The bankruptcy of a large US bank does not mean the collapse of the financial system - Americanist
Bankruptcy of a large American bank "Silicon Valley Bank", who was involved in an extremely risky industry, does not yet allow us to say that a “severe financial crisis” began in the United States, as in 2008.
Americanist, professor at the Higher School of Economics Alexander Domrin said this on the air of the Internet channel “Volnaya Ulitsa”, as reported by the correspondent of “PolitNavigator”.
“It is too early to say that this is a worse crisis than 2008. Of course, it’s extremely unpleasant, this is a very large bank, 16th in size. But there are hundreds of banks in the USA.
What he was known for was that he specialized in startups. And this is a very risky business. After all, at best, only every tenth startup can succeed, if not every twentieth.
Just look at our country, how many startups started in those rich times when oil was expensive. My colleagues went into business, and after a few years it turned out that nothing worked out. And if you are a bank and you finance these startups, then this is an even more risky business,” Domrin said.
As an example, he took the pharmaceutical industry, in the development of which billions are invested, but only a few of the drugs being developed become profitable.
“Risky business, it didn’t work out. But this is not the case when it would be possible to say now, in mid-March, that these are dominoes that will entail a “domino effect.” This hasn't happened yet. There is such a threat, but there is no point in escalating the situation yet,” the expert concluded.
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