"Crony" Capitalism?

“With some notable exceptions, businessmen favour free enterprise in general but are opposed to it when it comes to themselves”- Milton Friedman.

Much has been said and written about the Silicon Valley Bank (SVB) collapse and the subsequent events that unfolded post the meltdown. So, I would not waste your precious time by repeating the obvious.

However, we can’t ignore the precedence that the Federal Reserve has set in tackling the SVB crisis. Furthermore, the episode again brings to the limelight the complete failure of regulatory oversight by the regulators.

The preposterous policy that the Fed has unleashed to avoid a “systematic” collapse of the US banking system has transformed the basic foundation of monetary policy. As a result, some say that we are on the cusp of a “turbocharged” monetary policy.

Though we will cover this in detail today and its long-term implications, the one…