How close are we to another global recession?
In the last few days we have been reading in the local and international press about the collapse of Silicon Valley Bank, Signature Bank, the decline of Credit Suisse shares - as they reached an all-time low, ¼ of their value - together with the withdrawal of deposits, and other banking shocks which worries investors and depositors in both America and Europe. The first months of the new year have been marked by successive events that have shaken banking credibility, bringing back the bleak memories of 2008 with the collapse of Lehman Brothers. Should depositors be worried? How close are we really to another global economic recession? Who's to blame for the new crisis in the banking system? Are these isolated cases or other banks will fall in a downward spiral due to globalization, similar to Covid19 disease which spread from China to the rest of the world? We must recognize that the US government moved quickly to protect the depositors of SVB and SB banks. Accordingly, the Central ...
