• The micro-stupidity of SVB’s astonishing failure to manage its risk should not distract us from a macro-understanding that what ruined it and put everyone else in danger was (and still is) the ebbing economic tide. And that was caused substantially by President Joe Biden and his fellow Democrats.
• The high interest rates that undid SVB were imposed by the Federal Reserve to stop inflation that hit 9% last summer. To acknowledge that tightening money is killing weaker banks and others is not to suggest that raising them was a mistake. Getting inflation under control is vital, and more broadly, it is important that real rates are high enough to impose a cost on borrowing — because cheap or free money encourages careless investing.

Tagged: #Bidenflation