In each case, I think people were straining at the edges, especially at Credit Suisse. Basically, you've had a long period of low interest rates. It was hard to make money on sort of normal loans, so they started messing around looking for other stuff. And once you have question marks about your numbers, you know, there was a problem about how big the outflows were. Eventually, people get spooked and that is what happened.
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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