There has been a lot of talk about the risk of financial contagion following the collapse of California’s Silicon Valley Bank. Perhaps too much talk.
While the frequency of bank runs in the past shows the power of emotions to move markets, there’s little reason to panic.
We’re not looking at anything like the circumstances that precipitated the global financial crisis of 2008. If you’ve got your savings in any bank or credit union in Australia or New Zealand, the greatest fear is fear itself.
