Socialism, welfare state fails often

It is more fun criticizing

 Nothing is ever free; nothing comes from nothing  Eventually someone has to pay for the amount that was stolen, borrowed, or forcibly transferred.  

Someone has to sow, harvest and mill the harvest.  

Credit Suisse problem is a worldwide financial malaise?

It is more fun criticizing

Ulongnuno on Credit Suisse malaise

Manila Times - bank fears spread to Europe

Credit Suisse share prices dived a quarter on account of bad news about Silicon Valley Bank closure

All ready the prices of shares of Paribas and Deutsche  Societe Generalebank dived.

France's Societe Generale SA dropped 12 percent at one point. France's BNP Paribas fell more than 10 percent. Germany's Deutsche Bank tumbled 8 percent and Britain's Barclays Bank was down nearly 8 percent. Trading in the two French banks was briefly suspended.

Credit Suisse is "a much bigger concern for the global economy" than the midsize US banks that collapsed, said Andrew Kenningham, chief Europe economist for Capital Economics.

It has multiple subsidiaries outside Switzerland and handles trading for hedge funds.

"Credit Suisse is not just a Swiss problem but a global one," he said.

Since the CSB has branches elsewhere in Europe and the world, its problems malaise is not confined to Switzerland but around the world.   Gladly the Swiss National Bank promised a liquidity support up to $54 billion

This post may bear marks of nega and being alarmist.  But is this the global collapse that pundits are predicting? Could this be the start of worldwide recession.  ?  Have we braced enough for this.?

Has our country institued countermeasures. ?  But surely not yet since we are so far away yet  

One of the aspects that we should be concerned about this is the foreign remittances by OFW.  With these bank malaise, banks may tighten lending and if closed cause domino effect on the industries they are supporting..   And this may mean reduced inward remittances   Lesser consumer spending locally

Bad for the local economy.  Should we not be concerned?  

Top govt honchos blame bank officials for making the wrong calls

It is more fun criticizing

White House Fed to blame for SVB closure

Elsewhere responsibility and even in this article on the shoulders of bank officials for making the wroong callls ie investing short term deposits in long term bonds  But who wants the company you are leading to fail to leave a bad legacy?  Or have enemies for making depositors lose their money?  None I guess

But SVB was in a tight squeeze, it could not have decided otherwise:

1.  It could not make loans to start ups who were awash with cash;

2.  It had no choice except to go long term to get higher returns to cover their costs and high liquidity level

The rest of responsibility lay outside  (Fed)

1   For loosening reins on money supply since debacle of 2008;

2.  For increasing interest rate lately to rein in money supply and inflation..  

SVB just could not take the strain from loose money to tight money supply high interest rate environmnet

Even investment in equitiies was a a nono  The stock prices were crashing.  

We just hope that even with CSB difficulties, the contagion does not spread to Europe and/or Asia