Welcome to the A Long Time In Finance Podcast; the long view of finance, markets and money as seen by two veteran City editors, Neil Collins and Jonathan Ford. Sponsored by Briefcase.News and hosted on Reaction.
“At any given time there exists an inventory of undiscovered embezzlement in — or more precisely not in— the country’s business and banks. It varies in size with the business cycle. In good times, people are relaxed, trusting, and money is plentiful. In depression, all this is reversed. Money is watched with a narrow, suspicious eye. The man who handles it is assumed to be dishonest until he proves himself otherwise. The bezzle shrinks.”
Neil, Jonathan and Izabella Kaminska of The Blind Spot apply JK Galbraith’s concept of “the “Bezzle” to Silicon Valley Bank’s (SBV) collapse. With interest rates rising, they conclude, the bezzle is shrinking.