The Lessons of Basel 3 and Basel 3.5

I just think of the world now as a game of musical chairs. And if you take away one of the chairs, one of these small butterflies flapping its wings, it could be Silicon Valley Bank. There's a whole bunch of things that happened since 2008 that weren't really observable before. The regulation was to stop excessive leverage within the banking system and what they've created is a banking system that doesn't provide any leverage at all.