Bankless ROLLUP: Will FAILING Banks Bring Down the Economy?!
21 snips
May 5, 2023 Recent bank failures are shaking the economy, with discussions around the potential nationalization of the U.S. banking system. The collapse of First Republic Bank highlights troubling trends, as rising interest rates pose a serious threat. Meanwhile, innovations in crypto continue to flourish, with Coinbase expanding internationally and Venmo introducing crypto vaults. The looming risk of stagflation and the need for reliable exchanges spark intense debate, leaving listeners pondering the delicate balance between traditional finance and the evolving crypto landscape.
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Fed's Risky Strategy
- The Federal Reserve ("Fed") raising interest rates is causing economic turmoil, like bank failures.
- Ryan Sean Adams thinks this is a risky strategy and questions its effectiveness.
Fed's Surgical Approach
- The Fed's strategy involves raising rates to combat inflation while bailing out failing banks.
- David Hoffman argues this allows them to continue raising rates despite the unintended consequences.
Powell's Recklessness
- Jim Bianco criticizes Jerome Powell, suggesting the Fed knew the risks of rising interest rates causing bank failures.
- Despite this knowledge, Powell proceeded with hawkish policies, leading to the Silicon Valley Bank failure.