Do we have to choose between inflation or banking crisis?
Choosing between inflation or banking crisis: The impact of SVB collapse on central bank decisions
The collapse of Silicon Valley Bank (SVB), the 16th largest U.S. bank, send shockwaves through the banking system. The FED together with the U.S. government guaranteed all deposits, exceeding protection by the FDIC to stem contagion spreading to other smaller lenders. Big U.S. banks just propped up First Republic with a US30b deposit. Oversimplified, the crisis stems from a lack of risk management. Policy and regulatory decisions after the global financial crisis and recent interest rate rise to halt inflation. The FED meeting was on March 21-22 and voices have been getting louder calling for a halt on rate rises, or even a rate reduction to stabilize the banking system. Does the FED have to choose between financial stability and inflation or is there a third way?
Join us in the upcoming meeting "Do we have to choose between inflation or banking crisis?" this Thursday March 23rd from 18:30 to 20:45 at Salon 10 (10 Arbuthnot Rd, Central).
Register via Eventbrite: https://www.eventbrite.com/e/do-we-have-to-choose-between-inflation-or-banking-crisis-tickets-594842348477
Date/Time: Thurs, March 23rd, 18:30-20:45
Location: Salon 10 (Arbuthnot Rd., 10, Central)
Fee: It's FREE to attend, but we buy a drink as a courtesy to the venue.
Recommended materials to read:
1. The Economist - How deep is the rot in America's banking industry
https://www.economist.com/finance-and-economics/2023/03/16/how-deep-is-the-rot-in-americas-banking-industry
2. The Economist - What's wrong with the banks
https://www.economist.com/leaders/2023/03/16/whats-wrong-with-the-banks
3. Youtube: Patrick Boyle - Silicon Valley Bailout
https://youtu.be/GdfYnqyu7v8
Sign up: Press "Going" on our Facebook event page or register through Eventbrite.
Format: all attendees are expected to come prepared and actually read suggested material and/or self-educate on the topic from our sources of their choice. We will split into small sub-groups of 4 people each to have a free-flow discussion on the theme of the evening.
The Economic Club is a community of intellectually curious people in Hong Kong. Events are run by passionate volunteers.