Interesting, but what is the underlying cause of SVB's failure? Are financial regulations adequate, and did SVB follow them? Depositors are aware the FDIC insures up to $250K, yet they deposited more than $250K. That's risky, or perhaps, they comprehend their leverage. Everyone knows the US will bail out banks and big businesses - why worry?
The bank run is a symptom. If Clinton hadn't deregulated the banks and Glass Steagall still existed we may (would) have avoided the 2008 crisis. Still, Bush, Obama, Trump, or Biden could have reinstated the Act, but they didn't because that would limit profits, and the government's role is to protect capital.
China doesn't have to generate financial insecurities because capitalism's peaks and troughs guarantee them, and de-dollarization began a decade ago. It makes no sense for nations to trade in USDs, and the US weaponizes its currency.
No independent, sane government would continue to participate in the system if they weren't forced. The US raises interest rates and the whole world suffers because strengthening the USD increases inflation and import costs globally. It's a mess out there, so BRICS, etc. seek alternatives.
Chinese capitalists will never endure US scrutiny because the US will "save" the minority if China decides wealth redistribution is essential for the majority. US foreign policy is fighting the impoverished masses for the wealthy minority, and
blaming Chinese investors disguises and distracts us from the fundamental problem. Also, it's not a good idea to solely blame the Chinese for our government's deregulation policies, but race and class are effective tools to protect the wealthy class.
We need regulations to protect us, and "it's too complicated and we're powerless to blame the culprits without getting into trouble" because the offender is our government. It's a capitalist government - its job is to protect capital because wealth is the only thing that matters.
Deregulation facilitates higher profits and risk, and we've deregulated everything. I'm surprised planes aren't dropping out of the sky - shit. The airlines are consolidating, so it's only a matter of time. Ugh.
American greed caused a global economic catastrophe - twice! Jeez, I almost forgot about the Great Depression. So, I don't blame Chinese investors, especially since it shouldn't be that easy to create paranoia and collapse a bank.
I expect more financial turmoil, and I'm sure we'll blame whichever enemy needs more hating, but we should remember that the US is the strongest military and economic power in existence. It's not easy to take down a big beast, but it'll implode if you let them make mistakes, and the US is making a lot of greedy mistakes.
This article does a good job of explaining the economics behind the bank collapse.
https://www.marketplace.org/2023/03/16/duration-risk-got-silicon-valley-bank-into-trouble/
Oh and this one: https://www.marketplace.org/2023/03/16/silicon-valley-banks-collapse-reveals-deeper-flaws-in-the-venture-capital-industry/
