Per Fortune
Jeremy Siegel: 'Fed shrapnel killed this bank and may send the economy into recession in the process'
3/22/2023
In an opinion piece on Fortune by Jeffry Sonnenfeld, Jeremy Siegel, and Steven tan, statements were made saying that the "Fed shrapnel" was the reason why Silicon Valley Bank imploded. The piece said that the economy could be sent into recession.
"Make no mistake about one of the prime reasons for SVB’s implosion: Fed shrapnel killed this bank and may send the economy into recession in the process."
The piece said that bold emergency measures were taken to help ensure that all deposits in Silicon Valley Bank were safe and secure. This resulted in at least 60,000 businesses and around 10 million workers saved.
It was mentioned that the save was due to President Joe Biden and Secretary Janet Yellen's leadership of a joint Treasury, FDIC, and Fed. The piece also highlighted that due to their efforts, the domino effect would stop before other banks would take a hit.
The piece also talked about how it was not the time to look for someone to blame, even including a quote from President Dwight Eisenhower.
“The search for a scapegoat is the easiest of all hunting expeditions.”
The piece then mentioned, with several sources, how they have been warning about how the Fed was oversteering the economy.
"We have been warning for months that the Fed is oversteering the economy, but this crisis is more evidence that the Fed has gone too far and might steer the economy not just off the highway but right off a cliff."
JPMorgan says that the Feds are not past the point of no return and that a soft landing would be unlikely. This came as the bank joined many others in redoing their analysis as to whether a recession was going to happen.
While this is happening, Yellen is trying to calm the public, saying the "US financial system is safest and most liquid in the world."
See flow at unusualwhales.com/flow.
Other News:
- JPMorgan says Feds are past the point of no return: 'a soft landing now looks unlikely'
- Yellen: US financial system is safest and most liquid in the world
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