Bloomberg | March 10, 2023
(Bloomberg) — It’s one thing when crypto gets flattened by a fired-up Federal Reserve, or moonshot online stocks fall back to earth as rates soar. But when central bank policy starts biting into banks, investors know they have bigger problems on their hands.
Fear of systemic risk ripped across markets this week, when investors who thought they’d survived the worst of Jerome Powell’s war against inflation suffered their biggest stretch of losses in five months. Bank shares, assumed to be redoubts of safety in a rising-rate world, led the plunge, posting their worst week since the Covid crash.