Who Will Protect the Global Economy From California?
The Urge to Get Rich Quick Makes the Golden State a Threat to the World
Don’t bank on California, especially when banks are involved.
Silicon Valley Bank’s collapse is widely discussed as a harbinger of the future, a sign of problems and disruptions in the technology businesses that were its best customers. But this bank failure, the second largest in U.S. history, actually fits a very old pattern—of California and its industries putting the economies of the nation and the world at risk.
Our state’s history of precipitating economic crisis is singular, and rooted in the same California characteristic that so often makes us successful. We aren’t …