In these crises, each time there's some degree of weirdness that goes on. In a strange way, I'd go back to Adam Smith. He had no doubt at all about the vinality of financiers and capitalists. What worries me about this shift to a more state-directed version of capitalism is you end up with a different set of problems which are harder to fix.
A lot has been said about the collapse of Silicon Valley Bank and Credit Suisse. But one important thing revealed by those closely scrutinized failures has largely gone unnoticed: the changing relationship between governments and banks.
Bloomberg Editor-In-Chief John Micklethwait joins this episode to talk about how the idea that finance is an arm of the state is back–and why that will have far-reaching consequences for the way the world works.
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