Where were the people volunteering to join a rescue syndicate for SVB?; Brad Setser on system risk exceptions; wiþ the NIMBYs; Scott Lemieux and David Glasner and Paul Kedrosky and Eric Norlin
Sinead O’Sullivan is right. As I have remarked elsewhere, in the previous gilded age, that noted socialist J.P. Morgan arrested the panic of 1907 by deploying his own considerable (pace Rockefeller) resources but also by arm-twisting his fellows. But the new gilded age lacks the class solidarity of its predecessor; the self-styled visionaries with dreams of colonizing mars and living eternal life thought it more important to look clever in front of their friends than to preserve the system that sustains themselves. When SVB went looking for equity on March 15th, what was the amount? A little over $2bn? The main criticism was that they ought to have "gone big" and raised $5bn. That is couch cushion change for the PayPal Mafia. And yet here we are.
Regarding SVB, perhaps the Fed will need to pay interest on excess reserves again. Perhaps by adjusting the reserve requirement and the interest, money supply can be kept constant assuming things will work that way.
Please unsubscribe me. Thanks, David Fedson
Sinead O’Sullivan is right. As I have remarked elsewhere, in the previous gilded age, that noted socialist J.P. Morgan arrested the panic of 1907 by deploying his own considerable (pace Rockefeller) resources but also by arm-twisting his fellows. But the new gilded age lacks the class solidarity of its predecessor; the self-styled visionaries with dreams of colonizing mars and living eternal life thought it more important to look clever in front of their friends than to preserve the system that sustains themselves. When SVB went looking for equity on March 15th, what was the amount? A little over $2bn? The main criticism was that they ought to have "gone big" and raised $5bn. That is couch cushion change for the PayPal Mafia. And yet here we are.
Regarding SVB, perhaps the Fed will need to pay interest on excess reserves again. Perhaps by adjusting the reserve requirement and the interest, money supply can be kept constant assuming things will work that way.