The Banking System Is Fine. Also, I Have A Bridge I Can Sell You
Recently, Silicon Valley Bank succumbed to what many are calling a bank run. Two days later, Signature Bank in New York was seized by the Federal Reserve and all its uninsured depositors were bailed out. First Republic followed a few days later, receiving a cash infusion from larger banks just to keep its doors open. Then, one of the largest banks in the world, Credit Suisse, essentially closed its doors after being swallowed on the cheap by UBS (who received, of course, government guarantees as a condition of the deal). There have also been rumors of other banks struggling to manage deposit outflows, and credit default swaps (a measure of default risk) on several other major banks (like, ironically, UBS and banking giant Deutsch Bank) are flashing warning signs. Is this the beginning of another banking crisis?
No, of course not. The banking system is fine. Also, I have a bridge I can sell you.