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Crisis or ‘Sentiment Contagion’? (And More Links)

230331 Sentiment Contagion Blog

The damage has been ‘largely contained.’

The conversation this week around the banking system stress turned largely to credit crunch concerns and the Senate’s Silicon Valley Bank hearings (see related Insider stories). Meanwhile, what Bloomberg described as an “uneasy calm” settled over markets that had been putting extreme pressure on bank stocks. So, has a larger banking crisis been averted? And was this a crisis at all? In a CNBC piece, Vanguard’s Sara Devereux suggests what transpired was “more of a ‘sentiment contagion’ rather than the true systemic contagion we saw during the global financial crisis”—and that the damage has been “largely contained.”  

Here are some of the related stories and ideas we are tracking this week: