25, 2024

Feds Move To Stop Potential Banking Crisis While Remaining Woefully Ignorant

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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