Hallucinating Stewards

There are some similarities between the 2023 state of the US economy and the 2008 financial crisis related to inflation and supply chain disruptions, however, the underlying causes of the two situations are different. The concise but scoped analysis of major economies related to the present circumstances in the US banking crisis divulges Fazle Chowdhury's plea for caution. The US government and the Federal Reserve have taken steps to address the economic impact of the COVID-19 pandemic and curbing interest rates to battle inflation. Such measures, however, have placed several US banks in a tough position. On 15th March 2023, The Silicon Valley Bank (SVB) was closed down by US regulators. This was followed by its former parent company SVB Financial Group filing for Chapter 11 bankruptcy (the filing did not include its remaining subsidiaries). A second, New York-based Signature Bank was forced to shut its doors. It was later bought by New York Community Bancorp (Flagstar Bank). A third, Silvergate bank had previously announced on March 8 they would liquidate due to their failures in their cryptocurrency portfolios. Fazle Chowdhury closely followed the events that led to the fall of Lehman Brothers in September 2008. A strong supporter of the Federal Reserve's response to the 2008 financial crisis rooted in his assessment of the viability and stability of the banking system, he describes a grim reality of the present situation that can be remedied if specific controls are set in place.