by Paul Craig Roberts, Paul Craig Roberts:

The failure of Silicon Valley Bank (16th largest bank in US) last Friday resulted from depositors withdrawing their funds in response to a drop in value of the bank’s bond portfolios caused by the Federal Reserve’s ill-considered hikes in interest rates.  The mindless policy implemented by the Federal Reserve cures inflation by producing bank runs, failed banks, and unemployment.  The Federal Reserve and neoliberal economists are still stuck in the worn out thinking of 20th century Keynesianism.