James Grant: Regulators were charged with seeing the trees, but not the forest. He says Credit Suisse and Silicon Valley Bank had a lot of capital on hand. But they didn't look at one part - investing in fixed rate government bonds. It's like an old-fashioned bank run if suddenly all your people want their money back.
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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