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Silicon Valley Bank’s Collapse Is a Direct Consequence of Loose Monetary Policy

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Silicon Valley Bank’s Collapse Is a Direct Consequence of Loose Monetary Policy
Employees stand outside of the shuttered Silicon Valley Bank headquarters in Santa Clara, Calif., on Mar. 10, 2023. Justin Sullivan/Getty Images
Daniel Lacalle
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Commentary

The second-largest collapse of a bank in recent history after Lehman Brothers folded in 2008 could have been prevented. Now, the impact is too large, and the contagion risk is difficult to measure.

Daniel Lacalle
Daniel Lacalle
Author
Daniel Lacalle, Ph.D., is chief economist at hedge fund Tressis and author of the bestselling books “Freedom or Equality” (2020), “Escape from the Central Bank Trap” (2017), “The Energy World Is Flat”​ (2015), and “Life in the Financial Markets.”
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