Problems with banks, again?
The headline in financial news is the collapse of Silicon Valley Bank (SVB) and Silvergate Bank. I would caution comparing these failures to the financial crisis of 2007-2008. Realistically, SVB is confined to the start up sector and somewhat regionally confined to California and potentially New York technology companies. With regard to Silvergate Bank, they are more of a crypto currency focused bank with only three branches. While bank failures are never a good thing, so far this doesn’t seem to be a system problem with banking per se. Now, if another bank or two fail in different sectors such as mortgage and commercial lending that might indicate bigger problems may arise. For now, interest rates seem to be the tool the Federal Reserve is going to use to ease issues in lending thus helping banks and companies fulfill their operational needs.
Jobs & Millennials
It looks like many Millennials aren’t dealing with layoffs very well. As a generation that hasn’t had to endure mass layoffs and with many getting easily hired into remote roles with questionable organizational value, it’s no wonder they aren’t sure how to react. This generation can’t keep getting battered by the mistakes of their predecessor generations and made the scapegoat for all that is wrong with the economy and society in general.
For more on economic activity about a CEO who is likely in a lot of trouble and what might be happening with interest rates click this link.