March 20 (Monday)
Latest Morning Briefing Executive Summary: Other People’s Money
Will SVB be the financial domino that sets off an economy-wide credit crunch that leads to a recession? Maybe not given the Fed’s intervention; but if so, we don’t see another Great Financial Crisis. … Why have banking crises been a recurring cause of US recessions anyway? The crux of the problem is that bankers tend to take excessive risks because it’s not their own money on the line and the government has their backs. … Also, we take close looks at: how Fed tightening has eroded the value of banks’ bond portfolios, the SVB blame game, and SVB’s economic ripple effects. … And: Dr. Ed reviews “Living” (+).
(subscribers’ link)
YRI
Daily Markets Overview
Replay of Dr. Ed’s webinar on March 13.
Markets
Bank Stocks Are Cheap, but Mind the Deposit Doom Loop | BR
Banks Survived Another Week—and the Biggest Ones Look Like Winners | BR
First Republic falls: S&P credit rating downgrade | C
Central bank
Fed, other central banks set joint liquidity operation | C
The Fed’s New Bind: Taming Inflation While Preventing Financial Mayhem | BR
Is It Bear Stearns II, or Just a Bear Market? The Fed Is Watching. | BR
The Banking System Was an Accident Waiting to Happen After the Fed’s Quantitative Easing | BR
Elizabeth Warren says Jerome Powell has ‘failed’ as Federal Reserve chair | C
Banks
Credit Suisse Bond-Wipeout Threatens $250 Billion Market | W
$17 billion of Credit Suisse bonds worthless following UBS takeover | C
What UBS’ rescue of Credit Suisse (CS) means for markets and banks | C
What’s wrong with the banks | The Economist
Elizabeth Warren Calls for Investigation of SVB and Signature Bank Collapses | W
FDIC announces agreement to sell Signature Bank assets | C
US
Smaller Banks’ Critical Role in Economy Means Distress Raises Recession Risks | W
That Plum Job Listing May Just Be a Ghost | W
Why America is going to look more like Texas | The Economist
Geopolitics & trade
Biden’s ‘Go It Alone’ Trade Deals Draw Warnings From Congress | W
China’s Xi Arrives in Moscow as Beijing Seeks to Position Itself as a Peacemaker in Russia-Ukraine War | W
Vladimir Putin Harshly Criticizes West as Xi Jinping Strikes Softer Tone | W
Technology
Microsoft, Nuance announce clinical notes application powered by OpenAI | C
Corporate finance
The Cash Risk: How Corporate America Is Handling Trillions in Cash | BR
Beyond markets
IPCC report on climate: UN scientists call for course correction | C
