Silicon Valley Bank's downfall was the result of Powell inflicting 'callous' and unnecessary pain on the economy, Nobel economist says
"Silicon Valley's startup entrepreneurs, often young, thought the government was doing its job, so they focused on innovation, not on checking their bank's balance sheet daily."$1.8 billion loss on its bond portfolio
, causing its stock to plunge 60% in a single day and, eventually, for the bank to be shuttered by state regulators and put under the control of the FDIC. The fiasco is largely the fault of the Fed, Stiglitz said, as central bankers raised interest rates 1,700% last year to control inflation. The move has weighed heavily on bond prices, and by the end of 2022,
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