Recession and Financial Instability Risks

MY TAKE: Those predicting a soft economic landing may be in for a rude awakening

https://thehill.com/opinion/finance/3987045-those-predicting-a-soft-economic-landing-may-be-in-for-a-rude-awakening/ 

Brace yourselves, the banking crisis is just getting started
https://www.telegraph.co.uk/business/2023/05/05/banking-crisis-pacwest-jpmorgan-jamie-dimon/

Banks Are in the Grips of Investor Crisis of Confidence
https://www.wsj.com/articles/banks-are-in-the-grips-of-investor-crisis-of-confidence-62e05b4

HISTORY LESSON: Banking Is Heading Back to the Days of Free Toasters
https://www.washingtonpost.com/business/2023/05/04/banking-s-toaster-days-are-back-as-interest-rates-rise/879291d4-ea69-11ed-869e-986dd5713bc8_story.html
Stephen Mihm:
“… when the final text of what became known as the Glass-Steagall Act arrived on President Franklin Roosevelt’s desk in June of 1933, it prohibited banks from paying interest on any kind of pay-on-demand deposit — not just bankers’ balances. The legislation also gave the Federal Reserve unprecedented power to cap interest rates on savings and time deposits regardless of the source of funds.
These restrictions — known collectively as Regulation Q — may have been less a matter of intention than the product of rushed efforts to reconcile multiple bills. No matter: A new financial era had begun.  Henceforth, demand deposits — checking accounts, for example — could no longer pay interest, while the Federal Reserve generally capped interest rates on savings accounts and certificates of deposit at about 2.5%”.