Shades of 2008?

 

Silicon Valley Bank closed on Friday, then Signature Bank, who loaned to, of all things, high risk crypto endeavours, was shut down on Sunday. Two banks who's interests were almost exclusively in one industry; tech. Its not usual for a bank not to be diversified in its portfolio, but these two weren't and were overextended. Or rather their clientele were overextended.  Obviously the GP (general public) don't have the inside track on how long things were shaky with either of these banks, but to me, it looks too much like 2008 coming back all over again. 

And today the stock value of regional banks in the U.S. have tumbled as the fallout continues. 

I wouldn't care but for the fact that what happens in America, happens everywhere else. This is what global economics is about. No country is an island anymore as we found out in 2008. 

Unfortunately we just can't seem to sandbox the U.S. and its irresponsible government policies and poor business and lending practices. No lessons learned, the same bunch of cowboys who triggered the last economic meltdown are at it again.

And once again, central government is expected to prop up the system with more taxpayer money. 

They say bad things come in three's; 2008 global financial fiddle, 2020 COVID, now ..... this?

Late addition:  after I published this post I remembered something I read about feudal Japan. The Samurai class ruled the country and there was a strict hierarchy among the population. Bankers and money lenders were at the bottom of that ladder, lower even than the Eta or scavenger class. They were held in contempt by the samurai and were seen as parasites, a necessary evil, who produced nothing and profited from the labour of others. Strict laws forbade them to publicly flaunt their wealth or hold public office. No self-respecting samurai, no matter how lowly, would engage with a banker. If he needed to borrow money, another family member, usually a woman, would undertake that task.  Interesting how times have changed, isn't it.