Matthew Yglesias

@mattyglesias ↗

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Last Checked March 14, 2023

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Sun Mar 12 15:41:51 +0000 2023

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Matthew Yglesias @mattyglesias

In other words “if you don’t guarantee 100 percent recovery of all uninsured deposits at SVB then every depositor will flee every other bank for a GSIB where there money will be safe” is certainly a *convenient* argument for SVB depositors but it involves multiple leaps of logic. — PolitiTweet.org

Posted March 12, 2023

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Matthew Yglesias @mattyglesias

Should also say: While GSIBs are held to higher regulatory standards that should reduce the odds of a haircut in the event that Orderly Liquidation Authority is invoked, there is no statutory or regulatory guarantee against uninsured depositors taking haircuts that I know of. — PolitiTweet.org

Posted March 12, 2023

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Matthew Yglesias @mattyglesias

We are also in a different situation macroeconomically. The Fed is trying to reduce spending to slow inflation not increase it to prop up demand, so “err on the side of doing more” logic that applied in 2007-2008 doesn’t apply today. — PolitiTweet.org

Posted March 12, 2023