The recent fall of major banks in the United States and the need for federal intervention reignited discussions to identify the most effective ways to safeguard the crumbling economies. Comparing the episode to the financial crisis of 2008, prominent economist Peter Schiff found that increasing banking regulations contribute to the worsening financial crisis.
A deeper analysis of Silicon Valley Bank (SVB) by a group of economists revealed 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.
The 2008 financial crisis was driven by the collapse of the housing market. However, Schiff believed the crisis was caused by “too much government regulation.”
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.
— Peter Schiff (@PeterSchiff) March 17, 2023
Schiff highlighted how the US government introduced new banking regulations after the 2008 financial crash while promising that “what is happening right now would never happen again.” He added:
“But one reason we had the 2008 Financial crisis was too much Govt. regulation. That’s why this crisis will be worse.”
Finding the right balance between regulations and banking institutions is important for Schiff, considering that Puerto Rico regulators closed down Schiff’s bank not too long ago, on July 04, 2022.
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.
— Peter Schiff (@PeterSchiff) July 3, 2022
At the time, Schiff was reminded by Crypto Twitter as to why millions of people around the world vouch for Bitcoin (BTC) adoption in the quest for financial freedom.
Related: SVB mixup forces India’s SVC Bank to issue a notice of clarification
On the other end of the spectrum, crypto entrepreneurs have started to double down on Bitcoin’s epic comeback. Former Coinbase chief technology officer Balaji Srinivasan predicted that Bitcoin would reach $1 million…
Click Here to Read the Full Original Article at Cointelegraph.com News…