Mar 19, 2023
Economist Warns: Regulatory Overload Could Cause Worse Financial Crisis Than 2008
The United States banking system is in a precarious state and the need for federal intervention is becoming more and more evident. The latest episode has been compared to the financial crisis of 2008, and prominent economist Peter Schiff believes that the government’s regulations are to blame.
A group of economists recently conducted a deep dive into Silicon Valley Bank (SVB) and found that nearly 190 banks in the United States are at risk of a depositor-driven collapse. It was highlighted that the monetary policies penned down by central banks could hurt long-term assets such as government bonds and mortgages, creating losses for banks.
In a tweet, Schiff stated: “When the Govt. imposed lots of new #banking regulations after the 2008 #FinancialCrisis, we were assured that what is happening right now would never happen again. But one reason we had the 2008 Financial crisis was too much Govt. regulation. That’s why this crisis will be worse.”
The economist’s own bank in Puerto Rico was closed down on July 4, 2022, despite there being no evidence of crimes. He tweeted: “Despite no evidence of crimes, Puerto Rico regulators closed my bank anyway for net capital issues, rather than allow a sale to a highly qualified buyer promising to inject capital far in excess of regulatory minimums. As a result accounts are frozen and customers may lose money.”
The current situation has caused some to turn to the cryptocurrency space, with the former Coinbase chief technology officer Balaji Srinivasan predicting that Bitcoin (BTC) will reach $1 million in value within 90 days.
To back up his prediction, Srinivasan made a bet with Twitter user James Medlock based on their different views of the U.S. economy’s future. The bet circles around an impending crisis that will lead to the deflation of the U.S. dollar and take the BTC price to $1 million.
The cryptocurrency space is becoming increasingly attractive to those looking for financial freedom, with many entrepreneurs turning to NFTs (non-fungible tokens) for promotion and marketing purposes. NFTs are digital assets that are unique and can be sold and traded on the blockchain.
Twitter has become an ideal platform for NFT promotion and marketing, and many web3 agencies are offering services to help people create and sell NFTs. As the demand for NFTs grows, the need for NFT marketing agencies is becoming more and more apparent.
NFTs have the potential to revolutionize the way we look at digital assets and financials, and the cryptocurrency space is offering a much needed alternative to traditional banking systems. It remains to be seen whether Srinivasan’s prediction will come true, but it is certainly a sign that the crypto space is gaining more and more attention.
Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.
