Silicon Valley: Bust

It ain't what you don't know that gets you in trouble. It's what you know for sure that just ain't so. Although Mark Twain’s quote holds up to the SVB collapse as it did in 2007 and to an extent the recent failure of Credit Suisse, a Swiss investment bank -, don’t be so sure that we are going to experience another rerun of ‘The Big Short’ - yet. The S&P 500 is up 6.4% since the failure of the bank and current moods are high. However, what does this mean for the average person in the US or UK and where did this instability in the banking sector start? The Apple HQ in Silicon Valley. To answer these questions we have to go back to the Obama administration in 2010. When President Obama signed the Dodd-Frank Act, a reform that would subject nearly all banks to stricter regulation as an attempt to reduce poor business practices and overly-risky lending that caused the 2008 recession. However, some of these reforms were rolled back by the Trump Administration in 2018...