Sonnenfeld and Tian’s Take on SVB’s Collapse: Setting the Record Straight
Rich TVX News Network highly recommends the TIME article “How the SVB Collapse Has Sparked a Run On The Truth” by Jeffrey Sonnenfeld and Steven Tian. The collapse of Silicon Valley Bank and the Biden Administration’s unprecedented response has led to a national conversation over what went wrong, but a rush to point fingers has sparked fact-free myths that dangerously confuse the public. The article refutes three such false narratives: 1) blaming SVB’s collapse on woke-ism, 2) arguing that emergency measures are the first step toward nationalizing the banking industry, and 3) pretending to have predicted SVB’s collapse. Instead, the article argues that the Federal Reserve’s interest rate thrashing was a key driver of SVB’s collapse, and stronger liquidity and capital requirements may not have prevented it.
