This week really has been one for the books. On Friday, markets sounded the alarm as we experienced the second largest bank-failure in US history. Naturally, this behemoth event swept magazine covers and blew up our phones and inboxes leaving not much room for other things to watch – hence this peculiar edition of the recurring ‘5 Things We Watch’, where all five things relate to the banking frenzy.
Something for your Espresso: The hiking cycle is over
The hiking cycle seems over, even if inflation is running too hot. Lower rates are likely needed to resteepen the curve and tempt money back into deposits from bills and money market funds. The Fed is caught between a rock and hard place.
Something for your Espresso: Bear Stearns 2.0?
Silicon Valley Bank is under water on the exchange and a bank-run is currently unfolding it seems. Should we be worried? A few notes from a night of full of telcos.