Bakhmut; China Troubles; Debt Ceiling; Migrant Crisis; EU & Big Tech | YBS: News Roundup May 22
Yaron Brook Show
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The Importance of Deposit Insurance in Banking
Banks have been amazingly cautious in their risk taking over the last 12 years. But there's no massive risk taking by banks, not in the same way as SNLs where they went out and purchased high risk assets to save them from bankruptcy. The deposit insurance generally leads to a moral hazard which is an incentive to take risk. Just the bankruptcy of Silicon Valley Bank should not have justified. It just doesn't make any sense. And it's panic more than reality.
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