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Wall Street Journal (March 13)

2023/ 03/ 13 by jd in Global News

“For the second time in 15 years (excluding the brief Covid-caused panic), regulators will have encouraged a credit mania, and then failed to foresee the financial panic when the easy money stopped.” Other banks may be exposed to the duration risk that brought down Silicon Valley Bank (SVB), “as last week’s selloff in regional bank stocks shows…. Something like 85% to 90% of SVB’s deposits are uninsured. The worry is that depositors in other banks will now flee.”

 

Forbes (July 11)

2022/ 07/ 13 by jd in Global News

“Bitcoin bulls beware: Wall Street expects the cryptocurrency’s crash to get a whole lot worse. The token is more likely to tumble to $10,000, cutting its value roughly in half, than it is to rally back to $30,000,” according to survey of 950 investors. This “lopsided prediction underscores how bearish investors have become. The crypto industry has been rocked by troubled lenders, collapsed currencies, and an end to the easy money policies of the pandemic that fueled a speculative frenzy in financial markets.”

 

Bloomberg (January 10)

2020/ 01/ 12 by jd in Global News

Today’s “easy-money policies” appear to be “setting up global markets for the next Minsky Moment.” If economist Hyman Minsky is right and the modern “economic cycle is driven more by surges in the banking system and in the supply of credit,” we can expect a tremendous crash when it ultimately comes.

 

Wall Street Journal (January 26, 2014)

2014/ 01/ 27 by jd in Global News

As the Federal Reserve begins tapering, we’ll see which emerging markets have “been swimming naked.” During the days of easy money, nearly anybody could enjoy the party. Now we’ll see which countries squandered the opportunity and left themselves exposed. “The end of Ben Bernanke’s Fed tide will have its uses if it spurs the kind of tax, trade and investment reforms that have been put off in too many places. The question is how much damage will be done as this global adjustment takes place.”

 

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