Barry Ritholz made a couple of sage comments in his article “All the Things We Do Not Know About SVB” that is worth considering:
“Armchair quarterbacking the decisions of the Federal Reserve long ago became a blood sport. With the benefit of hindsight, we all are genius central bankers.”
These comments are made against the backdrop of the steepest tightening cycle by the Fed to date:
On the potential impact of the SVB bank saga:
“Over my three decades of surfing crises on Wall Street. The one unifying thread that connects all of the major events is just how little we know as they unfold, and how much we learn in the ensuing months and years. The first draft of history is typically emotional, rarely accurate and often conflicted.”
“My concern is how these preliminary half-truths and misinformation can tempt clients into making bad decisions with their capital.”
The above article was written and adapted by Marius Kilian.