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March 23, 2023
Our previous blog, Unintended Consequences addressed the possible impact from recent bank failures on retail depositors. The damage could range from a slight inconvenience to financial ruin if the FDIC failed to cover deposits greater than $250,000. In the case of Silicon Valley and Signature Bank...
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March 17, 2023
The failure last week of two of the country’s largest banks offers a case study in risk mismanagement, the regulators’ responses, and the unintended consequences of both. The collapse of Silicon Valley Bank (SVB) last Friday and Signature Bank of New York (SBNY) on Sunday offered a glimpse into...
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January 5, 2023
December closed the books on a disappointing year for investors. The continuing COVID-19 pandemic, 40-year-high inflation, supply shortages, rapidly rising interest rates, war in Ukraine, and a meltdown of cryptocurrencies took their toll across the board. Equities staged numerous short-lived...
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December 1, 2022
The $32 billion bankruptcy of crypto exchange FTX and its trading arm Alameda Research is yet another example of the risks associated with investing in unregulated and unproven markets. FTX is the latest on a growing list of failed crypto associated firms and products. The crypto universe, once...
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November 8, 2022
Last week the Federal Reserve hiked the fed funds rate by another 0.75% marking the sixth increase this year and the fourth consecutive three-quarter point increase. The fed funds target range, which in January was 0.00% - 0.25% now sits at 3.75% – 4.00%. The pace and size of these rate increases...
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October 3, 2022
The recurring theme throughout 2022 continues to be runaway inflation and the Federal Reserve’s inability to contain it. In late June equities staged a rally and interest rates fell on the assumption that inflation had peaked. Then came the July and August CPI (Consumer Price Index) reports. Both...