From WSJopinion: No law, rule or regulation can spare the economy from the consequences of bad policies, especially bad monetary policies, which can turn even the safest of assets into a ticking time bomb
Review and Outlook: While politicians, the Fed and Treasury will try to blame bankers for the latest financial mess, they are as much, if not more, culpable. Images: Zuma Press/AFP/Getty Images Composite: Mark KellyOne surprise for investors in the Silicon Valley Bank failure is that it didn’t hold exotic derivatives, structured debt products or other horrors that caused so much financial carnage 15 years ago. Far from it.
Bad management and negligent oversight from the San Francisco Federal Reserve Bank played a role. But the politicians and regulators who supposedly fixed the financial system after 2008 share responsibility. The banking rules they introduced after 2008 made sovereign bonds such as Treasurys and the mortgage securities of Fannie Mae and Freddie Mac the coin of the realm for bank capital standards.
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