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Cash is King, But "Central Banks Can Walk & Chew Gum": BofA

Recent events at Silicon Valley Bank, Signature Bank, and Credit Suisse have made central banks concerned, pushing lending standards to tighten even before those incidents.

Image: Niconor Brown / Unsplash

Against the turbulent backdrop of the failure of numerous US banks and a crash in global banking shares, investors snatched up cash at the highest weekly pace since April 2020 in the week ending March 15, according to Bank of America (BofA) Global Research.

While cryptocurrencies defied broader risk assets last week, everyone is watching the Federal Reserve after the wildest week in financial markets since 2008.

Many are afraid that the global economy is on the verge of another calamity due to unrest in the financial industry.

Another turbulent week for banks signals the end of an era for the global economy, which may be difficult for those who were not around during the 2008 financial crisis to comprehend.

The central bank meetings in the week ahead have become a much closer call.

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