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The reissue of an essay on the economic panics in the United States presents new conclusions on the common points between all these earthquakes. Illuminating.
by Robert F. Bruner* for Quillette** (translation by Peggy Sastre)
© Fatih Aktas/Anadolu Agency via AFP
Published on
Reading time: 15 mins
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Aith the recent turmoil in the international financial system, attention has once again focused on financial crises: their recurrence, the damage they leave in their wake and the calls to prevent them. The falls of Silicon Valley Bank, Silvergate Bank, Signature Bank and Credit Suisse are seen as harbingers of systemic instability. It is impossible to say what the future will bring, but to paraphrase Voltaire, God is not on the side of the big balance sheets of central banks, but of the most skilful actors in their reaction to crises.
Still, all this surprise caused by financial crises is actually surprising. It looks like we’ve seen this movie before – and even at many reps…