Bernie Brains Clocking Failed Banks?

1st Republic. SVB. Signature. Credit Suisse. WSJ calls out economists & policy wonks under “illusion there is a monetary & fiscal free lunch” & who acted out “quack notion” govts can print $, spend way to prosperity …

In its op ed titled, “The Panic Spreads to Credit Suisse,” the editors note how the US as well as EU “financial trouble is exposing many myths of the mania years.” It recalls how, oh so recently, “some Europeans spent the weekend patting themselves on the back that tighter banking regulations would protect them from the fiasco at mid-sized US banks. Well, tell that to the Swiss” as “the storied Credit Suisse sunk Wednesday into the most serious crisis of its 166-year history – becoming another warning of the financial reckoning to come & perhaps a major test for post-2008 financial regulation.”

Of course, many are hoping it’s all an illusion, just a rare series of botched but otherwise sustainable management models. But, as the WSJ warns, “The world is witnessing more than one-off management foibles & failures. This is becoming a global reckoning for years of policy illusions & financial excess. The biggest illusion is … Modern Monetary Theory” which Bernie Sanders is a big fan of become it implies big governments can print as much money as they want to fund whatever business or public or private wish list they want fulfilled, whether the new paper is backed by anything but wishful thinking. The second biggest illusion? That “regulations would keep banks safe … Tell that again to the Swiss … The panic is now here. We should all hope the crash, if one comes, isn’t too severe as gravity reasserts itself.”

Davd Soul