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shares of mufg, mizuho and smfg were all down around 8% in trading. the nikkei exchange was down over 2% overall. here in europe, we ve seen credit suisse drop another 5% in early trading. on monday, major us banks lost around $90 billion in stock market value, bringing their loss since svb s collapse to nearly $190 billion. many are now speculating the federal reserve will pause its plans to keep raising interest rates, designed to tame inflation. we re nowjoined by greg swenson, who is an international investment banker and founding partner at brigg macadam. good to have you with us. let s pick up good to have you with us. let s pick up on that thought about rate because that progressive increase increase in interest rates has been one of the things cost for the collapse in svb. will the federal reserve be looking at this closely? i think the key word is maybe. goldman sachs came out yesterday suggesting that they would pause and not raise rates at the next meeting, b ....
Reserve be looking at this closely? i think the key word is maybe. goldman sachs came out yesterday suggesting that they would pause and not raise rates at the next meeting, but that is the only tool in the kit right now. the higher interest rates needed to reduce inflation in some ways crushed the cheap money expectations at svb as well as in other institutions and it has obviously hurt their asset values, the bond portfolios, but it doesn t change the fact that this is all caused by inflation and caused by both reckless fiscal policies in 2020 and 21 as well as really reckless monetary policy. it is really the only tool they have they have to weigh chances of more contagion. have to weigh chances of more contagion- have to weigh chances of more contauion. ,., , ., , contagion. i m sorry to interrupt. i m ust contagion. i m sorry to interrupt. i m just going contagion. i m sorry to interrupt. i m just going to contagion. i m sorry to interrupt. i m just going to have contagi ....