Mar 21 • 2M

What the US and European bank rescues mean for us

US Treasury Secretary reassures depositors in other small US banks their money is as safe as the uninsured (but now guaranteed) cash that billionaires had in SVB; Markets now expecting lower rates


Appears in this episode

Bernard Hickey
The latest daily snapshot of the news, detail, insight and analysis on geo-politics, the global economy, business, markets and the local political economy for citizens and decision-makers of Aotearoa-NZ.
Episode details
Always a bailout: US Treasury Secretary Janet Yellen said the Government would fully guarantee all savers in all smaller US banks if needed. Photo: Getty Images

TL;DR: No wonder an entire generation of investors are used to ‘buying the dip’ and ‘holding on for dear life’.

US Treasury Secretary Janet Yellen has again overnight reassured American savers and global savers generally that the power of the US Treasury and Federal Reserve to loan unlimited amounts to banks will protect all savers, even the ones with millions of dollars in bank accounts with deposit insurance limited to US$250,000.

Paying subscribers can see more analysis of the bank crisis below the paywall fold and in the podcast above, including how financial markets now expect central banks to ‘blink’ and prioritise financial stability over getting inflation down.

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