Peter Schiff blames ‘too much gov’t regulation’ for worsening financial crisis

The recent bankruptcies of major US banks and the need for federal intervention have reignited the debate to identify the most effective ways to protect the collapsing economy. Comparing this episode to the 2008 financial crisis, noted economist Peter Schiff found that tightening bank regulation contributed to the worsening of the economic crisis.

A deeper analysis of Silicon Valley Bank (SVB) by a group of economists has revealed that about 190 US banks are at risk of a depositor-driven collapse. It was emphasized that monetary policies taken by central banks could hurt long-term assets such as government bonds and mortgages, resulting in losses for banks.

The 2008 financial crisis was largely caused by the collapse of the housing market. But Schiff attributed the crisis to “too much government regulation.”

Schiff highlighted how the US government introduced new banking regulations after the 2008 financial crisis, promising that “what is happening now will never happen again.” he added:

“But one of the reasons the 2008 financial crisis happened was government overreach. Regulation. That’s why this crisis will get worse.”

Finding the right balance between regulation and banking institutions is important to Schiff. Puerto Rico Regulators Close Schiff Banks A little while ago, July 4, 2022.

At the time, Crypto Twitter reminded Schiff why millions of people around the world are seeking financial freedom and endorsing Bitcoin (BTC) adoption.

Related: SVB mix-up requires SVC Bank of India to issue clarification notice

On the other side of the spectrum, crypto entrepreneurs are starting to focus on Bitcoin’s epic resurgence. Former Coinbase Chief Technology Officer Balaji Srinivasan predicted that Bitcoin will reach $1 million in value within 90 days.

As reported by Cointelegraph, pseudonymous Twitter users James Medlock and Srinivasan have made bets based on differing views on the future of the US economy amid continued uncertainty over the country’s banking system.

Srinivasan’s bet revolves around an imminent crisis that will lead to USD deflation and push BTC’s price to $1 million.