| “The idea that capital requirements provide safety is an economists’ illusion,” writes James Galbraith.
This week, Galbraith broke down how Silicon Valley Bank and its small bank peers plummeted this month, and what so-called financial experts across politics and academia got wrong about the matter. “The Fed works—as a wise Republican monetarist told me many years ago—for the biggest banks…the big banks are not the friends of smaller banks…[and] the big banks, which operate across the globe, depend on the God-almighty dollar.” |
