Lenders face a lot of risks, but two of them – interest rate and liquidity – were the main drivers of the sudden and rapid failure of Silicon Valley Bank and Signature Bank. That’s why more trouble may be ahead for the banking sector.
Massive borrowing to fund NZ’s economic recovery due to COVID-19 cannot be written off without the risk of worsening the crisis it was designed to meet.
Bitcoin’s rise and fall to date already makes it one of the greatest market bubbles in history. In turbulent times, some have suggested it as a substitute for gold, but it lacks some vital attributes.