Elon Musk, the billionaire CEO of Tesla, recently made a cryptic comment on Twitter, claiming that the current monetary system is inefficient. This remark follows a string of banking crises in the United States, including the failure of Silicon Valley Bank and the closure of Signature Bank. These events have instilled fear and scepticism in the banking system, particularly among regional banks, which are now the target of sceptical investors.
In response to these crises, the US government and the Federal Reserve have taken extraordinary measures, such as the FDIC guaranteeing all Silicon Valley Bank deposits and the establishment of a new loan facility known as the Bank Term Funding Program. These measures, however, have failed to restore trust in the banking system.
