Anybody who thinks Silicon Valley Bank was a one-off is deluding themselves. Financial crises have occurred on average once a decade over the past half century so the one unfolding is, if anything, overdue.
The reckoning has been delayed because, since 2008, banks have been operating in a world of ultra-low interest rates and periodic injections of electronic cash from central banks. Originally a temporary expedient after the collapse of Lehman Brothers, cheap and plentiful money became a constant prop for the markets.
Over the years, there was debate about what would happen were central banks to raise interest rates and to suck the money they had created out of the financial system. Now we know.
The action deemed necessary to rein in inflation has deflated housing bubbles, sent share prices plunging and left banks nursing big losses on their holdings of government bonds.
The Bank of England was quicker out of the blocks than the Fed.
Diese Geschichte stammt aus der March 24, 2023-Ausgabe von The Guardian Weekly.
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Diese Geschichte stammt aus der March 24, 2023-Ausgabe von The Guardian Weekly.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
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Starlink's conquest of the Amazon leaves Brazil in a dilemma
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Celeriac soup with almond pangrattato
I'm not ashamed to say that as soon as September hits, my stick blender comes out. Just as I embrace salads when the clocks go forward in the UK, I wholeheartedly throw myself into soup season once the summer holidays end. Autumn is approaching in the northern hemisphere and I'm ready with my ladle. Celeriac is one of my favourite soup heroes, because it gives the creamiest, silkiest finish with little effort. You don't have to make the almond pangrattato, but it is a wonderful addition.
Are smoke signals telling me to make an oil change in the kitchen?
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A darkly humorous encounter between an American spy-cop and the members ofan eco-commune she is hired to infiltrate
All work and no play
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