Three days after Federal Reserve chairman Jerome Powell told Congress they might have to increase the pace of rate hikes (from 0.25 per cent to 0.5 per cent), and commentators started writing that if the Fed wasn’t careful it would “break something”, it broke something.
It was the bank of Californian tech start-ups, Silicon Valley Bank (SVB), which suffered a classic bank run, the first big one since the GFC and it had to close.
