Federal reserve and Jay Powell continued easy money much longer than required, ignoring high inflation and continued QE and then he abruptly changed and hiked aggressively. In hindsight, it is very clear, FED’s actions are highly questionable. Then we had SVB failure, after than it became clear, the regional banks are going to require some sort of guarantee for their un-insured deposits to tide over. Yet, Sec Yellen, FDIC, and FED are not moving decisively. Now, we have a self-fulfilling regional bankruptcies in play. NO shareholder will hold regional bank stock, or bonds. It is a legitimate fear that equity and bond will be wiped out and not if, but when.
Either intentionally or unintentionally they are making big banks even bigger and creating massive systemic issues.
Are these folks safe pair of hands or amateurs’ running clown show?