With CNBC, which was completely broadcast on Friday, Kennedy emphasized that banks were made more vulnerable on the basis of trust "and in the age of advanced communication technology.
"You are really only-and do not understand that wrong-sophisticated snowball systems," he said. "They work if everyone trusts the other."
given the speed at which banking panics can spread from the iPhone of a single person, Kennedy said that a herd can "get and storm", to the point at which "every bankruptcy can go".
The Silicon Valley Bank (SVB) was confiscated by the Federal Deposit Insurance Corporation (FDIC) in March after she was unable to meet all customer claims due to a rush. In the case of the insert were quickly saved fully from the FDIC and the Federal Reserve.
The first rush to the banks began when SVB announced that it had realized a loss of $ 1.8 billion after the sale of bonds of $ 21 billion to restructure their balance sheet. Panic spread in the following two days when Paypal co-founder Pether Thiel companies encouraged companies to withdraw from SVB.
The surrounding panic also led to an increase in the request for the leaning, including the signature bank, which was placed under forced administration shortly after SVB. Earlier this week, Bank of the first republic was also threatened with extinction, with most of his assets sold by the FDIC to JP Morgan.
The Federal Reserve confirmed on Wednesday that the banking system remained "solid and resistant". The former CTO of Coinbase, Balaji Srinivasan, did this, however, argues that the finance ministry and the Federal Reserve have not warned the markets in the past, until actually a deep recession occurs.
a longer inflation battle
According to Kennedy, the taming of inflation requires a further increase in interest rates of currently 5 % to 5.25 % to the range of 8 % to 10 %-unless the problem is addressed both from a monetary and fiscal perspective.
"Powell will have to raise interest rates much more than he would normally have done if the congress slowed the stimulation of the expenses," he said.
rising interest rates are considered to be largely responsible for the scratched bond portfolios, which banks, like the SVB, have only led bankruptcy into bankruptcy. After the recent increase, however, market analysis indicates that Bitcoin may not be as affected by a firmer monetary policy as last year.
Selected image with the kind approval of the Washington Post
.
