> If they believe they are helping, why does the response always emerge suddenly on the day of the crisis with no debate or well explained contingency plan being activated?
Because that is what a crisis is, and it’s how crisis response works!
> This has to be a long-planned contingency.
You can believe that this was a long-running conspiracy or you can believe that the people involved are incompetent screwups, but how can you believe both? Someone would have talked.
Do you honestly believe that people with “skin in the game” aren’t being hurt by this? SVB shareholders lost everything.
Do you also honestly believe that you can restrict the fallout of a banking system failure only to those who caused it?
> Because that is what a crisis is, and it’s how crisis response works!
That isn't how regulators deal with crises. Governments either execute long-agreed plans or flounder for months before organising to do something half-useful. The financial regulators are unusual in that they seem to struggle with the idea of publicising their plans ahead of the event.
> how can you believe both?
It is pretty normal. One of the reasons a democracy usually does so well is it turns out that the ruling classes in non-democratic nations are both incompetent screw-ups and busy conspiring to keep themselves in power. Then the competition from more evidence-based leadership in a democracy outmanoeuvres them.
The system is supposed to purge itself when there is evidence that the powerful are making big mistakes. Instead we get people who believe "protecting the system" is a good in itself being given a printing press and being told that they can do whatever they need to do. Nobody is talking about printing money yet, but it is the US's response to almost literally every crisis these days so I assume it is coming.
> Do you also honestly believe that you can restrict the fallout of a banking system failure only to those who caused it?
No. Which is why it should have been allowed to fail 10-20 years ago when the damage would have been smaller. Low interest rates and easy money is building up bad habits and large points of failure.
"Nobody is talking about printing money yet, but it is the US's response to almost literally every crisis these days so I assume it is coming."
Printing money is how the US finances everything. If USD wasn't the reserve currency backed by US war machine, the entire country would have imploded some decades ago.
Because that is what a crisis is, and it’s how crisis response works!
> This has to be a long-planned contingency.
You can believe that this was a long-running conspiracy or you can believe that the people involved are incompetent screwups, but how can you believe both? Someone would have talked.
Do you honestly believe that people with “skin in the game” aren’t being hurt by this? SVB shareholders lost everything.
Do you also honestly believe that you can restrict the fallout of a banking system failure only to those who caused it?