Recently, Silicon Valley Bank (SVB), a bank that was heavily involved in cryptocurrency, collapsed. Naturally, Democrats want to exploit the situation to rush through new regulations. But that will only make the problem worse.
The failure of Silicon Valley Bank, a forty-year old, $200 billion bank, has caused many to worry about the country’s economic stability. Among the concerned is Senator Elizabeth Warren, who wants to reinstate some of the defunct banking regulations from the Dodd-Frank Act of 2010.
But the failure of SVB would not have been prevented by more government intervention. On the contrary, the government itself—by driving up inflation and making it difficult to hedge against interest rate risk—is partially responsible for the collapse of this bank. Passing new regulations
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