of big shortauthor Michael Lewis presented traders who foresaw the financial crisis of 2008 and, in some cases, profited. Danny Moses, which actor Rafe Spall eventually played in the 2016 Academy Award-winning film based on the book.and CNBC interview On Tuesday’s broadcast, he said the collapse of the Silicon Valley Bank would only exacerbate the slowdown in the US economy.
To those who believe the US economy will “slow down,” Moses said the SVB “has accelerated that slowdown because banks have actually had to curtail their activity.” The economy was already in doubt before the SVB meltdown. Inflation is on the rise and the Fed raised interest rates sharply last year. Moses believes that if the collapse of the bank wasn’t the straw that broke the camel’s back, it was close.
“Given that regulators were completely caught off guard, I doubt they have any idea what they’re really dealing with,” Moses told CNBC. Because of what happened,” he said. Also, as far as Moses is concerned, the fact that the US government swiftly bailed out his SVB on Monday “should make people uneasy.”
Moses was directly critical of the SVB. speak to new york times For an article documenting the bank’s recent woes. “This is not necessarily greed at the bank level,” he said. Times“It’s just bad risk management. Risk management on SVB’s part was complete, utterly bad.”
In an interview with CNBC, Mr. Moses said that if the Federal Reserve thinks the current precarious economic conditions are “going away any time soon,” it’s “just kidding.”
