The Rise and Fall of Silicon Valley Bank: A Warning for Other Banks

According to a Duke University professor, the collapse of Silicon Valley Bank earlier this year is not an isolated incident, and many other banks may fail. The professor warns that as long rates increase, it will have negative implications for the economy, particularly in the commercial real estate and housing markets. He believes the Federal Reserve should have stopped raising rates earlier this year to avoid a self-inflicted recession. The professor also notes that the current GDP growth is primarily due to consumers depleting their pandemic savings, and the economy cannot rely on consumer spending to bail it out in 2024.