[qaq]

This. I think people are not paying enough attention to the fact that the "fix" is negating anti inflation measures.

[TearsInTheRain]

But also bank failures are disinflationary so is the bailout negating the rate hikes or just negating the new regime of tighter lending standards by banks? I dont think anyone has a solid answer to that question

[mattbrewsbytes]

I think the repeating pattern is the banks end up over leveraging based on value of things like MBS or this one is maybe interest rates because money has been free to them for so long (holding lots of worthless bonds I think). In the end, none of it is their money they are playing with so they have a high risk tolerance and a history of getting bailed out, bought out and at a minimum getting bonuses paid out. And then they lobby for deregulation or self-policing.

I think having a shot at solving problems involves less lobbying and more criminal prosecution and loss of operating licenses.

[adamhp]

> solving problems involves less lobbying

I think we can all agree this pretty much sums it up. Basically every major problem we face in America is the result of lobbying and gerrymandering.

[pas]

people rarely invest into new ventures, raise wages, or hire more employees during a bank run. the FDIC stepping in doesn't negate that (it probably prevented a serious crash that could have lead to even more supply chain fluctuations, which itself causes a significant portion of the inflation.)