Why is it that panic is never far away when it comes to banking and bank failures? Is it always a systemic issue with wide-ranging effects? Why can’t these latest banking debacles in California, and New York, be isolated examples of mismanagement, instead of a catalyst for the predictable gloom and doom reaction in the media?
Funny thing about money—whenever it is involved, people get quite passionate about making more of it. It’s an unhealthy risk/reward mindset when you’re playing with other peoples’ cash.
It seems untenable to have such seeming fragility built into a system that should be much more robust, and even, as Elizabeth Warren puts it, boring. Boring is good in banking.