March 24, 2023

Economist Sounds Off On SVB Collapse: ‘We’re On The Brink Of A 2008-Style Financial Crisis’

“This was clearly going to happen and now we are seeing the weak links in the chain break,” says Stephanie Pomboy.

The sudden collapse of Silicon Valley Bank is harbinger of a greater financial crisis on the scale of the 2008 crash, according to economist Stephanie Pomboy.

Pomboy, the CEO and founder of economic research firm Macro Mavens, joined “Tucker Carlson Tonight” Friday to explain the broader implications of the SVB collapse.

“What we are facing right now is really serious and we are on the brink of a 2008-style financial crisis and I’m not trying to be hyperbolic,” Pomboy told the Fox News host.

“At the time, the Fed hadn’t even raised rates nearly as high as they have today and as I was saying, you don’t raise rates at record fashion on an economy toting record leverage at maximum speculation and expect no consequence,” she continued. “This was clearly going to happen and now we are seeing the weak links in the chain break. You know the areas where speculation was most rampant and most egregious are clearly coming down and they are doing so a they seem to do in all the three-letter acronyms, just like they did in 2008.”

She went on to say that the Federal Reserve’s endless money-printing policies dovetailed with reckless government spending has fomented an economic powder keg.

“We’re back in the three-letter acronyms and there will be a lot more of those and frankly, I think this is the unintended consequence of the fed’s monetary policy layered with a really bad fiscal policy on top of it, but essentially we have been encouraging people to take reckless risk for years just because you had no alternative,” she said.

“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.

Meanwhile, the Biden administration is deferring to the Treasury Department for comment on SVB’s collapse.

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