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Volume 26, Issue 17: April 25, 2023

Fox Business Network's Making Money, March 27 2023; Judy Shelton (Sr. Fellow)
Sr. Fellow Judy Shelton is interviewed on Fox Business Network's Making Money with Charles Payne. She discusses the failure of Silicon Valley Bank and says the Federal Reserve has its own problems so it's not surprising oversight of Silicon Valley Bank was lax. WATCH »

The Beacon, April 11, 2023; by Lawrence J. McQuillan (II Sr. Fellow)
Economists and historians have long recognized the moral hazard of deposit insurance —incentivizing banks to take riskier investments, knowing that the government will backstop losses. The fates of Silicon Valley Bank and New York's Signature Bank may indicate a de facto policy of full depositor protection, with worrisome implications for the banking sector. READ MORE »

Econlib, March 15, 2023; by Scott Sumner (II Research Fellow)
Misconceptions abound concerning moral hazard and its role in the banking system. It’s a mistake to claim that moral hazard played no role when shareholders and bondholders were wiped out. READ MORE »

America’s Future, Mar.16, 2023; by Jonathan Hofer (II Research Associate)
In March, Silicon Valley Bank (SVB) saw a mass withdrawal of funds by clients, and the bank was later closed by regulators. How did this happen? READ MORE »

Mises podcast, March 18, 2023; by Robert Murphy (II Research Fellow)
We have witnessed extraordinary actions by the Fed to address the meltdown of Silicon Valley Bank. Did the central bank break the law by effectively authorizing unsecured loans based on the face value of those banks' Treasury holdings rather than significantly lower market value? WATCH »

Mises podcast, March 25, 2023; by Robert Murphy (II Research Fellow)
With commercial banks exposed by the recent bailouts, Americans question whether “their money” is truly safe despite the promises of FDIC insurance. Jeff and Bob walk through the mechanics of how a full reserve bank could work in a truly free market based on the concepts and taxonomy of Mises’s Theory of Money and Credit. WATCH »

  • Catalyst
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