First Republic falls. Is the banking crisis restarting?

Is this supposed to be humor or something? He might as well have posted a gif of a hand wave. His entire refutation is a single paragraph in the middle that says the problem was that this was a bank for rich people and "they are fickle" and they were running a risky business anyway. Zero understanding of what caused the risks and how these defer from other regional banks (hint: many other mid size banks have similar risks on their balance sheets)

Embarrassment of an article.

And yet the one month treasury is trading at a monster discount to FFR as banks scramble to bid for collateral as their balance sheets deteriorate into an upcoming rate hike and deposit run.

Again, total joke

Restarting is not the accurate word. The word we should be using is continuing. It's been continuing since 2008. There has been no financial reorganisation since then, it's been a matter of 'kicking the can down the road'. Unfortunately, it seems we have 'run out of road'.

To protect the economy, there is inflationary QE. Unfortunately, to fix that inflation we have to have much higher interest rates. Just the increase of 2% in the interest rate means that the interest rate increase alone on that 32 trillion dollars of debt is 640 billion dollars, almost as much as the Defense Budget.

So it comes down to, very soon, do we 'choose between guns or butter'? Because the US can not afford both.

According to the blog's author, $212B dollar bank lost $100B in customer deposits in a single quarter, and there's "no reason to panic over First Republic’s collapse" because "folks aren’t paying enough attention to the details."

Apparently, this is not a general pattern, just another isolated instance of a bank failing due to risky business. That's 3 in past couple months. Let's hope there aren't more.