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.”
when the governmentimposed a lot of new #Bank Regulations since 2008 ＃Economic crisis, was convinced that what is happening now will never happen again. But one of the reasons the 2008 financial crisis happened was government overreach. regulations. That is why this crisis will only get worse.
— Peter Schiff (@PeterSchiff) March 17, 2023
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.
Despite the lack of evidence of a crime, Puerto Rico’s regulators have slashed net capital rather than allowing a sale to a highly qualified buyer who promises to inject capital well in excess of the regulatory minimum. They closed my bank anyway because of the problem. As a result, the account could be frozen and the customer could lose money.
— Peter Schiff (@PeterSchiff) July 3, 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.
Sir, I think we made a deal ourselves https://t.co/9JYaLNo9Eq
— James Medlock (@jdcmedlock) March 18, 2023
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.
