The Fed will just bail them out like last time because not bailing them out would be absolute suicide.
National and international stability totally depends on financial institutions staying afloat with continuous money printing and lending. If people aren't borrowing because of lack of confidence, then the government has to step in and borrow. Either way, there has to be continuous money printing, lending, and borrowing for the system to fundamentally work. Ideally we don't wanna be in this Keynesian economic situation but its too late. Reversing Keynesian economics would literally mean starving to death hundreds of millions of people before we can go back to traditional economics. A more strict Austrian school of economics.
The problem is that the Fed has been steadily increasing interest rates within the past 12+ months in their efforts to lower inflation. Problem is that in doing so, it has a negative macro economic impact as far as confidence. People are hearing of layoffs and there is more fear and uncertainty than before.
Hopefully this major bank failure is a wake up call to fed chairman Jerome Powell that if he doesn't stop hiking interest rates, panic and chaos will ensue in the coming months. Yes inflation is especially bad for the people at the very bottom of our society but people losing jobs is an even greater threat overall.
If I were you guys, I'd be extra careful nowadays as far as crime is concerned. If you think you got it bad, blacks have it just about the worst and some black youths have no qualms whatsoever about robbing you and killing you over a phone and pocket change.
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