Too much Fed liquidity has led to world of problems

 SVB did not have adequate liquidity to tolerate a bank run and did not have adequate solvency to meet its liabilities. Emphatically, however, the failure did not occur because there was too little liquidity in the banking system as a whole. It occurred because there was too much.

At the end of 2022, the US banking system had $18tn in domestic deposits, including an estimated $10tn of deposits insured by the Federal Deposit Insurance Corporation. 

That meant there were $8tn of deposits that exceeded the FDIC insurance limit.

John Hussman FT 24 April 2023

https://www.ft.com/content/af8c4d77-cb58-4893-9257-d7bf0f365cbb


Why is it so hard to accept that speculative bubbles can burst?

John P. Hussman, February 2022

https://englundmacro.blogspot.com/2023/01/om-inflationen-vander-ner-och-rantorna.html


Jag tycker det är skriande uppenbart att räntan världen över är för låg och att en större del av stimulanserna borde ske via finanspolitiken.

Rolf Englund blogg 5 december 2009


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