Season 1 · Episode 342
SVB collapse shows there’s no safety in government bonds
In 2008 we saw banks collapse because of dodgy assets. This time they collapse is because of US Treasuries, supposedly the safest assets there is.
Debunking Economics - the podcast · Steve Keen & Phil Dobbie
March 15, 202335m 54s
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Show Notes
The collapse of Silicon Valley Bank last week can be put down to two things – first a management team that clearly ignored the falling value of the assets they held, and second the fact that the Fed was doing its best to make those assets fall even more\. The end result is hardly a surprise when you look at the numbers. In fact Frances Coppola predicted as much after the collapse of Silvergate Capital. This week Phil and Steve look at what went wrong and ask whether it could happen to other banks.
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