An economist’s worrisome prediction of a “really serious” economic catastrophe hitting the US that might be comparable to the one that occurred in 2008 was featured in Friday’s news. It indicates that turbulent times are coming for our economy.
According to Stephanie Pomboy, founder of the economic research company MarcoMavens, “what we’re facing right now is really serious. We are on the brink of a 2008-style financial crisis.” Pomboy claims that Silicon Valley Bank (SVBunprecedented )’s liquidation by federal authorities on Friday marked the worst banking failure in US history since 2008. Financial markets and institutions have all responded in kind to this incident.
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Pomboy informed Carlson that the terrible bank failure was caused by the Federal Reserve’s exorbitant interest rates. “The Fed hadn’t even raised rates nearly as high as they have today and as I was saying look you don’t raise rates at record fashion on an economy toting record leverage at maximum speculation and expect no consequence. I mean this was clearly going to happen and now we are seeing the weak links in the chain break.”
The US-based economist continued by stating that there would be more bank collapses because of “the fed’s monetary policy layered with a really bad fiscal policy on top of it.”
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“You could get 0% sitting in t-bill or having your money in a bank or you could go out and you could speculate and that is what they have done and that is all coming back to bite them hard and we got some major consequences coming at us and I think it is going to devolve very rapidly because of all the leverage that’s been built up here,” Pomboy added.
